DLK Advisory Limited Yip’s Chemical Announces 2026 Interim Results, Navigating Macro Challenges Successfully with an Optimised Business Portfolio; Profit Attributable to Owners Increased Significantly by 113.5% to HK$141
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【For Immediate Release】 Yip’s Chemical Announces 2026 Interim Results Navigating Macro Challenges Successfully with an Optimised Business Portfolio Profit Attributable to Owners Increased Significantly by 113.5% to HK$141 million Interim Dividend of HK8 Cents per Share Highlights:
(Hong Kong, 20 August 2026) Yip’s Chemical Holdings Limited (SEHK: 00408) (“Yip’s Chemical” or the “Company”, together with its subsidiaries collectively referred to as the “Group”) todayannounced its interim results for the six months ended 30 June 2026 (the “period under review”). During the period under review, the US-Iran conflict triggered significant volatility in international oil prices, causing unusual fluctuations in the prices of certain related chemical raw materials and leading to a major impact on the global supply chain and macroeconomy. Moreover, as the “involution” across various industries in the Chinese Mainland continued, both prices and profits faced downward pressure. Relying on a continuously optimised business portfolio and a solid core business foundation, the Group demonstrated strong operational resilience, successfully overcoming these challenges to achieve substantial profit growth. In the first half of 2026, the Group recorded revenue of HK$1.67 billion, an increase of 17.1% compared to the corresponding period of the preceding year. Profit attributable to owners surged significantly by 113.5% year-on-year to HK$141 million. The Group’s overall financial position remained highly robust during the period under review, with the gearing ratio maintained at healthy level of 19.6%. The Board has resolved to pay an interim dividend of HK8 cents per share (2025 interim dividend: HK4 cents per share), to reward shareholders earnestly. Mr. Ip Chi Shing, Chairman of Yip’s Chemical, expressed, “Although the macroeconomic environment in the second half of the year remains full of uncertainties, I am confident that through the efforts of our young and talented management team, the Group will demonstrate greater agility to further consolidate our foundation in line with our business development strategies, while investing heavily to build “a leading chemical businesses platform”. In advancing eco-friendly and new energy-related products, we will proactively pursue opportunities in strategic cooperation and M&A initiatives, forging a new path for the long-term, healthy, and sustainable development of Yip’s Chemical. Concurrently, spearheaded by the newly commissioned Vietnam coatings plant, the Group will gradually explore avenues to expand its product footprint overseas. As long as we firmly adhere to this prudent yet progressive strategy, persist in our approach and deliver concrete action, we are bound to unlock greater business prospects for the Group’s future.” Chairman Ip added,“This year marks our 55th anniversary. While the world has transformed over the past half-century, our dedication to our core businesses, employees, shareholders, and society remains unwavering. Thanks to the steadfast support of our staff, customers, and partners, Yip’s Chemical has grown from a small family workshop into an enterprise listed for 35 years. I would like to take this opportunity to express my heartfelt gratitude to all colleagues and business partners. Looking ahead, with your continued trust and support, Yip’s Chemical is poised for even greater growth.” Business Review and Outlook Inks In the period under review, the inks business recorded revenue of HK$704 million, representing a year-on-year increase of 19%. Despite fierce market competition, the inks business successfully captured market share through highly cost-effective products and services, driving a 16.5% year-on-year growth in sales volume to 33,000 metric tonnes, firmly securing its leading position in the Chinese inks market.Although the business faced rising prices of raw materials such as solvents during the period under review, effective cost control and strategic price increases on select products enabled the gross profit margin to improve by 0.5 percentage point year-on-year to 21.4%.Furthermore, owing to a relatively large bad debt provision made in the corresponding period of the preceding year, the inks business recorded a substantial year-on-year increase of 265% in segment results, reaching HK$41.3 million. Going forward, the Group will continue to leverage its competitive edge in the packaging printing inks sector to expand market share and consolidate the market leadership of “Bauhinia Variegata” inks. Simultaneously, the management team has commenced identifying acquisition targets in the ink sector with high technical barriers, aiming to diversify its product portfolio and create new growth pillars for the inks business. Coatings During the period under review, the architectural coatings sector continued to be affected by the sluggish domestic real estate market, dragging down the overall sales volume of the coatings business by 8.0% to 72,000 metric tonnes, while revenue grew by 2% to HK$688 million. The Group is steadily expanding the distributor networks for the “Bauhinia” and “Camel” brands and stepped up promotional efforts across multiple social media platforms to pave the way for the future recovery of the architectural coatings market. In industrial coatings, the Group increased investments in the plastic coatings and resins businesses to drive future development. The new industrial coatings plant in Vietnam has commenced operations, providing timely and efficient services to local customers. Concurrently, the resins business continued to focus on R&D for products related to automotive coatings and protective coatings to boost sales and profits. The coatings segment recorded a gross profit margin of 29.9%, representing a year-on-year increase