--- title: "[TrueZhuo HK Market Trends] Yip's Chemical announced its full-year 2025 results, with profit attributable to shareholders increasing to HK$137 million, and declared a final dividend of 12 HK cents per share." type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/39889538.md" description: "$YIP'S CHEMICAL(00408.HK) announced its full-year results for the period ended December 31, 2025. During the year under review, the operating environment remained volatile and filled with unprecedented uncertainty. Coupled with weak domestic demand and severe industry "involution" in China, the Group's core business faced considerable pressure on sales. However, benefiting from stable raw material prices and the effectiveness of the Group's long-term commitment to cost control, the Group's gross margin increased. The Group recorded revenue of HKD 2.99 billion, a slight decrease of 5.3% compared to the same period last year. The overall gross profit margin rose to 25.4%..." datetime: "2026-04-14T06:26:12.000Z" locales: - [en](https://longbridge.com/en/topics/39889538.md) - [zh-CN](https://longbridge.com/zh-CN/topics/39889538.md) - [zh-HK](https://longbridge.com/zh-HK/topics/39889538.md) author: "[真灼财经](https://longbridge.com/en/profiles/1067948.md)" --- # [TrueZhuo HK Market Trends] Yip's Chemical announced its full-year 2025 results, with profit attributable to shareholders increasing to HK$137 million, and declared a final dividend of 12 HK cents per share. $YIP'S CHEMICAL(00408.HK) announced its full-year results for the period ended December 31, 2025. During the year under review, the operating environment remained volatile and filled with unprecedented uncertainties. Coupled with weak domestic demand in China and severe industry "involution," the Group's core businesses faced considerable pressure on sales. However, benefiting from stable raw material prices and the effectiveness of the Group's long-term cost control efforts, the gross margin improved. The Group recorded revenue of HKD 2.99 billion, a slight decrease of 5.3% compared to the same period last year. The overall gross profit margin rose to 25.4%, an increase of 1.9 percentage points year-on-year. Profit attributable to shareholders significantly increased to HKD 137 million, up 41.8% from the previous year. The Board recommended the payment of a final dividend of 12 HK cents per share to all shareholders of the Group. The Group's cash flow and gearing ratio continued to improve, maintaining a healthy level, providing more flexibility for future investments in new growth projects. In December 2025, the Group completed the acquisition of approximately 60% equity in "Xinnuo Haibo," a leading domestic chemical gas recovery and treatment enterprise, marking Yip's Chemical's official entry into the high-tech and sustainable chemical gas treatment sector. Mr. Yip Chi Shing, Chairman of Yip's Chemical, said, "Although the macro environment remains challenging, I maintain a cautiously optimistic outlook for the business prospects in 2026. The Group successfully advanced two important business expansions in 2025, which will further consolidate our long-term competitive advantages and unlock growth potential. Firstly, the new plant of our solvent joint venture, 'Qianxin Chemical,' located in Hubei with an annual capacity of 600,000 tons of acetic acid and 600,000 tons of acetate, has been smoothly put into operation. It will continue to release economies of scale to enhance competitiveness, expected to contribute to steady profit growth for the Group. Furthermore, through cooperation and complementary strengths with Xinnuo Haibo, we will accelerate the growth of this new business, making it an important new member of the 'exquisite chemical enterprise development platform' that Yip's has been striving to build in recent years." Chairman Yip continued, "In the current macro environment, the Group will continue to adhere to the principle of prudence, firmly advance cost reduction and efficiency improvement, and continuously enhance operational efficiency and competitiveness. On one hand, we will promote the sustained and healthy growth of our core businesses. On the other hand, we will actively introduce high-quality enterprises with technological content and development potential to jointly build a diversified Yip's platform. This will lay a solid foundation for the 'Centennial Yip's' and create long-term and stable returns for shareholders and stakeholders." **Business Review and Outlook** **Coatings** During the year under review, the Chinese mainland real estate market showed no signs of recovery and was affected by sluggish transactions of both new and existing properties. The architectural coatings business continued to face pressure in a challenging operating environment. Although the Group made efforts to expand its distributor network, reduced demand for architectural coatings led to a decline in sales volume. Consequently, the sales volume of the Group's coatings business decreased by 14.7% to 157,000 tons, while revenue slightly decreased by 5.3% to HKD 1.38 billion. Industrial coatings, as a segment, achieved considerable sales growth by optimizing the product mix and launching products with high market acceptance, including wood custom furniture coatings and functional products with plastic substrates. Meanwhile, the resin business continued to develop products related