Ka Shui International Holdings (Ka Shui) reported a marked improvement in full-year profitability despite a modest revenue dip, underscoring the benefits of tighter cost controls and a stronger product mix.

Financial highlights • Revenue edged down 1.2% to HK$1.46 billion for the year ended 31 December 2025. • Gross profit increased 3.8% to HK$225.36 million, lifting gross margin to 15.4% from 14.6% a year earlier. • Loss attributable to shareholders narrowed 54.5% to HK$27.91 million. • EBITDA rose 31.9% to HK$91.14 million. • Basic loss per share reduced to 3.12 HK cents (FY24: 6.86 HK cents). • No final dividend declared.

Segment performance • Magnesium alloy: Revenue jumped 34.3% to HK$621.42 million (42.5% of group total) on strong automotive demand; however, competitive pricing and higher production costs turned a HK$1.83 million profit in FY24 into a HK$6.23 million loss. • Plastic components: Revenue fell 17.8% to HK$559.53 million, yet segment profit surged to HK$25.19 million (FY24: HK$5.61 million) on efficiency gains and cost discipline. • Aluminium alloy: Revenue declined 17.9% to HK$199.20 million, with segment profit at HK$4.77 million. • Zinc alloy: Revenue recovered 25.5% to HK$61.38 million, generating HK$4.71 million profit. • Other businesses (lighting, vehicle services, new-energy vehicle power systems, etc.) contracted 53.3% to HK$22.04 million, posting a HK$4.62 million loss.

Geographical mix Mainland China remained the largest market, contributing HK$881.57 million (60.2% of total revenue). The United States accounted for HK$427.88 million (29.2%), while Hong Kong and other regions provided HK$46.73 million and HK$107.40 million respectively.

Balance-sheet and liquidity • Cash and restricted bank balances totalled HK$276.80 million against interest-bearing debt of HK$202.96 million, leaving the group in a net cash position of HK$73.85 million. • Current ratio improved to 1.7; net assets stood at HK$1.19 billion.

Post-balance-sheet event On 17 March 2026, Ka Shui Metal Co. agreed to acquire the remaining 40% stake in Kamay New Material Technology (Yulin) for RMB14.3 million, converting the entity into a wholly owned subsidiary. The transaction qualifies as a discloseable transaction under Hong Kong listing rules.

Outlook (management commentary) Management expects global macro-volatility to persist in 2026 but remains “cautiously optimistic,” citing structural growth drivers such as vehicle lightweighting, AI-related electronics demand, low-altitude aviation and humanoid robotics. The group emphasised its integrated magnesium alloy supply chain and recent material innovations aimed at automotive, AI PC and drone applications.

Dividend The board recommends no final dividend, prioritising capital for investment in emerging opportunities.