of 1.1 percentage points, with segment results rose by 2% to HK$22.0 million. In the second half of the year, building on the steady organic growth of its businesses, the Group will actively seek high-quality, technologically advanced M&A targets. Concurrently, it will accelerate the incubation of coatings technologies related to the new energy industry to expedite the development pace of the coatings business. Lubricants In the period under review, revenue from the lubricants business declined by 11% to HK$143 million, while the gross profit margin rose by 0.5 percentage point year-on-year to 22.4%. This business recorded segment results of HK$6.1 million, remaining flat compared to the corresponding period of the preceding year. The automotive lubricants business was impacted by the overall market “involution”, which pressured both revenue and profits. Looking ahead, the Group will optimise its automotive lubricants portfolio to drive sales volume growth, while prudently investing in niche industrial lubricants to unlock new growth engines. Chemical Gas Separation and Recovery In December 2025, the Group successfully completed the acquisition of an approximately 60% equity interest in Sino-Hypro, signifying Yip’s Chemical’s entry into the chemical gas separation and recovery industry. During the period under review, the Group commenced providing Sino-Hypro with support in terms of customer resources, supply chain capabilities, human capital and management systems. Sino-Hypro recorded revenue of HK$136 million and a gross profit margin of 45.6% in the period under review, contributing segment results of HK$28.0 million (before deducting non-controlling interests and taxation) to the Group. The Group’s management will continue to work closely with the original shareholders to fully leverage the strong technological foundation of Sino-Hypro and the extensive operating experience and resource network of Yip’s Chemical. The Group firmly believe that Sino-Hypro will continue to unleash strong commercial potential and stride towards a promising future. Investment in Solvents Associate The Group retains a 24% effective stake in “Handsome Chemical”, the world’s largest acetate solvents company. In the period under review, the solvents associate recorded robust growth of 36.9% in sales volume, reaching a record high of 1,130,000 metric tonnes. In particular, export sales volume reached approximately 500,000 metric tonnes, serving as the primary growth engine. Despite significant price volatility in both raw materials and solvent products triggered by the US-Iran conflict, the management team accurately seized market opportunities to drive profitability. The solvents associate ultimately delivered a return of HK$112 million to the Group. Navigating through macroeconomic and geopolitical uncertainties in the second half of the year, the Group remains confident that under the effective leadership of the associate’s management team and in close collaboration with its business partners “PAG” and “Qisheng”, the solvents business will continue to demonstrate resilience and adaptability to maintain a prosperous trajectory. Mr. Ip Kwan, Francis, Chief Executive Officer of Yip’s Chemical, concluded, “During the period under review, in the face of a challenging market environment, the Group continued to effectively consolidate the market position of its core businesses, achieving high-quality revenue and profit growth. Meanwhile, the new chemical gas separation and recovery business has begun to contribute to the Group’s performance. Looking ahead, the management will continue to actively seek strategic investment and M&A opportunities in the market that align with Yip’s Chemical’s future development, including opportunities to consolidate the core businesses of coatings and inks, in order to accelerate the development of “a leading development platform for chemical businesses”. I am confident that adhering to these development strategies will strengthen our business foundation and drive the Group towards a successful future.”
About Yip’s Chemical Holdings Limited (Incorporated in the Cayman Islands with limited liability) Founded in 1971 and listed on the Hong Kong Stock Exchange (SEHK: 00408) since 1991, Yip’s Chemical has been dedicated to the chemical industry for more than half a century.The Group’s long-term vision is to become “a leading development platform for chemical businesses” driven by green, innovative technology, professional services and highly respected brands that enrich people’s lives. The Group’s core businesses include inks, industrial and architectural coatings, specialty resins, lubricants and chemical gas separation and recovery. The core businesses have established leading positions in China in their respective sectors. “Bauhinia Variegata” is the largest inks manufacturer in China; “Hang Cheung” coatings holds a leading position in China’s high-end plastic coatings segment; Bauhinia Advanced Materials Group also operates well-known brands including “Bauhinia” and “Camel” paints as well as “Da Chang” polymers; “Hercules” and “Pacoil” lubricants rank among the market leaders; “Sino-Hypro” is recognised as a leading enterprise in chemical gas separation and recovery in China. The Group is also a core investor in “Handsome Chemical”, the world’s largest acetate solvents producer. Leveraging its stable shareholder structure, extensive nationwide manufacturing and sales network, and a dynamic portfolio of strong brands, the Group has built a robust foundation in the domestic chemical industry. Going forward, the Group will drive sustainable innovation in chemical operations and accelerate the development of a more scalable and resilient platform. Learn more about Yip’s Chemical on: www.yipschemical.com Media and Investor Enquiries Yip’s Chemical Holdings Limited DLK Advisory Limited Ms. Michelle ShiTel: (852) 2854 8711Email: michelleshi@dlkadvisory.com File: 408_2026IR_Press Release_EN Final_2026.8.20
20/08/2026 Dissemination of a Financial Press Release, transmitted by EQS News. |