GAPACK (00468) has released its interim results for the 2026 fiscal year, showing a challenging period for the packaging company. The company recorded a year-on-year decline of approximately 14.5% in revenue, bringing the total to around RMB 861 million, while profit attributable to owners of the company fell sharply by 90.12% to RMB 8.182 million. Earnings per share came in at RMB 0.006.
During the first half of the year, the company sold approximately 5.81 billion packages, marking a decrease of about 7.6% compared to the same period in 2025. This reduction was primarily driven by lower sales volumes in its international business segment. The company's best-selling product remains the "GAPACK Brick Aseptic Packaging 250ml Standard," followed by the "GAPACK Pillow Aseptic Packaging 250ml Standard."
Where the decline stems from
According to the company's announcement, the reduction in revenue was mainly attributable to a drop in both sales volume and average selling prices. The substantial decrease in net profit, however, was driven by several key factors. These include a year-on-year decline in gross profit margin, a change in the accounting treatment of the group's international business investment in March 2025—which resulted in the recognition of share of profits from associates from January to March 2025 but no corresponding profit recognition in 2026—as well as an increase in administrative expenses compared to the previous year.
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