to automotive coatings and anti-corrosion coatings, increasing sales and profits. The coatings business recorded a gross profit margin of 29.8%, an increase of 3.6 percentage points from last year. Segment profit surged 623% to HKD 52.2 million. In the coming year, the Group will leverage the momentum of industrial coatings and resins, focusing resources to drive business growth in this segment. The Group's production base in Vietnam is expected to commence operations in the second quarter of 2026, enhancing service to Southeast Asian customers. Additionally, the Group is actively seeking technology-driven M&A opportunities to accelerate development. For architectural coatings, the future strategy involves penetrating the existing property market through more localized promotion methods, collaborating with distributor partners nationwide to develop more online and offline store networks to further expand market reach. **Inks** The Group's ink business recorded revenue of HKD 1.32 billion during the year under review, a slight decrease of 3.3% compared to the previous year. In a highly competitive environment, the ink business continued to win recognition from large domestic printing enterprises through cost-effective products and services. Sales volume growth led to more effective cost allocation, and coupled with relatively low raw material prices, the gross profit margin increased by 1.1 percentage points to 21.6%. Unfortunately, due to pressure from the overall economic environment, some customers performed poorly, resulting in significant bad debt provisions during the year. Consequently, the ink business recorded a segment profit of HKD 46.3 million, a decrease of 40.1% from last year. Looking ahead, the Group will continue to consolidate its advantages in packaging printing inks, expand market share, and remain attentive to M&A opportunities for technology-driven ink enterprises to accelerate development. **Lubricants** During the year under review, the lubricants business revenue declined by 12.4% to HKD 284 million, and the gross profit margin decreased by 1.2 percentage points to 22.1%. The business recorded a profit of HKD 6.5 million, a decrease of 31.6% compared to the same period last year. Demand for automotive lubricants was affected by the overall "involution" situation, putting pressure on the selling prices, gross margins, and profits of the "Lishi" lubricants. In the future, the Group will steadily develop automotive lubricant sales, continuously improve the lubricant product mix, and prudently invest in exploring niche industrial oil markets to add highlights to the lubricants business. **Investment in Solvent Joint Venture** The Group holds a 24% effective interest in "Qianxin Chemical," the world's largest acetate solvent company. In 2025, the solvent joint venture's sales volume grew strongly by 17.2%, reaching a record high of 1.8 million tons of acetate. Export sales reached approximately 760,000 tons, becoming a major growth driver. At the same time, the joint venture continued to effectively control costs. The solvent joint venture contributed HKD 79.4 million to the Group during the year under review, compared to a profit contribution of HKD 96 million last year. The joint venture's new acetic acid and acetate plant in Hubei officially commenced operations in the second half of 2025. The increase in acetic acid and acetate production, along with product vertical integration and economies of scale, is gradually materializing. Under the efficient leadership of the joint venture's management team and in collaboration with business partners "PAG" and "Qisheng," the solvent business is expected to continue its positive development trend. **Investment in Xinnuo Haibo** In December 2025, the Group successfully completed the acquisition of approximately 60% equity in Xinnuo Haibo, officially entering the chemical gas recovery and treatment industry. This subsidiary injects a new growth point into the Group while its chemical gas treatment technology makes substantial environmental contributions to China's environmental governance. Management and the original shareholders will work closely together to fully leverage Xinnuo Haibo's strong technological foundation and Yip's Chemical's operational experience. We are confident that this subsidiary has promising development prospects. Mr. Yip Kwan, Chief Executive Officer of Yip's Chemical, concluded, "Over the past few years, the Group's management has continuously consolidated the market position of our core businesses, gradually establishing a relatively robust profit foundation. Looking ahead, in addition to driving the organic growth of our core businesses, we will fully commit to enhancing the operational efficiency of the new business, Xinnuo Haibo, nurturing it to become an important growth engine for the Group. Simultaneously, the Group is actively seeking strategic investment and M&A opportunities that align with Yip's Chemical's future development, including opportunities with synergistic effects for core businesses such as coatings and inks, to accelerate the development speed of the 'exquisite chemical enterprise development platform.' We believe these initiatives will further consolidate profit growth, add new momentum to the business, and propel the Group towards a successful future." ### Related Stocks - [00408.HK](https://longbridge.com/en/quote/00408.HK.md)