SANVO CHEMICALS (SANVO Fine Chemicals Group Ltd.) reported a return to profitability for the six months ended 30 June 2026, reversing a year-earlier loss on the back of firmer margins and stable top-line growth.
• Revenue rose 1.00 % year on year to RMB 520.45 million, driven by resilient domestic demand. • Gross profit increased 6.20 % to RMB 180.60 million; gross margin expanded 1.7 percentage points to 34.7 %. • Profit attributable to shareholders improved to RMB 3.52 million, compared with a loss of RMB 11.38 million in the prior-year period. Basic earnings per share were RMB 0.75 cents (1H 2025: loss of RMB 2.42 cents). • No interim dividend was declared.
Segment performance showed mixed trends: – Aerosols contributed RMB 304.65 million (58.52 % of group revenue). – Organic silicone adhesives generated RMB 118.56 million (22.79 %). – Synthetic adhesives delivered RMB 32.30 million (6.20 %). – Other products, including architectural coatings, oils and wood paints, added RMB 64.95 million (12.48 %).
OPERATING UPDATE Management highlighted the phased rollout of a new ERP platform to strengthen data analytics, CRM and supply-chain controls. The group also completed the acquisition of industrial land in Puyang, Henan Province, to extend market coverage into Central China. Headcount rose slightly to 1,386 employees; staff costs were RMB 89.90 million.
BALANCE-SHEET AND CASH FLOW • Net current liabilities stood at RMB 415.82 million (31 Dec 2025: RMB 405.00 million); current ratio improved to 0.47. • Total bank and other borrowings increased to RMB 299.21 million; gearing ratio rose to 1.48 from 1.35. • Operating cash outflow was RMB 2.08 million; investing outflow reached RMB 10.04 million amid continued capex. • Capital commitments totalled RMB 328.58 million, mainly for factory projects in Zhongshan and Puyang.
LITIGATION EXPOSURE The company remains engaged in several construction-related lawsuits with aggregate contested amounts exceeding RMB 20 million. Provisions deemed adequate have been recorded; management does not expect material impact on overall financial position.
OUTLOOK SANVO CHEMICALS plans to maintain focus on online sales growth, gross-margin control and expansion in Central China while continuing negotiations to extend or refinance short-term bank facilities. The board reiterated its decision to retain earnings to support ongoing development initiatives.
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