Ongoing Industry Cyclical Volatility Continues to Weigh on Financial ResultsTechnological Certainty as a Hedge against Cyclical Headwinds HONG KONG SAR - Media OutReach Newswire - 1 July 2026 - L.K. Technology Holdings Limited (Stock code: 558, the "LK TECH", and together with its subsidiaries, the "Group") announces the annual results for the twelve months ended 31 March, 2026 (the "Year"). During the Year, although the lightweighting and integrated die-casting technology trends in new energy vehicles continued to accelerate and the policy dividends from large-scale equipment renewal were released, the intelligent equipment manufacturing industry in which the Group operates underwent a cyclical adjustment, with demand-side pressures being particularly pronounced. These included downward pressure on new orders for large and extra-large die-casting equipment, as downstream vehicle enterprises faced slowing retail sales growth and tightened capital expenditures; intensifying competition in the traditional mature sectors, which weakened the growth momentum of orders for small and medium-sized die-casting equipment; and the strain arising from multiple strategic technology investments made in advance during the Year and timing differences in revenue recognition for certain orders. As a result, the Group's overall performance for the Year came under significant strain. During the Year, the revenue amounted to HK$5,609 million; gross profit amounted to HK$1,375 million, with gross margin at 24.5%; net profit was adjusted to HK$49.5 million, with a net profit margin of 0.9%. During the Year, the Group maintained a solid financial position, with total assets of HK$13.3 billion, representing a year-on-year increase of 11.2%, and net cash of HK$1.32 billion. Deep Synergy and Complementary Empowerment across the Three Core Businesses The Group has three major business segments: die-casting, which handles metal blank forming; injection molding, which enables plastic part forming; and CNC machining centre, which performs high-precision finishing. Together, they cover the key processes of the entire precision forming industry chain. Despite the challenging market environment, the Group adheres to a technology‑led and market-first approach, upholding its core strategies of technology leadership and global expansion. With deep synergy among the three businesses, the Group's leading industry position and competitive foundation remain solid. The die-casting machinery business is the Group's core business, with automotive vehicles industries continuing to be the primary revenue source for this sector. However, during the Year, the sector's performance came under significant pressure due to weak downstream demand, industry competition that squeezed revenue, and the multiple effects of various strategic investments made in advance. Die-casting machinery business's revenue for the Year amounted to HK$3,663 million, accounting for 65.3% of the Group's total revenue. The injection molding segment generated revenue of HK$1,798 million during the Year, representing 32.1% of the Group's total revenue, while its business achieved diversified growth breakthroughs. Notably, revenue from the toy industry achieved growth of over 55% for the second consecutive year, with its revenue contribution increasing to 16.7%, making it the second-largest application sector. The segment also achieved a three-year compound annual growth rate of 38.7%, demonstrating the Group's strong ability to capture opportunities in high-growth industries and the competitiveness of its products. Revenue from the CNC machining centre business amounted to HK$148 million, representing 2.6% of total revenue. Dual Leadership in Delivery and Product, Deepening Core Advantages The Group's key industry clients are currently undergoing cyclical structural adjustments, which is further driving the competitive landscape toward consolidation among leading enterprises that possess technological barriers, economies of scale, and comprehensive full-lifecycle service capabilities. Simultaneously, higher requirements are being placed on equipment products, which must be highly precise, intelligent and suited to lightweight manufacturing processes. Therefore, the Group remains committed to technology-driven development, focusing on core technological breakthroughs and capacity building across the entire industry chain. Its research and development (R&D) investment continues to maintain high intensity, high precision, with R&D expenses reaching HK$318 million during the Year, representing a year-on-year increase of 24.6%. This effectively constructs a technological moat and provides strong support for the expansion of its product markets. In the core field of ultra-large integrated die-casting, the Group continues to deepen its strategic cooperation with leading automobile manufacturers and suppliers, empowering the new energy vehicle industry. During the Year,...