Ongoing Industry Cyclical Volatility Continues to Weigh on Financial Results Technological 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, the Group successfully commercialised the world’s first 16,000T ultra-large intelligent die-casting unit, setting a new industry benchmark for ultra-large tonnage die-casting equipment applications; at the same time, the Group continues to secure and deliver multiple 9000T-class ultra-large die casting machines. The Group’s 6,000T–16,000T ultra-large intelligent die-casting cells, which deeply integrate digital twin technology with the LK-NET cloud die-casting management system, were selected as one of the “Outstanding Cases of New Quality Productive Forces in the Automotive Industry 2025”. These solutions are fully compatible with the mass production requirements for full vehicle body structural components of automobile manufacturers. As at the end of the Year, the Group continued to rank first in the industry globally in terms of the cumulative number of ultra-large die-casting machines delivered, solidifying its leading position.
In the field of magnesium alloy forming technology, the Group’s TPI semi-solid magnesium alloy forming technology has formed a full-scale product matrix covering everything from small precision parts to ultra-large structural parts. It also supports modular transformation of traditional die-casting equipment, enabling a 50% reduction in energy consumption and a 20% increase in product toughness, thereby providing critical support for the commercialisation of magnesium alloys application. During the Year, the Group’s self-developed 5,000-tonne TPI semi-solid forming module successfully secured an order from a leading OEM for the production of inner tailgate panels for new energy vehicles. By integrating into a single component the functions that previously required nine separate sheet metal parts to form the inner tailgate panels, the equipment achieves a 45% reduction in weight and increases material utilisation to 70%, effectively balancing lightweighting and cost control.
The Group’s TPI semi-solid forming technology, leveraging unique process advantages, offers customers a better technical route for magnesium alloy die casting equipment layout; its modular upgrade solution also provides existing industry customers with a practical pathway to rapidly adopt magnesium alloy technology. Benefiting from this, orders for the Group’s TPI magnesium alloy equipment continued to grow strongly, with shipment value exceeding RMB100 million. Revenue generated from the related business increased by 291.1% in the second half of the financial year as compared with the first half of the financial year.
In the field of advanced materials and special casting, the Group’s self-developed zirconium-based amorphous alloy die casting equipment integrates vacuum melting, automatic solid material feeding and full-process automation into a single system. Having reached internationally advanced standards in technical performance, this equipment addresses a key gap in the domestic equipment market. This equipment can be used for large-scale production of high-end products such as foldable screen hinges and medical implants. In expanding its portfolio of special casting equipment, the Group’s low-pressure die-casting machines feature innovative inert gas pressurisation and waste heat recovery technologies, reducing overall energy consumption by 30%. These machines are now widely used in the manufacture of products such as automotive wheels and motor end covers. The horizontal extrusion casting machine is equipped with a dual pressure and speed control system, meeting the production requirements for high-performance components such as automotive steering knuckles, subframes, and battery end plates.
In the field of high-end intelligent machining and industrial big data, the Group has developed an integrated intelligent machining system in response to industry challenges associated with the post-processing of large die-cast components. The system’s local data processing rate exceeds 90% and it achieves an accuracy rate of over 95% in predicting machining abnormalities. Its key technical performance indicators have reached internationally advanced standards. The technology has completed engineering validation on five-axis gantry machining centres and post-processing equipment for large die-cast components, and forms a more competitive, integrated intelligent manufacturing solution. Additionally, the Group successfully overcame technical challenges in the high-precision forming process for hydraulic valves, further enhancing its in-house capabilities in the supply of core components. On the other hand, leveraging digital twin technology, the Group developed intelligent die-casting cells capable of intelligent prediction of process parameters, remote equipment diagnostics and digitalised management and control throughout the entire production process.
Further Advancement in Strategic Layout and Sustained Improvement in Operational Efficiency
Diversified Track Strategy: To effectively respond to cyclical fluctuations in the traditional automotive industry, the Group proactively adjusted its business structure. On the basis of deepening its presence in the new energy vehicle track to consolidate its core foundation, it comprehensively laid out new productivity tracks such as energy storage, AI computing power, humanoid robots, and specialised casting, thereby achieving diversified expansion of customer structure and application scenarios.
Global Expansion Strategy: The Group’s “going global” strategy proved highly effective over the year, and it has successfully built a development framework that combines “high-end breakthroughs in Europe and the US” with “deep cultivation of emerging markets”. In particular, revenue from Europe surged by 64.4% year-on-year, benefitting from robust demand for new energy equipment and high-end manufacturing. The Group also successfully secured a high-end equipment order from a well-known European vehicle enterprise, breaking the long-standing market barrier that made it difficult for Chinese companies to enter the supply chains of mainstream European and American vehicle enterprises. Driven by the ongoing industrial relocation, revenue from other emerging markets and the Asia-Pacific region increased by 76.9% year-on year as orders grew rapidly. The localised sales and service network now covers countries such as Thailand, Vietnam, and Malaysia. Although revenue from the North American market declined year-on-year, the Group’s diversified global market presence effectively mitigated the impact of fluctuations in any single regional market.
Reducing Costs and Improving Efficiency Strategy: The Group has continuously optimised its production layout and advanced the digitalisation of its supply chain. It has also been advancing in-house R&D and production of core components in a systematic manner, complemented by long-standing and stable relationships with upstream suppliers and centralised procurement of bulk raw materials to mitigate cost volatility. Meanwhile, the Group will steadily upgrade its manufacturing facilities with intelligent production lines, further reinforcing its cost-reduction foundation from the production side.
Mr. Liu Zhuo Ming, Chief Executive Officer of L.K. Technology Holdings Limited stated, “Looking back over the past year, we see that the global equipment manufacturing industry was undergoing structural adjustment. Although earnings are under significant pressure, the Group’s leading position remains secure. As at the end of the Year, the Group continued to rank first in the industry globally in terms of the cumulative number of ultra-large die-casting machines delivered, underpinning a solid competitive foundation. Looking ahead, the Group will leverage technological strengths as a strategic anchor against cyclical headwinds, drive deep breakthroughs across multiple fronts, and position itself to emerge stronger from the cycle. Going forward, the Group remains committed to a strategy of technology leadership, capitalising on market opportunities while deepening the Group’s global presence and making a comprehensive push into diverse sectors such as energy storage, photovoltaics, robotics, and computing power cooling. In addition, the Group is building a smart service system centred on ‘AI + Equipment’, adhering to a dual-track approach driven by both customised and forward-looking R&D, with the goal of becoming our customers’ ‘full-lifecycle value partner’ and delivering sustainable, substantial returns to shareholders and investors.”
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About L.K. Technology Holdings Limited (Stock Code: 558.HK)
L.K. Technology Holdings Limited is one of the world’s largest die-casting machine manufacturers. The Group engages in the design, manufacture and sales of three product lines, namely die-casting machines, plastic injection moulding machines and computerised numerical controlled (CNC) machining centres. Its products are widely used in automotive bodies and accessories, household appliances, accessories and electronic products. The Group has 15 manufacturing bases and 60 sales and service centers worldwide.
The Group owns Idra, a world-class precision machinery brand, which has developed the world’s first Giga Press ultra-large die-casting equipment that provides integrated die-casting technology – a solution adopted by leading global new energy vehicle manufacturers. To capture overseas markets, the Group has established sales and service companies in the United States and India. The Group also operates a casting factory in Fuxin, China, for the production of cast iron/steel components, thereby strengthening upstream and downstream synergies.
www.jollibeegroup.com
