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Impact of US Tariffs: TLi Group Reports 13.9% Drop in May Revenue

Impact of US Tariffs: TLi Group Reports 13.9% Drop in May Revenue

TLi Group (2908) reported that its consolidated revenue for May was NT$28.46 billion, a decrease of 13.9% compared to the same period last year. The cumulative revenue from January to May totaled NT$140.86 billion, reflecting an 8.45% year-on-year decline.

Of this, the trade division generated NT$14.5 billion, accounting for 51% of total revenue; the retail division contributed NT$10.2 billion, representing 36%. TLi indicated that the drop in the trade unit's revenue is primarily due to the impact of reciprocal tariff policies affecting the US market, which has led customers to adopt a cautious stance. Consequently, many customers are postponing orders or reassessing delivery timelines, particularly in the US market.

Although the trade division's shipping momentum remains suppressed, TLi had initiated a global procurement strategy several years ago in response to the onset of the tariff war, allowing for flexibility and efficiency in adapting to the trend of sourcing outside China in the North American market. The company plans to closely monitor future government policies related to the trade war to ensure a high level of operational resilience and competitive advantage.

TLi Home generated NT$7.2 billion in revenue for May, which declined compared to the same month last year due to a significant drop in housing transactions across the six major cities and weakened demand for home purchases. Despite the challenging external environment, TLi's retail sector is actively enhancing its sales organization to improve customer service.

Furthermore, Zhongxin Industrial recorded a consolidated revenue of NT$3.8 billion in May, with project engineering proceeding steadily according to plan, and the company continues to pursue new projects to showcase its strength and potential in providing comprehensive building lifecycle solutions.