WKK INTL (HOLD) (00532) issues warning of profit warning. It is expected that the company's share of consolidated net loss for the first half of the year will be approximately HK$11 million, a year-on-year decrease of approximately 87% narrowing.

WKK INTL (HOLD)(00532) announced that the group expects to achieve a consolidated net loss attributable to equity holders of the company of approximately HK$11 million in the first half of 2025, representing a decrease of around 87% compared to the previous year. The group also expects to achieve a consolidated profit before tax of approximately HK$12.7 million in the first half of 2025, a significant improvement compared to the consolidated loss before tax of HK$70.9 million in the same period in 2024. The announcement stated that the expected improvement in financial performance is primarily attributed to the following factors: - The group's trading and distribution segment saw a significant increase in revenue during the interim period compared to the same period in 2024. This positive development was mainly driven by increased demand for products distributed by the group's subsidiaries in Taiwan and mainland China, due to customers expanding inventory levels and increasing capital expenditure. As a result, the operating profit of the trading and distribution segment during the interim period showed considerable growth compared to the same period in 2024. - The group's original product manufacturing segment significantly reduced its operating loss during the interim period compared to the same period in 2024, despite a slight decrease in revenue. This improvement reflects the effective implementation of cost reduction measures and continuous improvement in operational efficiency by the segment. These efforts underscore the strategic response of the segment to ongoing geopolitical pressures and global economic uncertainties. The overall decrease in interest rates during the interim period resulted in a significant reduction in the group's net financing costs compared to the same period in 2024.