Ka Shui International Holdings (Ka Shui) reported interim revenue of HK$696.58 million for the six months ended 30 June 2026, a 7.8% year-on-year increase driven mainly by stronger magnesium‐alloy and plastic sales. Despite the top-line growth, profitability weakened sharply:

• Gross profit fell 19.1% to HK$72.13 million, cutting the gross margin to 10.4% from 13.8% a year earlier. • EBITDA dropped 71.1% to HK$5.45 million. • Loss attributable to shareholders widened 37.6% to HK$54.16 million, equal to a basic loss per share of HK 6.06 cents.

Management attributed the margin erosion to intense industry price competition, customer requests for price concessions and lower order volumes, alongside higher production costs.

Segment performance • Magnesium alloy: Revenue rose 19.1% to HK$340.74 million, representing 48.9% of group turnover, but the segment booked a HK$23.61 million loss as aggressive pricing outweighed volume gains. • Plastic products: Sales increased 6.6% to HK$236.22 million; segment profit slipped to HK$4.41 million amid competitive pricing pressure. • Aluminium alloy: Revenue contracted 16.8% to HK$81.52 million, leading to a HK$5.38 million loss on reduced volumes and lower economies of scale. • Zinc alloy: Revenue dipped 8.5% to HK$27.24 million but remained marginally profitable at HK$1.15 million. • Other businesses, including lighting products and vehicle-related services, generated HK$10.86 million, broadly flat year-on-year.

Cash flow and balance-sheet highlights • Cash and restricted deposits totalled HK$235.95 million at end-June, against interest-bearing borrowings of HK$216.21 million, leaving net cash of HK$19.74 million. • Net current assets stood at HK$343.17 million with a current ratio of 1.6. • Total equity was HK$1.15 billion.

Capital management and dividends The board declared no interim dividend, citing the need to preserve liquidity for potential business opportunities. Net operating cash flow and existing bank facilities remain the primary funding sources.

Corporate actions In March 2026 Ka Shui acquired the remaining 40% equity stake in Kamay New Material Technology (Yulin) for RMB14.3 million, making it a wholly owned subsidiary.

Outlook and strategy Management will continue to prioritise R&D in advanced magnesium alloys for applications such as AI PCs, data-centre thermal solutions, new-energy vehicles, low-altitude aviation platforms and humanoid robotics. Operational efficiencies, cost controls and selective market expansion, particularly in North America through the Mexico plant, remain key focus areas.

Other information • No interim dividend declared for the period. • No material contingent liabilities were reported. • Trade receivables of HK$8.93 million are pledged under a factoring arrangement securing HK$10.24 million of bank facilities. • The company has not entered into foreign-exchange hedging contracts but continues to monitor currency exposure.

Ka Shui’s board affirms compliance with Hong Kong’s Corporate Governance Code except for the temporary dual role of Chairman and CEO held by Mr Lee Yuen Fat since December 2024, pending the appointment of a new chief executive officer.