WK Group (Holdings) (2535) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 12.7% YoY to HK$347.7 million; profit for the year declined 48.9% to HK$16.1 million as competitive tendering reduced gross margins.

• Basic EPS was HK0.8 cents, versus HK1.7 cents in FY2024; no final dividend was recommended.

Financial highlights

• Revenue was HK$347.7 million, down HK$50.7 million or 12.7% YoY; cost of services fell 7.9% to HK$301.1 million.

• Gross profit decreased 34.6% to HK$46.7 million from HK$71.4 million; profit before tax was HK$19.7 million versus HK$39.6 million.

• Profit for the year was HK$16.1 million, down 48.9% YoY from HK$31.5 million; basic and diluted EPS were HK0.8 cents.

• Administrative expenses increased 2.6% to HK$27.2 million; finance costs declined to HK$0.4 million from HK$0.6 million.

Outlook and guidance

• Public infrastructure, including transport hubs, hospitals, civil works and Northern Metropolis development, is expected to support a stable pipeline despite private property market volatility.

• Maintaining operational continuity and technical expertise is intended to position the business to pursue higher-value opportunities as the economic cycle turns.

• Subsidiaries were established to enter solar panels and prefabricated accommodation and building materials; opportunities in these markets will continue to be explored.