Luxking Group (BKK) H2 2026 earnings summary

Executive summary

• FY2026 revenue declined 2.6% to RMB555.6m as weaker BOPP film sales outweighed growth in industrial specialty tapes; gross profit rose 1.0% to RMB90.7m.

• Net profit fell 63.7% to RMB2.8m, primarily due to RMB5.9m withholding tax on an intercompany dividend distribution.

Financial highlights

• Revenue was RMB555.6m versus RMB570.1m in FY2025; profit before tax was RMB12.6m versus RMB11.4m.

• Gross profit increased to RMB90.7m from RMB89.8m; gross margin rose to 16.3% from 15.8%.

• Net profit was RMB2.8m versus RMB7.8m; basic and diluted EPS was RMB0.2228 versus RMB0.6131.

• Other income and gains rose to RMB3.8m from RMB2.0m, including a Hubei manufacturing subsidy and a reversal of receivables impairment.

Outlook and guidance

• FY2027 outlook is cautious, with persistent demand weakness expected across China and overseas markets, alongside higher production, operating and raw-material costs and USD/RMB volatility.

• BOPP films are expected to face packaging-sector headwinds and elevated competition; sales mix will remain flexible in response to market conditions.

• Industrial specialty tapes have a more favorable demand outlook, especially customized products; priorities include automotive R&D and stronger smartphone and home-appliance offerings.

• Planned priorities include machinery upgrades, product R&D, customer-base expansion, trade-show participation and strengthening sales teams.