Lung Kee (HKG:0255) forecasts its loss will narrow up to HK$5 million in the first half from HK$24 million in the year-ago period, according to a Friday filing with the Hong Kong bourse.

The lower net loss is attributable to higher profit margins due to an increase in selling prices, more machining services and lower purchase prices of raw materials, the filing said.

The mold-based business plans to release H1 results before the end of August.

Shares closed 2% lower on Friday.