WKK INTL (HOLD) (00532) has announced that based on a preliminary assessment of its unaudited consolidated management accounts for the six months ending June 30, 2026, the group expects to record a net loss attributable to equity holders of approximately HK$2.3 million for the interim period. This represents a narrowing of about 79% compared to the net loss of HK$11 million reported for the same period in 2025.

Additionally, the group anticipates a consolidated profit after income tax of approximately HK$2.4 million for the interim period, a significant improvement from the consolidated loss after income tax of approximately HK$3.4 million in the 2025 period, reflecting a better operating performance.

The improved financial performance is primarily attributed to the following factors: i. The trading and distribution division achieved a substantial increase in operating profit during the interim period compared to the 2025 period, despite a significant decline in revenue. This strong performance was mainly driven by increased demand for products distributed by the division's subsidiaries in China and Southeast Asia, particularly for equipment used in the manufacturing of multilayer printed circuit boards. Consistent with the key demand drivers observed in 2025, capital expenditure from customers in the circuit board manufacturing and semiconductor industries remained robust during the interim period, supported by investment needs related to artificial intelligence. As a result, sales growth of higher-margin products was sufficient to offset the revenue decline at one of the division's Taiwanese subsidiaries, where purchasing activities slowed as relevant customers had already made higher levels of capital investment in 2025. This performance reflects the division's ability to maintain stable development and further strengthen its competitive advantage.

ii. The original equipment manufacturing (OEM) division achieved a slight increase in revenue during the interim period compared to the 2025 period, primarily due to higher shipment volumes from its manufacturing facilities in Dongguan. This growth was driven by a major OEM customer increasing inventory levels in anticipation of future market demand. Consequently, the division's operating loss for the interim period narrowed further compared to the 2025 period. The improvement was mainly attributed to strategic optimization of the product mix, increasing the proportion of higher-margin orders, and ongoing efforts to enhance operational efficiency, boost productivity, and improve cost management. These measures have helped the OEM division improve profitability and business resilience amid a changing economic environment.