Luxking Group (BKK) H1 2024 earnings summary

Executive summary

• HY2024 revenue rose 10.3% YoY to RMB290.7m as demand conditions improved; gross profit increased 59.8% to RMB49.3m and net profit was RMB13.6m versus a RMB2.5m loss.

• Results were in line with profit guidance issued on 19 January 2024.

Financial highlights

• Revenue was RMB290.661m vs RMB263.521m; gross profit was RMB49.312m vs RMB30.861m for the six months ended 31 December 2023 and 2022, respectively.

• Net profit was RMB13.643m, reversing a RMB2.519m net loss; income tax expense was RMB1.871m vs RMB1.703m.

• Selling and distribution costs rose 10.4% to RMB12.2m; administrative expenses were stable at RMB19.1m, while other operating expenses increased to RMB0.6m.

Outlook and guidance

• 2H2024 outlook remains cautious, with cost pressures, higher raw material prices, potential supply-chain dislocation and geopolitical uncertainty affecting overseas markets.

• Priorities include product R&D and customisation, customer engagement, network expansion, and efficiency gains through equipment investment and upgrades.

• IS tape trial production at the Hubei plant is expected to begin in FY2025; two new Zhongshan coating lines are expected to be installed in 2H2024.