WKK INTL (HOLD) posts HK$2.43 million interim profit on stronger Trading arm; shareholder loss narrows 79%, revenue slips 7.2%

Bulletin Express
Aug 24

Hong Kong – 25 August 2026 – WKK INTL (HOLD) (Wong’s Kong King International (Holdings) Ltd.) released its unaudited 1H 2026 results, highlighting a return to group-level profitability despite softer top-line growth.

Financial highlights (six months to 30 June 2026) • Revenue: HK$1.69 billion, down 7.2% year-on-year (YoY) • Operating profit: HK$39.44 million, triple the HK$12.78 million recorded in 1H 2025 • Profit before tax: HK$30.87 million, up 142.6% YoY • Profit for the period (after tax): HK$2.43 million versus a HK$3.41 million loss a year earlier • Loss attributable to shareholders: HK$2.34 million, sharply reduced from HK$11.04 million • Basic and diluted loss per share: HK0.32 cent (1H 2025: HK1.51 cents) • No interim dividend declared (unchanged)

Segment performance 1. Trading & Distribution – Revenue fell 16.8% to HK$770.73 million, largely on lower Taiwan sales. – Segment operating profit rose 13.7% to HK$78.52 million, aided by robust mainland China and Southeast Asia demand for PCB and semiconductor equipment and a richer product mix.

2. OEM Manufacturing – Revenue increased 4.3% to HK$914.05 million, supported by higher shipments from the Dongguan plant. – Operating loss narrowed 28.4% to HK$41.85 million, reflecting product-mix optimisation and continued cost-efficiency initiatives.

Key profitability drivers • Gross margin improvement stemmed from higher-margin Trading & Distribution sales and better cost control in OEM operations. • Net finance costs held steady at HK$11.91 million. • Income-tax expense rose 76.2% to HK$28.44 million, mainly on higher taxable profits in PRC and Taiwan units. • A HK$159.48 million fair-value gain on equity investments contributed to a total comprehensive profit of HK$187.14 million (1H 2025: HK$3.29 million loss).

Balance-sheet and cash flow • Total assets: HK$3.31 billion (31 Dec 2025: HK$2.99 billion). • Equity: HK$1.61 billion; current ratio improved to 1.57x. • Cash and short-term deposits: HK$732.72 million, up HK$118.38 million since year-end. • Bank borrowings: HK$596.07 million; net cash position HK$79.10 million versus net debt of HK$50.40 million six months earlier. • Capital expenditure moderated to HK$2.70 million (1H 2025: HK$4.10 million). • Contingent liabilities stood at HK$69.60 million, mainly letters of credit.

Operational updates • Completion of voluntary liquidation of Dongguan Nissin Plastic Products in June 2026. • Preliminary assessment under way for potential property acquisition in Taiwan to support subsidiary operations.

Outlook Management expects Trading & Distribution to benefit from ongoing technology-driven demand in PCB and semiconductor sectors, while OEM Manufacturing targets further loss reduction through cost discipline and product-mix optimisation in 2H 2026. The Group remains focused on customer engagement, operational efficiency and maintaining a solid liquidity profile amid persistent macroeconomic uncertainties.

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