SANVO Fine Chemicals Group Limited reported a RMB 3.52 million profit attributable to shareholders for the six months ended 30 June 2026, reversing a RMB 11.38 million loss in the prior-year period.
Revenue edged up 1.0 % year on year to RMB 520.45 million, while gross profit rose 6.2 % to RMB 180.64 million. Gross margin expanded 1.7 percentage points to 34.7 % on a richer product mix and higher online sales contribution.
Operating expenses were broadly stable: selling and distribution costs increased 1.9 % to RMB 109.61 million, administrative expenses were flat at RMB 66.87 million, and finance costs fell 59.5 % to RMB 2.05 million after interest capitalisation. A RMB 6.25 million non-cash share-based payment expense was recognised.
Net operating cash outflow totalled RMB 2.08 million; capital expenditure reached RMB 18.12 million, mainly for plant and machinery, with a further RMB 19.43 million pre-paid for equipment.
Balance-sheet leverage remains high. Net current liabilities stood at RMB 415.82 million (31 Dec 2025: RMB 405.01 million) and the gearing ratio climbed to 1.48. Total borrowings were RMB 299.21 million, of which RMB 293.44 million are bank loans subject to financial covenants currently under negotiation.
Capital commitments linked to factory projects in Zhongshan and Puyang amounted to RMB 328.58 million, and the group continues phased deployment of a new ERP platform to support expansion into central China.
The board declared no interim dividend.
Litigation continues over several construction contracts; provisions have been maintained and management stated that existing accruals are adequate.
As at period-end the group employed 1,386 staff, up 1.5 % from December, with total employee costs of RMB 89.89 million.
Comments