YNBY International Limited (YNBY INTL) released its unaudited results for the six months ended 30 June 2026, highlighting rapid top-line growth alongside modest earnings expansion and a softer gross margin.
Financial Highlights • Revenue surged 92.3% year-on-year to HK$0.76 billion (1H 2025: HK$0.40 billion), driven by a sharp increase in the trading of goods and commodities. • Gross profit edged up 5.7% to HK$22.51 million; gross margin narrowed to 2.95% from 5.37% a year earlier, reflecting higher cost of sales. • Profit attributable to shareholders rose 13.3% to HK$2.69 million (1H 2025: HK$2.37 million). • Basic EPS declined to 0.030 HK cents (1H 2025: 0.034 HK cents) following a 25.5% expansion in the share base after full conversion of HK$500 million convertible bonds in February 2026. Diluted EPS stood at 0.028 HK cents (1H 2025: 0.027 HK cents). • No interim dividend was declared.
Segment Performance • Trading of goods and commodities contributed HK$0.76 billion in sales and HK$17.48 million in segment profit, up 92% and 4% respectively. • The professional services unit (marketing, product registration, OEM/ODM sourcing) recorded no revenue in the period.
Cost & Expense Dynamics • Selling and distribution costs increased 9.7% to HK$5.43 million, tracking higher sales volumes. • Administrative expenses rose 11.9% to HK$14.17 million, reflecting expanded operating activities. • Finance costs declined 33.5% to HK$0.13 million, largely due to lower lease-related interest charges.
Cash Flow & Balance Sheet • Net cash used in operating activities expanded to HK$22.15 million (1H 2025: HK$5.68 million). • Cash and cash equivalents closed at HK$145.02 million, down from HK$198.01 million at FY25 year-end. • Trade receivables stood at HK$311.94 million; inventories fell to HK$1.91 million. • Bank borrowings of HK$16.16 million were drawn under supplier-finance arrangements, introducing short-term debt where none existed at end-2025. • Net assets were broadly stable at HK$357.19 million (FY25: HK$357.98 million).
Capital Movements • Conversion of the HK$500 million 3% convertible bond issued to controlling shareholder Yunnan Baiyao Group added 1.94 billion new shares on 27 February 2026, lifting total issued shares to 9.54 billion. • The company repurchased 28.55 million shares for HK$6.91 million in June 2026; these remain as treasury shares. Post-period, an additional 81.39 million shares were repurchased for HK$21.72 million, bringing treasury shares to 109.94 million (1.15% of issued capital).
Strategic Developments • A new three-year Framework Agreement signed in March 2026 renews YNBY INTL’s role as general distributor of Yunnan Baiyao Group products outside mainland China, expanding offerings to include the flagship “Yunnan Baiyao” medicine series and personal-care lines. • Management cites supportive PRC policies for Traditional Chinese Medicine and ongoing ASEAN market expansion as key growth drivers.
Outlook The board expects continued opportunities in commodity trading, supply-chain services, and international TCM distribution. Capital structure will be monitored carefully, with short-term bank facilities supplementing working capital and further share repurchases considered subject to market conditions.