Symbol

EVA HOLDINGS(00838) Company Profile

		Company Profile
	Stock Name	EVA Precision Ind
	Listing Date	2005-05-11
	Sector	Industrials
	Chairman	ZHANG Hwo Jie
	Par Value	0.1
	Total Issued Capital	1.730B
	Market Cap	1.921B
	Principal Activities EVA is a vertically-integrated precision metal and plastic mould and component manufacturing service provider. The Group's existing services include mainly i) design and fabrication of precision metal stamping and plastic injection moulds; ii) manufacturing of precision metal stamping and plastic injection components by using tailor-made metal stamping and plastic injection moulds; iii) lathing of metal components; and iv) assembly of precision metal and plastic components manufactured by the Group into semi-finished products and finished products through automated technologies such as laser welding. At present, the businesses of the Group cover mainly office automation equipment and automotive components. Latest Results The Group's profit attributable to shareholders for the 6 months ended 30-06-2025 amounted to HKD 134.9 million, an increase of 5.6% compared with previous corresponding period. Basic earnings per share was HKD 0.078. A dividend of HKD 0.0233 per share was declared. Turnover amounted to HKD 3.06 billion, an increase of 1.9% over the same period last year, gross profit margin up 0.2% to 20.3%. (Announcement Date: 27 Aug 2025) Business Review - For the six months ended June 30, 2025 OA equipment The Group has been developing its OA equipment business for more than three decades. With industry experience and excellent product quality, the Group has won unanimous praise and trust from customers, and our products have earned market favour. While geopolitical tensions continued in the first half of 2025, the actual tariff disputes broke out in the second quarter, thus began to affect the Group’s OA equipment business, causing a slight drop in sales in the first half year. The tariff influence is mainly on pushing up product prices and lowering order demand from end-users, and eventually requiring revision of customer sales order forecasts downward for the coming year. For the period, overall turnover of the OA equipment business decreased to HK$2,016,535,000 (1H2024: HK$ 2,056,701,000), 2.0% less than in the same period last year. In particular, the traditional OA equipment sales were down 6.0%, the main reason being the decline in sales of key market leading brands such as Fujifilm, Kyocera and Hewlett-Packard. Since 2022, the Group has strategically laid out its ICT business, actively engaging in the high-end IT industry. During the first half of 2025, sales related to server components saw a significant year- on-year increase of 60.1%, mainly reflective of the substantial surge in sales to major customers such as a Chinese high-tech customer. During the period, the Group continued its in-depth involvement in multiple projects of the major strategic ICT customers and secured large orders. At the same time, it also stepped up efforts to acquire other new customers in China to lay a foundation for landing continuous orders, showing its strong capabilities in R&D and growing the server market. Furthermore, during the period, the Group adopted advanced production processes and automated equipment, and actively promoted lean production and cost-efficiency measures. This greatly improved production efficiency, lowered costs, and earned strong customer recognition. Leveraging the Group’s core capabilities and resource advantages, the ICT-related business will steadily expand in scale and strength, becoming a key growth engine and core competitive advantage for the Group’s future. The Vietnam market has been affected by geopolitical factors. In 2025, traditional OA equipment business has been gradually shifting to the south, while typhoon hitting in September last year had delayed certain production to the current year, sales in Vietnam therefore rebounded by 15.8%, mainly from the increase in orders from Fujifilm and Kyocera. The Group has been expanding its industrial park in Vietnam to match the relocation of OA equipment orders to the south. However, with the business relocation in progress and the geopolitical issues, orders from Southern China are expected to continue to drop in coming years, and as it takes time for the Vietnam facilities to expand production capacity so as to accommodate more orders, thus, eventually the Group expects to have to go through an adjustment period, with production on general decline, during the shift of OA equipment business orders to the south. Yet, the management believes that will only be temporary. Vietnam’s manufacturing industry experienced short-term disruption from US tariff policies, however, production volume and business confidence have apparently rebounded in recent months. Expecting the manufacturing sector in Southeast Asia still having strong appeal, the Group sees output capacities of its industrial park in Hai Phong, Vietnam and its temporarily leased factories in surrounding areas to be in high demand.To meet customer needs, the Group commenced construction of a new industrial park on a newly acquired leasehold land in Quang Ninh Province, Vietnam in 2024. The new industrial park will span approximately 60,000 square meters, 1.6 times the space in the existing Haiphong industrial park, and is expected to be completed and in operation in early 2026, helping raise the Group’s overall production capacity markedly. The Group will adjust the completion schedule of the new industrial park regularly with the development plans of and orders from customers taken into account. The Group believes the shift of orders to the south will help consolidate the competitiveness