Wong’s Kong King International (WKK) Interim 2026: Revenue Contracts 7.2%, Net Loss Narrows, Comprehensive Income Turns Positive

Bulletin Express
09/30

Wong’s Kong King International (WKK) released its unaudited results for the six months ended 30 June 2026.

Financial Highlights • Revenue declined 7.2% year-on-year to HK$1.69 billion. • Loss attributable to owners narrowed to HK$2.34 million from HK$11.04 million a year earlier. • Total comprehensive income attributable to owners swung to a gain of HK$136.48 million (1H 2025: loss of HK$19.07 million), lifted by HK$113.09 million fair-value gains on equity investments and HK$25.73 million currency translation gains. • Operating profit rose to HK$39.44 million (1H 2025: HK$12.78 million). • Net finance costs were broadly stable at HK$11.91 million. • Basic and diluted loss per share improved to HK$0.0032. • No interim dividend was declared.

Segment Performance Trading & Distribution – Revenue: HK$770.73 million, down 16.8%. – Operating profit: HK$78.52 million, up 13.7%, supported by demand for multilayer PCB equipment in Mainland China and Southeast Asia.

OEM Manufacturing – Revenue: HK$914.05 million, up 4.3%. – Operating loss reduced 28.4% to HK$41.85 million, reflecting product-mix optimisation and cost controls.

Balance Sheet and Cash Flow • Cash and cash equivalents increased to HK$646.58 million; short-term deposits stood at HK$86.14 million. • Net cash position reached HK$79.10 million versus net debt of HK$50.40 million at 31 December 2025. • Financial assets at FVOCI rose to HK$213.68 million (31 December 2025: HK$55.77 million) after an investee’s listing generated HK$142.60 million of fair-value gains. • Bank borrowings edged down to HK$596.07 million, while committed facilities totalled HK$2.60 billion. • Capital expenditure was HK$2.67 million; contracted commitments stood at HK$0.14 million. • Gearing was effectively nil due to the net cash position.

Operational Developments • Voluntary liquidation of Dongguan Nissin Plastic Products Co., Ltd. was completed in June 2026. • On 25 August 2026, 60%-owned Taiwan Kong King Co., Ltd. agreed to acquire land in Taiwan for NTD360.00 million (approximately HK$90.00 million) to support future operations.

Governance and Management Changes • Founder Mr Wong Senta became Honorary Chairman and was re-designated as Non-executive Director on 3 August 2026. • Executive Director Mr Chang Jui Shum Victor resigned on 21 March 2026. • The 2016 Share Option Scheme expired on 21 June 2026; 29.25 million previously granted options remain outstanding.

Outlook Management expects steady demand in Trading & Distribution and continued profitability improvements in OEM Manufacturing through operational efficiencies and disciplined cost management during the second half of 2026. No guidance on dividends was provided.

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