GAPACK Interim 2026: Revenue Falls 14.5%, Profit Plunges 91.7%; Trading Remains Suspended

Bulletin Express08-26

Greatview Aseptic Packaging Company Limited (GAPACK) released its unaudited results for the six months ended 30 June 2026, alongside an update on its prolonged trading suspension.

Financial Performance • Revenue slid 14.5% year on year to RMB 861.0 million. • Net profit contracted 91.7% to RMB 6.92 million, cutting net margin to 0.8% (1H25: 8.2%). • Gross profit declined 24.2% to RMB 122.85 million; gross margin narrowed by 1.8 ppt to 14.3%. • Administrative expenses climbed 30.0% to RMB 102.61 million, offsetting part of the savings from a 12.6% reduction in cost of sales. • Basic earnings per share fell from RMB 0.059 to RMB 0.006.

Segment Breakdown • PRC operations generated RMB 740.39 million (86% of total), down 1.8% amid lower average selling prices and softer filling-machine revenue. • International sales dropped 52.3% to RMB 120.60 million, reflecting weaker volumes and pricing.

Cash Flow & Balance Sheet • Operating cash outflow reached RMB 129.30 million (1H25: inflow of RMB 1.71 million). • Cash and cash equivalents stood at RMB 211.34 million, versus RMB 461.74 million at end-2025. • Working capital remained solid at RMB 960.31 million; gearing stayed at zero following full repayment of short-term borrowings. • No interim dividend was declared.

Operational Highlights • Sales volume slipped 7.6% to 5.81 billion packs. “Greatview Brick Aseptic 250 Base” remained the best-seller. • Ongoing digitalisation and AI initiatives led to higher administrative spend but delivered efficiency gains, including a 60% improvement in production scheduling speed and a 70% boost in procurement review efficiency. • The company advanced sustainable packaging, highlighting its aluminium-free cartons and achieving a “5A” Extended Producer Responsibility rating in mainland China.

Corporate & Compliance Developments • GAPACK’s shares have been suspended since 19 February 2025 due to public-float shortfall after a change in control. The Hong Kong Stock Exchange has set 18 August 2026 as the deadline for resumption, subject to meeting prescribed conditions; the company is seeking an extension. • Investigations into the 2024 restructuring and deconsolidation of the international business concluded, leading to internal control enhancements and multiple ongoing legal actions aimed at unwinding disputed transactions. • On 27 February 2026 shareholders approved replacing Grant Thornton with Rongcheng (Hong Kong) CPA Limited as auditor. • Three arbitration applications were filed in March 2026 against subsidiaries of the deconsolidated international arm over alleged unauthorised agreements. • In August 2026 the Board proposed adopting a Restricted Share Unit Scheme, pending shareholder approval.

Outlook Management targets deeper penetration in the domestic market, controlled overseas expansion, continued R&D in sustainable and differentiated packaging, and further digital transformation. The company also prioritises restoring public float to satisfy resumption requirements, while it navigates ongoing legal proceedings and enhances governance controls.

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