of its business, allowing it to take advantage of the low costs, policy incentives of Vietnam and her proximity to China to grow its OA equipment business. The Group is optimistic about the prospect of its business in Vietnam in the next few years. In Shenzhen, prompted by intensifying geopolitical issues, leading Japanese customers, such as Fujifilm and Kyocera, has moved their orders to Southeast Asia. However, the impact of that shift was partially offset by the modest growth in local products, and turnover increased by 1.9%. In Suzhou, with Canon and Ricoh continuing to relocate orders to the south, turnover was roughly the same as in the same period last year, only up slightly by 0.5%. Given that Southern China region, impacted by the tariff issue, has accelerated the shift of orders to the south, the Group will actively strengthen its strategic partnership with customers to cope with market changes. Moreover, it will thoroughly evaluate and drive the expansion of Southeast Asia markets, taking full advantage of the production strengths and matching resources in the region to better serve key strategic customers. Through these measures, the Group hopes to improve its overall competitiveness and responsiveness to the market while securing more orders, so as to lay a solid foundation for future development. The Group’s industrial parks in Weihai continue to serve as the primary centres for the OA equipment business to manage domestic sales orders. The business is operated by the EVA Weihai (Double Islands Bay) Electronic Industrial Park (“Weihai (Double Islands Bay)”) and EVA Weihai (Intops) Electronic Industrial Park (“Weihai (Intops)”). Since 2024, the overall sales of Weihai have shown continual decline, mainly due to domestic economic downturn causing macroeconomic changes, impacting the OA equipment business in China, as well as the changes in consumption patterns and habits of Chinese consumers. Among modern users, the mid-range-to-low-end office and home printers seem to be more popular, and since such high-end Japanese OA equipment customers have been gradually reducing their production scale in China, thus affecting the Group’s overall operation in Weihai. During the period, overall sales in Weihai dropped significantly by 40.0% year-on-year. Therefore, the Group signed a sale and purchase agreement with Weihai Gaoxin Innovation Park Operation Management Co., Ltd in July 2025 to sell the land parcel and factory premises at Weihai (Intops). The Group plans to consolidate the current business operations of Weihai (Intops) with its industrial park in Weihai (Double Islands Bay) to optimise and streamline resource allocation, and improve overall manufacturing, production and operational efficiency, which is in line with its long-term strategic focus. The move will not only help centralise management and enhance synergies, but also help lower operating costs and improve the Group’s market competitiveness. Furthermore, with the land parcel and related properties sold at reasonable prices, the Group has realised the value of its assets to help improve cash flow and financial support for future development. During the period, the segment recorded profit of HK$138,962,000 (1H2024: HK$164,533,000) with segmental profit margin at 6.8% The decline in segment profit was mainly due to an overall drop in OA equipment orders, especially at the industrial park at Double Islands Bay, Weihai, where post- expansion market conditions caused a sharp order decrease and capacity utilisation decline. However, previously deployed equipment, personnel and other resources resulted in unavoidable fixed costs.Meanwhile, the expansion of the new industrial park in Quang Ninh Province, Vietnam, also generated some pre-operating expenses, collectively affecting the segment’s profit. However, during the period, the Group continued to focus on strengthening inventory management, reducing low-margin products, improving order quality, and streamlining its structure, partly offsetting the impact caused by the decline in orders. Looking ahead, the Group will continue to keep its OA equipment business stable, develop more practical products based on market demand, thereby expand room for development. Automotive components In the first half of 2025, with the US proposing global tariff measures that would raise trade barriers, the global automotive industry faced higher manufacturing and sales costs challenge. That also created uncertainties along the global supply chain, pushing up operational expenses, thus placed substantial pressure on the profitability of the industry. Coupled with fierce competition and the fragmented supplier base worldwide, the business environment became even more challenging. However, focusing on innovation and scale, the automotive components business has shown strong resilience during such testing times, and achieved double-digit revenue growth again since it began business. The progress is the result of the Group’s strategic focus in recent years on emerging technologies like new energy vehicle (“NEV”) and autonomous driving, which have spurred a surge in demand for various components, with such new emphases as automotive lightweighting, batteries, and electronic control. By exploring opportunities in the NEV market, increasing relevant R&D investment, timely and flexibly adjusting its business plans, and optimising strategic deployment, the Group saw growth in both revenue and profit from its automotive components business. During the period, the segment performed well. At the hard work of its sales and production teams, turnover of the business increased by 10.1% year-on- year to HK$1,038,792,000 (1H2024: HK$943,078,000). In the latest two years, the