Yip's Chemical Announces 2025 Annual Results; Profit Attributable to Owners Increased to HKUSD137 million; Proposed Final Dividend of HK12 Cents per Share

DJ Yip's Chemical Announces 2025 Annual Results; Profit Attributable to Owners Increased to HKUSD137 million; Proposed Final Dividend of HK12 Cents per Share

EQS Newswire / 26/03/2026 / 22:23 UTC+8 
 
?For Immediate Release? 
 
26 March 2026  

Yip's Chemical Announces 2025 Annual Results 
 
Effective Business and Product Portfolio Improvements 
 
 Driving Gross Margin and Profit Growth 
 
Profit Attributable to Owners Increased to HKUSD137 million 
 
Proposed Final Dividend of HK12 Cents per Share 

Highlights: 
 
 -- Confronted with global economic uncertainties, slowing domestic growth and mounting pressures from industry 
  "involution", the Group recorded a revenue of HKUSD2.99 billion and sales volume of 240,000 metric tonnes, 
  representing year-on-year declines of 5.3% and 9.3% respectively. 
 -- Through deepened focus on niche industry segments, product portfolio optimisation and enhancement of technology and 
  services, coupled with the benefit of stable raw material prices, gross profit margins of the coatings and inks 
  businesses improved over the preceding year. Overall gross profit margin of the Group rose to 25.4%, representing a 
  year-on-year increase of 1.9 percentage points. 
 -- Solvents associate company's export sales grew strongly, driving its sales volume to a historical high of 1,800,000 
  metric tonnes. Though impacted by industry "involution" with margins and profits contracting, it still contributed 
  a return of HKUSD79.4 million to the Group, compared with HKUSD96.0 million in the preceding year. 
 -- Benefiting from the sustained refinement of the Group's business and product portfolio and the effective 
  implementation of stringent cost controls, profit attributable to owners substantially increased by 41.8% 
  year-on-year to HKUSD137 million. 
 -- Gearing ratio continued to be at a relatively low level of 13.4%, enhancing the flexibility of future investments 
  in new growth projects. 
 -- In the year under review, the Group completed the acquisition of approximately 60% stake in "Sino-Hypro", and 
  entered into the chemical vapour recovery and treatment market, providing a new growth engine for the Group. 
 -- The Board recommended payment of a final dividend of HK12 cents per share. Total dividends for the year amounted to 
  HK16 cents per share, representing a 14.3% increase as compared to the preceding year. 

(Hong Kong, 26 March 2026) Yip's Chemical Holdings Limited (SEHK: 00408) ("Yip's Chemical" or the "Company", together 
with its subsidiaries collectively referred to as the "Group") today announced its annual results for the year ended 31 
December 2025 (the "year under review"). 

During the year under review, the operating environment remained volatile and fraught with unprecedented uncertainty. 
Together with weak domestic demand in the Chinese Mainland and the severe industry "involution", the Group's core 
businesses faced considerable sales pressure. Nevertheless, margins benefited from stable raw material prices and the 
effectiveness of the Group's sustained cost-control measures. The Group recorded revenue of HKUSD2.99 billion, 
representing a mild decrease of 5.3% year-on-year. Overall gross profit margin improved to 25.4%, up 1.9 percentage 
points from last year, while profit attributable to shareholders rose to HKUSD137 million, representing a year-on-year 
increase of 41.8%. The Board recommended the payment of a final dividend of HK12 cents per share (2024 final dividend: 
HK11 cents per share). 

The Group's cash flow and gearing ratio continued to improve and remained at healthy levels, providing greater 
flexibility to support future investments in new growth projects. In December 2025, the Group completed the acquisition 
of approximately 60% equity interest in Beijing Sino-Hypro Petrochemical Tech. Co., Ltd. ("Sino-Hypro"), a leading 
enterprise in chemical vapour recovery and treatment in the Chinese Mainland, marking Yip's Chemical's formal entry 
into a high-technology and sustainability-driven chemical vapour treatment field. 

