Luxking Group (BKK) H1 2026 earnings summary

Executive summary

• HY2026 revenue fell 5.5% YoY to RMB288.0m, while gross profit rose 13.5% to RMB49.1m and net profit increased 53.5% to RMB5.1m.

• Higher-margin IS tapes and improved production efficiency supported margin expansion; weaker BOPP films sales and soft demand constrained revenue.

Financial highlights

• Revenue was RMB288.0m, down 5.5% YoY; gross profit rose 13.5% to RMB49.1m and gross margin expanded to 17.1% from 14.2%.

• Operating profit increased 19.6% to RMB8.6m; profit before tax rose to RMB7.2m from RMB5.4m and net profit grew 53.5% to RMB5.1m.

• Basic and diluted EPS rose 53.5% YoY to RMB0.4008 from RMB0.2610.

• Other income increased 57.8% to RMB1.0m, mainly from a local government subsidy; administrative expenses rose 19.5% to RMB26.8m, while finance costs fell 25.9% to RMB1.4m.

Outlook and guidance

• 2HFY2026 demand in China and overseas markets is expected to remain weak amid economic uncertainty and fierce competition; BOPP films faces continued headwinds.

• Higher production and operating costs, rising raw-material prices, volatile USD/RMB exchange rates and geopolitical tensions may pressure operations and supply chains.

• IS tapes demand is expected to be stronger, particularly for tailored products; priorities include automotive R&D and bespoke products for smartphone and home-appliance customers.

• Planned actions include product development, machinery upgrades, sales-force expansion and trade-show participation; General tapes will prioritize cost efficiency and customer growth.