Group has actively promoted technology R&D and market expansion in the new energy field. As the strategic customer base of NEVs gradually grows, the segment has also been able to secure more new orders on hand.Production for many of them has gradually begun in 2024, allowing the steady release of production capacity of the industrial parks in Wuhan, Chongqing and Mexico, and the segment to record double- digit growth in turnover. Benefiting still from the strong sales momentum built up in 2024, the Wuhan industrial park continued to deliver brilliant results in the first half of 2025, with sales climbing 32.4% against the same period last year, thanks mainly to the steady increase in the production scale of the Great Wall Motors project and the achievements in phase made in developing new markets. During the period, the industrial park landed orders for moulds, seat frames, chassis and other components from NEV customers at home and abroad, including Changan Automobile, Nobo Automotive, Stellantis and Tesla, and also brought new business sources and growth momentum to the Group’s domestic and overseas automotive components production bases. As the Group’s technology development and management & control centre, the Wuhan Industrial Park performs key tasks including providing technical support, mould development and product R&D for those new projects. To cater to global export demands for regions including Europe, the United States and the Middle East, the industrial parks in Wuhan and Mexico collaborate, with the former responsible for technical solutions and development, and exports to regions except North America, while the latter focuses on mass production orders from North America, working together to develop orders from the global market. Going forward, the Wuhan Industrial Park will continue to step up internal mechanism reforms, actively introduce and apply cutting-edge technologies, and accelerate product upgrades to consolidate its position in the high-end market. To date, other than having strengthened its technical reserves for welding assembly in such as automobile seat and chassis, the industrial park has also been actively recruiting various talent in order to help it secure more high- quality orders and drive sustainable growth in the future. The industrial park in Shenzhen, although small in land area, is the Group’s central production base for automobile seat moulds, which are primarily exported to the US and European markets. To mitigate operational risks from relying on the US and European markets, it also develops the domestic and Japanese markets. During the period, turnover of the automotive component business in Shenzhen increased by 23.9%, braced mainly by the increase in mould orders for export to Europe. During the period, the Group continued to actively invest in and roll out its market expansion strategy to increase its presence in overseas markets. Among the new orders on hand now, there are those for Adient’s mould and component project in Japan, marking a business breakthrough in the Japanese automotive components market. That not only speaks clearly to the quality of the Group’s seat frame mould products and R&D capabilities recognised by world-leading automotive seat suppliers, but has also opened a new business growth channel for the Group. With the cooperation between the Group and Japanese brand customers diving deeper, the new batch of orders are expected to give the Group momentum to achieve rapid growth in the next five years, helping consolidate its competitive advantage in the global automotive components industry chain. In the first half of 2025, the Group’s automotive component business in Chongqing was in a new rapid growth phase, demonstrating strong development momentum. During the period, turnover of the operation increased by 31.2% year-on-year. The Chongqing Industrial Park has actively introduced advanced smart production equipment from around the world to significantly improve automation and efficiency. At the same time, it provides customers in the Chinese southwestern market with ancillary services including simultaneous design and engineering of auto body parts and supply of functional components of and assembly for auto body. In Chongqing, the Group further strengthened strategic partnerships with high-quality domestic automakers like Great Wall Motors and Changan Automobile, broadening cooperation areas and project reach. This successfully boosted technical collaboration and production-sales coordination, accelerating the Group’s business goals for Chongqing and the southwestern region of China. In 2025, the Group was deeply involved in developing several popular car model projects such as Changan Deepal and Avatr in Chongqing. These models saw sales performance climbing in 2025 and are expected to sustain growth and mark a new milestone for turnover from the Chongqing industrial park. In Zhongshan, weighed down by geopolitical risks, production of Japanese brand vehicles in China declined markedly in the past two years. Sales of especially Honda, Toyota and Nissan have been sluggish, hence correspondingly turnover from Southern China also shrank for the Japanese customers of the Group in Zhongshan, including Aisin, Yachiyo and Faurecia. Responding to changes in the industry landscape, the Group promptly adjusted its development strategy in Zhongshan, shifting focus from Japanese automotive customers to investing more resources and efforts in the NEV field, emphasising in particular development of products related to the new“three-electric”(battery, motor and electronic control) system. In addition to actively pursuing in-depth cooperation with a core customer in an in-vehicle electronics project, the