Zhitong Financial App News, WKK INTL (HOLD) (00532) announced that the Group expects to achieve a consolidated net loss of about HK $54 million in the first half of 2023 and a net profit of HK $44 million in the same period in 2022.
The decline was mainly due to the following factors: a general decline in global economic activity, especially the group's customers in Europe and the United States, which together accounted for a major portion of the group's sales of manufactured goods, the announcement said. These customers reduced their orders to the Group throughout the reporting period, particularly in the second quarter. As a result, the production department incurred operating losses during the reporting period. The global recession also affected customers in the group's trading department, with fewer orders during the reporting period compared with the same period last year. Despite challenging conditions, the trading sector was able to generate an appropriate amount of operating profit during the reporting period. The group's financing costs increased significantly as a result of the increase in interest rates applicable to its bank financing during the reporting period.