WK Group (Holdings) (2535) investor relations material

Executive summary

• H1 2026 revenue fell 47.0% YoY to HK$87.756m; gross profit was HK$1.380m and the period swung to an HK$11.611m net loss from HK$10.8m profit.

• Weaker tendering, slower certification, lower-margin awards and underused factory capacity weighed on results; backlog rose to HK$365.3m across 32 projects at 30 June 2026.

Financial highlights

• Revenue was HK$87.756m versus HK$165.519m; cost of services declined 38.3% to HK$86.376m, less than the revenue decrease.

• Gross profit fell to HK$1.380m from HK$25.577m; gross margin contracted to 1.6% from 15.5%.

• Operating loss was HK$11.422m versus operating profit of HK$13.164m; loss before tax was HK$11.447m versus profit before tax of HK$13.001m.

• Net loss attributable to owners was HK$11.519m; basic and diluted loss per share was HK0.58 cents versus earnings of HK0.54 cents.

• Administrative expenses rose 5.6% to HK$12.8m, mainly due to higher staff and entertainment costs.

Outlook and guidance

• Backlog of HK$365.3m was supported by wins including North District Hospital, Oyster Bay Station and a local university; revenue conversion depends on project execution.

• Expansion into solar panels and prefabricated accommodation and building materials is intended to diversify earnings.

• Management is selectively tendering for work with defensible margins and manageable cash flow, rationalizing costs and aligning factory schedules with project timelines.