Group vigorously expanded its customer base, optimised product structure, and strived to diversify its customer and business portfolio, so as to reduce the operational risks from relying on single market for the Zhongshan Industrial Park. During the period, turnover from Zhongshan fell slightly by 3.8%, with decline in the traditional business offset by the new“three electric”system business. Meanwhile, the Group continued to implement measures to reduce costs and increase efficiency in Zhongshan to enhance the Group’s competitiveness in the industry. In Mexico, the Group adjusted its order strategy in the first half of 2025, and turnover decreased by 5.6% year-on-year. Since existing customer orders exceeded production capacity, and the margins of some projects were contracted, in order to maintain efficiency and support long-term growth, the Group actively optimised its project structure to free up production capacity for high-value orders, improving operational quality and profitability. In 2025, benefited from the Wuhan Industrial Park’s core technology and resource support, the Group has begun to consolidate and strengthen the management capabilities and operational synergy of the Mexican team. In the second half of 2025, the Group’s efforts in Mexico will focus on cost reduction and efficiency enhancement. By optimising processes, management and quality control, the Group aim to improving overall product quality and profitability.At the same time, the new 630T press the Group bought for in Mexico in 2025 will begin operation in the second half year, which will see the production capacity there expand to better respond to the growing and diverse order demands from customers in Mexico. During the period, the utilisation rates of the Group’s industrial parks in Wuhan and Chongqing notably improved. At the same time, by gradually cutting low-margin products for existing customers to raise overall product value, the quality of customer orders continued to improve. As a result, overall segment profit of the automotive component business markedly increased. In the first half of 2025, the business made profit of HK$85,406,000 (1H2024:HK$51,806,000) with segmental profit margin at 7.8%. Business Outlook - For the six months ended June 30, 2025 Entering the second half year, the global political and economic environment will still be full of uncertainties. The ongoing geopolitical turbulence and persistent tensions among countries will obstruct international cooperation and trade. The US kicking off implementing tariff policies has made international trade environment more complicated and increased the risks and costs of business operations. On the other hand, with major economies entering the interest rate cut cycle, investment and consumer sentiment will likely be stimulated, but then that will trigger concerns over inflation risks as well, subsequently presenting double pressure on economic recovery. With different regions rolling out tax reforms and strategies to reallocate global capital flows and investment, business deployment and decisions of the Group as a multinational enterprise has been affected. In addition, the increasing frequency of extreme weather events has brought uncertainties to the production supply chain and economic activities, adding to market volatility and risks. While ridden with uncertainties, the challenging investment environment is also simmering with new development opportunities, requiring the Group to stay vigilant and flexible. In recent years, the global laser printer market has continued to grow steadily. The Group believes the order decline caused by tariff policy adjustments is temporary, that overall development of the sector remains resilient. In the laser printer market, mainstream international brands such as HP, Canon, and Fujifilm have claimed dominance for a long time, with advanced technologies and strong product lineups, helping them strengthen relationship with key clients in the corporate, education, healthcare, government and financial sectors. However, in recent years, as the Chinese economy thrives and can rely more and more on her own industrial chain, plus some domestic brands such as Lenovo, Pantum, and Zhixiang actively investing in independent R&D to meet demand for value-for-money products in the local market, the market share of domestic models has significantly increased. According to survey data of IDC and other third-party organisations, the market share of domestic brand laser printers in China has increased from 16% in 2010 to 42% in 2025, reflecting the rapid rise and increasing penetration of those brands in the domestic consumption market. Although the paperless office trend in recent years has prompted digitalization of certain applications, affecting the demand for low-end and general-purpose laser printers, high-end and multi-functional laser products with advantages including operating at high speed, low cost, being energy efficient, eco-friendly, and high printing quality have continued to gather strong growth momentum in the enterprise market. Especially in the public sector, financial industry, logistics and healthcare sectors, there are still massive rigid demand for printing of receipts, statements, and documents, which cannot be completely replaced by digital solutions, which explains the stable shipments and market shares of major brands in those fields. At the same time, the Chinese market has shown great growth potential. As the economy transforms and consumption patterns change in the country, public institutions and small and medium enterprises are purchasing large numbers of China-made equipment. With domestic brands having cost and supply chain advantages, the laser printers they