WKK INTL (HOLD) (00532) Anticipates FY2025 Net Loss Attributable to Shareholders Between HK$60 Million and HK$70 Million, Marking Significant Reduction of Approximately 63.2% to 68.5% Year-on-Year

WKK INTL (HOLD) (00532) announced that the Group expects to record a consolidated net loss attributable to the company's equity holders for the year ending December 31, 2025, in the range of approximately HK$60 million to HK$70 million. This represents a significant narrowing of the loss by approximately 63.2% to 68.5% compared to the consolidated net loss attributable to equity holders of HK$190 million for the year ended December 31, 2024.

Based on available information, the anticipated improvement in financial performance is primarily attributed to the following factors: (1) The Group's Trade and Distribution Division achieved a substantial increase in turnover for the year ending December 31, 2025, compared to the year ended December 31, 2024. This positive development is mainly due to increased demand for products distributed by the division's subsidiaries in Mainland China and Taiwan during 2025, as customers expanded inventory levels and increased capital expenditures to support their capacity expansion plans. Consequently, the Trade and Distribution Division's operating profit for the year ending December 31, 2025, showed significant growth compared to the previous year. (2) The Group's Original Product Manufacturing Division achieved moderate turnover growth in the second half of 2025 compared to the first half. However, an unexpected short-term supply chain constraint in the fourth quarter of 2025, which was subsequently resolved, led to a slight decrease in turnover for the year ending December 31, 2025, compared to the year ended December 31, 2024. Despite this, the Original Product Manufacturing Division's operating loss for the year ending December 31, 2025, was substantially reduced compared to the previous year. This improvement reflects the division's effective implementation of operational cost-reduction plans and ongoing initiatives to enhance operational efficiency, strengthen labor productivity, and lower indirect operating expenses. These measures demonstrate the division's strategic response to persistent geopolitical pressures and global economic volatility during 2025. (3) The overall decline in interest rates during the year ending December 31, 2025, resulted in a significant reduction in the Group's net finance costs compared to the year ended December 31, 2024.