YUES INTL HLDG Interim 2026: Revenue Slides 19%, Net Loss Deepens; Logistics Weakness Offset by TCM Push

Bulletin Express
Sep 17

Yues International Holdings Group Limited reported interim results for the six months ended 30 June 2026 showing a sharp fall in core logistics revenue and a widening loss, partially cushioned by rapid growth in its emerging Traditional Chinese Medicine (TCM) merchandising arm.

Financial summary • Revenue declined 19.30 % year-on-year to RMB 149.79 million, driven by softer demand in the domestic logistics market. • Net loss attributable to shareholders expanded to RMB 5.74 million (1H 2025: RMB 2.31 million); total comprehensive expense reached RMB 9.46 million. • Loss per share widened to RMB 0.86 fen from RMB 0.54 fen. • No interim dividend was declared.

Segment performance • Transportation services revenue fell 46.36 % to RMB 79.81 million as downstream manufacturers cut volumes and pricing pressure intensified. • Warehousing services dropped 29.70 % to RMB 5.16 million. • In-plant logistics eased 3.28 % to RMB 25.88 million. • Customisation services delivered RMB 0.50 million (-32.43 %). • Sales of TCM, goat milk powder and other health products surged to RMB 38.45 million (1H 2025: RMB 1.94 million), becoming the second-largest revenue contributor.

Cost dynamics • Sub-contracting expenses retreated 44.23 % to RMB 76.87 million, mirroring lower logistics activity. • Employee benefits declined to RMB 25.55 million (-4.85 %). • Finance costs slipped to RMB 0.44 million, reflecting a continued net cash position. • Net exchange losses and reduced interest income turned other income to a RMB 0.53 million deficit (1H 2025: RMB 2.98 million gain).

Balance-sheet highlights • Net current assets stood at RMB 166.30 million; cash and cash equivalents totalled RMB 77.31 million. • With cash exceeding borrowings and lease liabilities, the Group remained ungeared. • Total equity amounted to RMB 191.78 million.

Funding activities and allocation • HK$34.20 million raised in the July 2023 placing has been fully deployed, mainly into TCM business expansion and general working capital. • HK$18.50 million from the April 2024 placing is earmarked for logistics infrastructure; HK$7.70 million remains unutilised. • HK$67.60 million net proceeds from the May 2025 rights issue are being channelled into working capital, TCM and broader health-product initiatives, and construction of a TCM logistics park in Jiangxi; HK$42.90 million remains unspent.

Strategic developments • Contract signed in January 2026 to build the Jiangxi Fuzhou TCM Logistics Industrial Park (capex ≈ RMB 24.65 million). • Acquired 70 % of Letongtang Pharmaceutical (Hubei) for RMB 2.66 million, and 100 % of Hangzhou Yihang Logistics for RMB 0.01 million, strengthening TCM distribution and international freight forwarding capabilities. • Management prioritises asset-light logistics, expansion of the healthcare supply-chain ecosystem and cross-border services, while tightening cost controls and advancing digitalisation.

Governance updates • Mr Xiao Wentao joined the Board as Executive Director on 19 August 2026. • Audit Committee has reviewed the unaudited interim results; no post-period material events were noted.

The Board expects continued industry consolidation in domestic logistics, while specialised healthcare logistics and cross-border demand provide growth avenues for the remainder of 2026.

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