Mr. Ip Chi Shing, Chairman of Yip's Chemical, expressed, "Despite the challenging macro environment, I remain 
cautiously optimistic about the business outlook for 2026. In 2025, the Group successfully advanced two significant 
business expansion initiatives, further strengthening our long-term competitiveness and unlock growth potential. First, 
the Group's solvents associate, Handsome Chemical, has completed and commissioned its new plant in Hubei with an annual 
capacity of 600,000 metric tonnes of acetic acid and 600,000 metric tonnes of acetates. The new facility will continue 
to generate economies of scale, enhance competitiveness, and is expected to deliver steady growth in its contribution 
to the Group's profitability. In addition, through close collaboration and complementary strengths with Sino-Hypro, 
this new business is expected to accelerate its development and become an important new member of the "leading 
development platform for chemical businesses" that Yip's Chemical has been dedicated to establishing in recent years." 

Chairman Ip added, "In the current macroeconomic environment, the Group will continue to uphold a prudent and steady 
approach, implement comprehensive cost-reduction and efficiency-enhancement measures, and consistently strengthen our 
operational efficiency and competitiveness. While driving the sustainable and healthy growth of our core businesses, we 
will also actively introduce high-quality enterprises with technological capabilities and growth potential to join the 
Yip's platform, thereby building a diversified and synergistic business portfolio. This will lay a solid foundation for 
the vision of a "Towards a Century of Revered Leadership" and create long-term and stable return for shareholders and 
stakeholders." 

Business Review and Outlook 

Coatings 
 
During the year under review, the Chinese Mainland property market showed little signs of recovery and affected by 
sluggish transactions in both new and existing projects, the architectural coatings business continued to face pressure 
in a challenging operating environment. Although the Group made efforts to expand its distributors' network, declining 
demand for architectural coatings led to a drop in sales volume.  As a result, the Group's coatings business recorded a 
decline of 14.7% to 157,000 metric tonnes in sales volume and a mild decline of 5.3% to HKUSD1.38 billion in sales 
revenue, respectively. The industrial coatings business, as a niche segment, achieved substantial increase in sales 
through effective product portfolio management and the launch of products that receive high market recognition, 
including coatings for customised wooden furniture and functional coatings for plastic substrates. Meanwhile, resins 
business continued to conduct research and development of products related to automotive coatings and protective 
coatings, leading to growth in both sales revenue and profit. The coatings business recorded a gross profit margin of 
29.8%, an increase of 3.6 percentage points compared to that of the preceding year. The segment results increased 
substantially by 623% to HKUSD52.2 million. 

In the coming year, the Group will leverage the momentum of the development of industrial coatings and resin products, 
allocating additional resources to focus on driving the growth of these business segments. The Group's production base 
in Vietnam is expected to commence operations in the second quarter of 2026, enabling better service to customers 
across Southeast Asia in the future. In addition, the Group is also actively pursuing mergers and acquisitions of 
entities with technological capacities to accelerate its development. In the architectural coatings sector, the Group 
will focus on domestic market and adopt more pragmatic promotional strategies and in collaboration with distributors 
across the country to develop a more extensive online-and-offline store network to further expand market coverage. 

Inks 
 
During the year under review, the Group's inks business recorded a revenue of HKUSD1.32 billion, representing a slight 
decrease of 3.3% compared to that of the preceding year. Amid a highly competitive environment, the inks business 
continued to gain recognition from major printing enterprises in the Chinese Mainland by offering cost-effective 
products and services, resulting in increased sales volume. With expanded sales volume enabling effective cost 
allocation and raw material prices remaining relatively low, the gross profit margin rose by 1.1 percentage points to 
21.6%. However, under the pressure from overall economic environment, certain customers encountered operational 
difficulties, resulting in a substantial bad debt provision during the year under review. Therefore, the inks business 
recorded a segment profit of HKUSD46.3 million, representing a decrease of 40.1% compared to that of the preceding year. 
Looking ahead to the coming year, we will continue to fortify its strengths in packaging printing inks, further expand 
market share and remain attentive to potential merger and acquisition opportunities involving technology-driven inks 
enterprises in the market to accelerate development. 

Lubricants 
 
During the year under review, revenue from the lubricants business decreased by 12.4% to HKUSD284 million, and the gross 
profit margin dropped by 1.2 percentage points to 22.1%. This segment recorded a profit of HKUSD6.5 million, representing 
a decrease of 31.6% compared to that of 2024. The demand for automotive lubricants was impacted by the overall industry 
"involution", thereby exerting pressure on the selling prices, gross profit and profits of "Hercules" lubricants. 
Looking ahead, the Group will steadily grow the sales volume of automotive lubricants by continuously optimising its 
product portfolio and prudently investing in the development of niche segments within the industrial lubricants market, 
so as to create new growth drivers for the lubricants business. 

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