Wong’s Kong King International (Holdings) Limited Announces Significant Reduction in Net Loss for FY2025

Key Highlights

• Substantial Reduction in Net Loss: The Group expects to record a consolidated net loss attributable to owners of the Company ranging from HK\$60 million to HK\$70 million for the year ended 31 December 2025, marking a significant decrease of approximately 63.2% to 68.5% compared to the net loss of HK\$190.2 million reported for FY2024.
• Improved Financial Performance: The preliminary assessment is based on unaudited consolidated management accounts. The results have not yet been reviewed by the audit committee or audited by external auditors, and may be subject to amendments.
• Annual Results Announcement: The final audited results for FY2025 are expected to be published around 26 March 2026.

Detailed Analysis of Performance Drivers

1. Trading and Distribution Division:
   • This division recorded a significant increase in turnover for FY2025 compared to FY2024, driven primarily by robust demand from subsidiaries in the PRC and Taiwan.
   • Customers in these markets expanded inventory levels and ramped up capital expenditure, supporting their production capacity expansion plans.
   • Consequently, the division achieved a substantial increase in operating profit for FY2025.
2. OEM Manufacturing Division:
   • Turnover saw a moderate increase in the second half of FY2025 compared to the first half.
   • An unexpected short-term supply chain shortage in Q4 2025 led to a slight decline in annual turnover versus FY2024, but this issue has since been resolved.
   • Despite this, the division reported a significant reduction in operating loss, attributed to an effective operational cost reduction plan and ongoing initiatives to improve efficiency, labor productivity, and reduce indirect overheads.
   • These measures reflect a strategic response to ongoing geopolitical headwinds and global economic volatility.
3. Decrease in Interest Rates:
   • Overall lower interest rates in FY2025 resulted in a material decrease in net financing costs for the Group.

Important Information for Shareholders and Investors

• The expected narrowing of net loss is a key positive development and may be price sensitive, potentially affecting the Company’s share price.
• The improvement is driven by both revenue growth in the Trading and Distribution Division and cost management in the OEM Manufacturing Division, alongside favorable macroeconomic conditions (lower interest rates).
• The Company cautions that these figures are based on unaudited management accounts and are subject to change pending final review and audit.
• Shareholders and potential investors are advised to exercise caution when dealing in the shares of the Company, as the final audited results may differ from the preliminary figures announced.
• The annual results announcement for FY2025 is anticipated to be published around 26 March 2026.

Corporate Governance

The Board comprises a mix of executive and independent non-executive directors. As of the announcement date, the executive directors are Mr. Wong Senta, Ms. Wong Ava (Deputy Chairman & CEO), Ms. Wong Orangeo Wendy, Mr. Chang Jui Shum Victor, and the independent non-executive directors are Mr. Tse Wan Chung Philip, Dr. Leung Kam Fong, Dr. Yip Wai Chun, and Mr. Lam Yiu Wing Andrew.

Conclusion

This profit alert indicates a major turnaround in Wong’s Kong King International (Holdings) Limited’s financial performance, with a substantial reduction in net loss primarily due to increased turnover, effective cost management, and favorable macroeconomic factors. Investors should monitor the Company’s official annual results announcement for further confirmation and details.

Disclaimer: The information provided in this article is based on the Company’s preliminary unaudited accounts and is subject to change pending final audit and review. Investors are advised to exercise caution and refer to the official audited results announcement before making any investment decisions. This article is for informational purposes only and does not constitute investment advice.

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