YNBY International Limited released its unaudited interim results for the six months ended 30 June 2026, highlighting strong top-line growth but margin pressure and share-count dilution.
Revenue and Earnings • Revenue surged 92.34% year on year to HK$762.54 million (H1 2025: HK$396.44 million), driven entirely by the trading of goods and commodities segment. • Profit attributable to shareholders rose 13.31% to HK$2.69 million (H1 2025: HK$2.37 million). • Gross profit edged up 5.67% to HK$22.51 million, while gross margin narrowed to 2.95% from 5.37%, reflecting higher cost of sales. • Basic EPS fell to 0.030 HK cents from 0.034 HK cents due to an enlarged share base following full conversion of the HK$500 million convertible bond on 27 February 2026. Diluted EPS was 0.028 HK cents (H1 2025: 0.027 HK cents).
Segment Performance • Trading of goods and commodities contributed 100% of revenue and generated segment profit of HK$17.48 million (H1 2025: HK$16.75 million), supported by expanded e-commerce, general trading and raw material sales. • The Group’s professional services unit (marketing, product registration, OEM/ODM sourcing) recorded no revenue during the period.
Cost Structure and Margins • Cost of sales increased to HK$740.02 million, up 97.3% year on year. • Selling and distribution costs rose 9.71% to HK$5.43 million; administrative expenses increased 11.90% to HK$14.17 million. • Finance costs declined 33.53% to HK$0.13 million, reflecting lower interest on lease liabilities.
Balance Sheet and Liquidity • Total assets fell 19.32% to HK$478.13 million, mainly due to lower cash and trade receivables after settlement of payables. • Cash and cash equivalents stood at HK$145.02 million; short-term bank borrowings amounted to HK$16.16 million, leaving the Group in a net cash position of HK$128.86 million and a nil gearing ratio. • Net assets were broadly stable at HK$357.19 million (31 Dec 2025: HK$357.98 million).
Capital Movements • The February 2026 conversion of the 2020-issued HK$500 million convertible bond added 1.94 billion shares, lifting total issued shares to 9.54 billion. • During H1 2026 the Company repurchased 28.55 million shares for HK$6.91 million; an additional 81.39 million shares were repurchased in early July for HK$21.72 million.
Cash Deployment of Recent Placings • Of the HK$100 million net proceeds from the 2022 placing, HK$2 million remains unspent, earmarked for R&D and trading-network expansion. • Of the HK$92 million net raised in the May 2025 placing, HK$73 million is unutilised, mainly allocated to ASEAN product registration, marketing and working-capital needs, with deployment now expected by year-end 2027.
Outlook and Strategy YNBY International will continue to leverage the renewed 2026 Framework Agreement with parent Yunnan Baiyao Group to distribute “Yunnan Baiyao” branded products overseas while expanding its healthcare raw-materials trading. Management expects China’s supportive Traditional Chinese Medicine policies and its own established e-commerce channels to underpin further growth.
Dividend The Board declared no interim dividend for H1 2026, consistent with the prior-year period.