Ka Shui International Holdings Limited (Ka Shui Int’l) announced that it expects to report a net loss attributable to shareholders of no more than HK$60.00 million for the six months ended 30 June 2026, widening from the HK$39.40 million loss recorded in the prior-year period.

Management attributes the larger deficit to two principal factors:

1. Competitive pricing pressure: Industry-wide aggressive bidding and tendering compelled the Group to lower prices, limiting the revenue uplift from its higher order book.

2. Margin squeeze: In an uncertain macroeconomic environment, customers demanded price concessions and adjusted order volumes, driving a “significant” short-term decline in gross profit margin.

The company nevertheless expects turnover for 1H 2026 to exceed the year-earlier level.

Strategic focus remains on innovation, with continued investment in research and development of specialized magnesium-alloy formulations and process technologies targeted at AI personal computers, AI data centers, low-altitude aviation platforms and humanoid robotics.

Ka Shui Int’l is finalizing its unaudited interim results, slated for release in late August 2026. The board advises shareholders and potential investors to exercise caution when dealing in the company’s shares.