Lee Kee Holdings Limited (LEE KEE) reported a return to profitability for the year ended 31 March 2026, reversing the prior-year loss on the back of an improved product mix and disciplined cost control despite a softer revenue line.
Key financials • Revenue: HK$1.97 billion, down 4.10% year on year, mirroring a 4.9% decline in sales volume to 80,910 tonnes. • Gross profit: HK$100.53 million, +23.73%; gross margin expanded 110 bps to 5.1%. • Net profit: HK$5.91 million versus a HK$36.22 million loss in FY2025. • Basic EPS: HK0.69 cent (FY2025: loss of HK4.36 cents). • Other net gains: HK$11.41 million (FY2025: loss of HK$12.62 million), supported by disposal gains and favourable FX movements. • Finance costs fell 47.0% to HK$0.76 million, lifting net finance income to HK$1.17 million. • No final dividend declared.
Segment performance • Chinese Mainland: Revenue HK$1.15 billion; segment profit HK$21.62 million. • Hong Kong: Revenue HK$0.82 billion; segment loss HK$40.22 million. Combined segment result before other income, gains and finance items was a loss of HK$18.59 million.
Balance sheet and liquidity • Cash and cash equivalents: HK$232.79 million (up HK$13.13 million). • Bank borrowings: HK$11.29 million; gearing ratio at 2.06%. • Net assets: HK$789.04 million; current ratio: 16.78 times.
Operational highlights • Higher margin contribution from own-brand alloys (e.g., Mastercast, Genesis) and expansion of technical consultancy and testing services lifted earnings quality. • Zinc prices fluctuated between US$2,541 and US$3,394 per tonne during the year, ending at approximately US$3,220. • Headcount trimmed to about 170 employees (2025: 190), keeping staff costs flat at HK$66.49 million.
Outlook Management plans to deepen value-added alloy solutions, grow technical consultancy revenues, and expand in Southeast Asia amid an uncertain global economic backdrop. Sustained investment in R&D, AI-driven process optimisation and strengthened supply-chain capabilities are expected to underpin long-term growth while the company maintains a conservative financial posture.