Ta Yang Group Holdings Limited (1991.HK) announced its interim results for the six months ending June 30, 2025, revealing a return to profitability. While sales revenue decreased year-on-year by approximately 43.5% to HK$290,663,000, the company achieved a substantial 66.6% increase in gross profit, reaching approximately HK$61,800,000. This was due to improved gross profit margins, rising from 7.3% to 21.3%, driven by cost-cutting measures and a focus on technology service upgrades. The online marketing solutions segment saw particularly strong improvements.
Operating expenses also decreased significantly. Selling and distribution expenses fell by 10.9% year-on-year to HK$11,400,000, while administrative expenses dropped by 29.3% to approximately HK$44,800,000. These factors contributed to the company’s overall profitability.
Despite challenges such as volatile China–US tariffs and supply chain disruptions, Ta Yang Group maintained a strategic focus on three key areas. These included stabilizing its silicone business, expanding its digital marketing operations, and integrating its UK supermarket business. The company emphasized maintaining high product quality, expanding its client base, and optimizing production.
Although digital marketing revenue declined, profitability within this segment increased substantially, positively impacting the overall results. Jusheng Technology, the company’s Douyin (TikTok) operations service provider in Mainland China, plays a key role, providing comprehensive services including account management, content creation, and advertising solutions. Ta Yang Group plans to continue investing in this segment due to its perceived growth potential.
The company’s strategic transformation centers on Web 4.0, focusing on AI digital humans and RWA tokenization. Ta Yang Group intends to expand into education, gaming, and healthcare sectors, promoting data standardization and global collaboration. The company also plans to develop AI digital humans and create a global AI digital entrepreneurship platform to facilitate industry integration and capital flow.
Ms. Shi Qi, Chairlady of Ta Yang Group, highlighted the company’s strategic blueprint for AI and digital transformation. She emphasized the integration of Web 3.0’s decentralized architecture with AI’s capabilities in the Web 4.0 era. She stated that this fusion of AI and RWA is expected to generate significant value for shareholders.
Ta Yang Group, founded in 1991 and listed on the Hong Kong Stock Exchange in 2007, initially focused on silicone input devices. The company’s transition to Web 4.0 reflects a shift from traditional manufacturing to a leadership position in the digital economy. The company aims to become a leading player in AI and RWA in the Asia-Pacific region, building a value-growth ecosystem for investors and partners.
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