YAN PALACE (01497) reported revenue of RMB1.18 billion for the six months ended 30 June 2026, up 16.5% year-on-year. Gross profit rose 20.3% to RMB634.80 million, lifting gross margin to 53.7% from 52.0% a year earlier. Net profit advanced 42.9% to RMB110.70 million, with net margin improving to 9.4% (H1 2025: 7.6%).
\n\nSegment breakdown shows e-commerce channels accounted for 65.2% of total revenue, contributing RMB770.20 million, while offline channels delivered RMB411.70 million (34.8% of total). Pure EBN products generated RMB1.03 billion, up 15.0%, representing 87.2% of total sales. Revenue from “EBN+” and “+EBN” offerings climbed 30.8% to RMB145.19 million, now 12.3% of revenue.
\n\nSelling and distribution expenses grew 21.8% to RMB406.10 million, mainly reflecting higher advertising and promotion outlays alongside performance-linked staff remuneration. Administrative expenses rose 9.9% to RMB73.20 million. R&D spending increased 5.6% to RMB12.00 million as the company intensified product innovation.
\n\nYan Palace’s smart manufacturing initiative contributed to cost efficiencies, aiding the 1.7 percentage-point gross-margin improvement. The company’s Xiamen smart factory completed digital upgrades, earned the Fujian Provincial “Enterprise Technology Center” title and was listed as a “National Green Factory (2025).”
\n\nBalance-sheet strength remained solid: cash and cash equivalents rose 8.6% since year-end to RMB690.86 million. Net current assets stood at RMB495.40 million. The company had no bank borrowings and an unused credit line of RMB172.00 million.
\n\nThe Board recommends an interim dividend of RMB21.7 cents per share (RMB2.17 per ten shares), payable on 24 September 2026 to shareholders on record as of 10 September 2026, subject to approval at the 3 September 2026 EGM.
\n\nLooking ahead, management targets further brand elevation, accelerated R&D for functional “EBN+” products, deeper omni-channel penetration—including interest-based e-commerce and KA retail chains—and continued efficiency gains from its upgraded intelligent manufacturing base.