Luxking Group (BKK) H2 2025 earnings summary

Executive summary

• FY2025 revenue rose 3.0% YoY to RMB570.1m, while net profit fell 24.9% to RMB7.8m amid higher selling, administrative and finance costs.

• General tapes drove growth; BOPP films weakened. Management expects a challenging FY2026 and plans continued R&D, capacity investment and sales-force expansion.

Financial highlights

• Revenue was RMB570.1m vs RMB553.5m in FY2024; gross profit increased 5.3% to RMB89.8m and net profit declined to RMB7.8m from RMB10.3m.

• Profit before tax was RMB11.4m vs RMB15.2m; basic and diluted EPS was RMB0.6131 vs RMB0.8166.

• Selling and distribution costs increased 9.8% to RMB27.9m; administrative expenses rose 18.2% to RMB47.8m, including higher R&D and workforce costs.

• Finance costs rose 13.8% to RMB4.5m as average borrowings increased; income tax expense fell 24.0% to RMB3.7m.

Outlook and guidance

• FY2026 outlook is cautious: slower economic growth, trade tensions and USD/RMB fluctuations may pressure demand and raise operating, production and raw-material costs.

• Priorities include developing customer-specific products, upgrading machinery, improving efficiency, expanding sales teams and participating in trade shows.

• BOPP competition is expected to remain stiff, with weaker H2 FY2025 demand likely to continue; sales mix will be adjusted and standard films prioritised for efficiency.

• IS-tape demand is expected to strengthen, with R&D focused on automotive, smartphone and home-appliance applications; General tapes plans more tailor-made products.

• FY2026 plans include installing peripheral facilities at Hubei and adding two adhesive coating lines plus replacement equipment at Zhongshan.