WK Group reported a sharp reversal to a HK$11.52 million loss attributable to shareholders for the six months ended 30 June 2026, compared with a HK$10.83 million profit a year earlier. The downturn was driven by a 47.0% fall in revenue to HK$87.76 million, reflecting a contraction in Hong Kong’s structural-steelwork market and slower project certification progress.

Gross profit plunged 94.6% year on year to HK$1.38 million, compressing the gross margin to 1.6% from 15.5%. Management cited heightened price competition, lower-margin project mix, and under-absorbed fixed overheads from underutilised Mainland fabrication facilities as key factors behind the margin erosion.

Administrative expenses inched up 5.6% to HK$12.75 million, while impairment losses on financial and contract assets narrowed to HK$0.16 million (1H25: HK$0.41 million). Net finance costs fell to HK$25,000, supported by lower bank-borrowing expenses and reduced lease liabilities.

Despite the earnings reversal, liquidity remained solid. Cash and cash equivalents rose to HK$324.20 million (31 December 2025: HK$108.71 million) following receipt of a US$40 million (HK$234.83 million) short-term advance from a director, subsequently repaid in July 2026. Net current assets stood at HK$229.86 million, and the gearing ratio declined to 1.1% (31 December 2025: 2.4%) on reduced lease liabilities. Bank borrowings totalled HK$1.11 million, all Hong Kong-dollar denominated and floating-rate.

Contract backlog expanded to HK$365.28 million at period-end, up 120.8% from HK$165.32 million at 2025 year-end, covering 32 ongoing projects. No interim dividend was declared.

Post-period, control of WK Group shifted on 29 July 2026 when WellLuck Limited acquired a 39.0% stake, becoming the new ultimate shareholder. Management is pursuing cost rationalisation and selective bidding while exploring entry into solar panel and prefabricated building-materials segments to diversify revenue streams.