made have gradually become mainstream choices in China. That has not only reduced the dependence of enterprises on imported equipment, but has also helped Chinese brands actively deploy in emerging markets such as Southeast Asia, South America and the Middle East. In addition, with the Chinese market valuing such innovative directions as cloud management, mobile applications, and ecosystem services, local brands have been expanding their product lines, boosting customer stickiness and brand value, transitioning from traditional business models to effectively enhance competitiveness. Holding a leading share in the OA equipment market, the Group, heeding the rise of domestic printer brands and the country promoting self-sufficiency of her IT application and innovation industry, has rapidly adjusted its strategy pinpointing the Chinese market. It is now working closely with domestic chip manufacturers and related ecosystem enterprises to jointly develop and launch printer products for independent Chinese brands. On top of meeting the diverse needs of local brands and the printing market in Mainland China, the move is also conducive to enhancing the overall level of self-sufficiency and control of the industry chain, driving the in depth integration of the Group’s products and technologies with the local industry and fortifying its market leadership. Facing international tariff pressures and geopolitical uncertainties, the Group will speed up deployment of production capacity overseas, actively increase production capacity in Vietnam, and has plan for the new industrial park in Quang Ninh, Vietnam to start operation early next year. The move, in addition to allowing the Group to effectively disperse regional risks, will also equip it for responding quickly to the growing demand for high-value products in major markets worldwide. At the same time, the Group is actively reviewing the scale of production capacity in Southeast Asia and expects there will be opportunities in the future to explore setting up factories and adding production lines in other Southeast Asian countries, to build a more flexible global supply chain, strengthen its competitiveness and risk resistance. In the automotive sector, according to third-party organization forecasts, global light vehicle sales will only grow by approximately 1.7% in 2025. With the overall auto market slowing down, the performance of markets in Europe and the United States are lacking lustre, Asia (particularly China) has continued to be the market growth driver. As the global automotive industry faced multiple pressures from such as tariffs, high costs, and the transition to NEVs less than desirable, enterprises have to direct their resources to cope, in particular, focusing on developing traditional fuel vehicles and NEVs at the same time. Electrification, going intelligent and overseas markets have become the driving forces of rapid growth of China’s auto industry, seeing it into a new stage of development. Looking at the second half year, policies such as trade-in and promotion of NEVs in rural areas will continue to stimulate the domestic NEV market. NEVs are clearly gaining dominance in the automotive market, commanding enterprises to continuously improve their products, technologies, and quality. Facing profound changes in the international and domestic environment, the Group has strived for innovative breakthroughs and to improve its capabilities, strengthening its core technological strengths. At its continuous investment in innovation including smart manufacturing, green technology and advanced materials, and training high- tech talent and professional teams, the Group expects its automotive component segment to maintain stronger growth momentum in the second half year. That will not only show the Group enjoying high market recognition for its products and services, but also its strengths in maintaining stable operations and its leadership in the complex and volatile industrial environment. With the advent of the AI and big data era, global demand for data centres has grown notably, and that has in turn fuelled the demand for high-performance, highly reliable and high-quality servers and equipment. Such servers and relevant equipment supporting storage and processing of massive data, are not only part of the core infrastructure for digital transformation, but are also irreplaceable in enabling intelligent operation and innovative applications of enterprises. Hence, the demand for high- quality servers will continue to rise steadily in the future and become an important growth driver in information technology field. That considered, the Group will develop ICT business to meet changing market demand with the support of its global production layout and strong R&D team. Looking ahead, development of the ICT business will become an important growth engine for the Group, likely to allow it to reverse the outflow of OA equipment orders from Southern China, as well as offset the decline in export of automotive components and moulds, and the sluggish Japanese automotive business, bringing to it new vitality and business opportunities. The Group aims to continue to grow in greater depth its two core businesses: namely the OA equipment and the automotive components, while pursuing diversified industrial upgrades, including developing the ICT business to combat unpredictable market risks. In the future, the Group will continue to seek guidance from technological innovation, actively embrace changes, seize new development opportunities to promote high-quality and sustainable development of its businesses. Source: EVA Precision Ind (00838) Interim Results Announcement

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