TK GROUP HLDG (02283) has announced its interim results for the six months ended June 30, 2026. The group recorded revenue of HK$1.156 billion, a year-on-year increase of 10.11%. However, profit for the period amounted to HK$21.91 million, reflecting a sharp decline of 74.75% compared to the prior year.

Basic earnings per share stood at 2.6 HK cents, with an interim dividend of 1.1 HK cents per share proposed. According to the company's announcement, the gross profit margin for the period was 17.4%, down 7.9 percentage points from 25.3% in the same period last year.

The decline in profitability was primarily attributed to the fact that most of the group's new projects are still in the development and trial production stages. There is a considerable lead time from research and development to full-scale mass production, and the upfront cost investments are relatively concentrated, which exerted pressure on earnings during the period. Additionally, the semiconductor shortage has led to frequent adjustments in customer production plans, placing short-term strain on production efficiency and gross margins.