According to Zhitong Finance App, WKK INTL (HOLD) (00532) announced that the Group expects to obtain a consolidated net loss of approximately HK$130 million for the year ending December 31, 2023, and a net profit attributable to company owners of HK$72 million compared with 2022.
According to the announcement, the decline was mainly due to the following factors: (i) The general decline in global economic activity, in particular the Group's customers in Europe and the US, together accounted for a major share of the Group's manufactured goods sales. Compared to 2022, these customers received fewer orders from the Group throughout 2023. As a result, the production sector generated a significant operating loss in 2023. (ii) The global economic downturn also affected customers in the Group's trade department, which had a significant reduction in orders in 2023 compared to last year. Despite challenging conditions, the trade sector was able to generate a modest operating profit in 2023. (iii) The Group's financing costs have increased significantly due to the increase in the financing interest rates applicable to its banks in 2023.