WKK INTL (HOLD) (00532) expects the net consolidated loss attributable to shareholders to be around HK$2.3 million to narrow by about 79% year over year

Zhitong Finance App News, WKK INTL (HOLD) (00532) issued an announcement. Based on a preliminary assessment of the Group's unaudited consolidated management accounts for the six months ended June 30, 2026 (interim period), (1) the Group expects to obtain a consolidated net loss of about HK$2.3 million in the interim period, compared with the net consolidated loss attributable to holders of the Company's equity holders of HK$11 million in the same period in 2025; and (2) the Group is expected to be consolidated during the interim period Profit after income tax was approximately HK$2.4 million, reflecting an improvement in operating performance compared with a consolidated loss of about HK$3.4 million after income tax for the same period in 2025.

According to available data, the expected improvement in financial performance is mainly due to the following factors:

i. The Group's Trade and Distribution Division achieved a significant increase in operating profit in the medium term, up from the same period in 2025, despite a sharp drop in revenue. This ideal performance is mainly driven by increased demand for products distributed by the Trade and Distribution Department's subsidiaries in China and Southeast Asia. Among them, equipment used in the manufacture of multi-layer printed circuit boards is particularly prominent.

Consistent with the main demand drivers observed in 2025, the capital expenditure of customers in the circuit board manufacturing and semiconductor industry remained strong in the medium term, mainly supported by investment driven by demand related to artificial intelligence. As a result, the increase in sales of higher-margin products was enough to offset the decline in revenue of one of the Taiwanese subsidiaries of the Trade and Distribution Department. Due to the high level of capital investment already made by the relevant customers in 2025, their procurement activities have slowed during this period. This performance reflects the ability of the Trade and Distribution Department to maintain steady development and further consolidate its competitive advantage in the market.

ii. The Group's original product manufacturing division achieved a slight increase in revenue during the medium term, up from the same period in 2025, mainly due to an increase in shipments at its manufacturing facility in Dongguan. The increase was due to a major product manufacturing customer increasing inventory levels in response to future market demand expectations.

As a result, the operating losses of the Original Products Manufacturing Division in the medium term narrowed further compared to the same period in 2025. This improvement is mainly due to the strategic optimization of the product portfolio, increasing the proportion of high-margin orders, and continuing to implement measures to improve operational efficiency, enhance productivity, and improve cost management. The above measures will help the original product manufacturing department improve profitability and business resilience in a continuously changing economic environment.