Yancheng Port International posted a markedly improved interim performance for the six months ended 30 June 2026, trimming its net loss despite a challenging macro-economic backdrop and higher finance costs.

Financial highlights • Revenue rose 24.3% year on year (YoY) to HK$639.50 million, driven by stronger trading activity and a rebound in petrochemical storage income. • Loss before tax contracted 70.5% to HK$7.90 million (H1 2025: HK$26.78 million). • Net loss attributable to shareholders fell 70.7% to HK$7.90 million, translating into a basic loss per share of HK0.61 cents (H1 2025: HK2.09 cents). • Gross profit surged to HK$10.96 million, lifting gross margin to 1.7% from 0.3% a year earlier.

Segment performance • Trading business revenue advanced 23.1% to HK$623.30 million, supported by wider customer coverage and higher sales volumes across petrochemical, electronic and soybean products. • Petrochemical storage revenue nearly doubled to HK$16.17 million, reflecting improved tank-farm utilisation and firmer rental rates.

Cost structure and profitability • Cost of revenue increased 22.5% to HK$628.52 million, in line with higher trading volumes. • Finance costs rose 32.0% to HK$13.28 million, primarily due to a HK$167.76 million rise in bank borrowings. • A HK$9.21 million disposal gain from the sale of subsidiary Worldly Development partially offset operating losses.

Cash flow and balance sheet • Operating cash inflow totalled HK$103.39 million versus an outflow of HK$75.54 million in the prior-year period. • Cash and bank balances ended at HK$19.33 million (31 Dec 2025: HK$5.28 million). • Total interest-bearing borrowings climbed 27.2% to HK$587.46 million; gearing stood at negative 111.5% due to a shareholders’ deficit of HK$526.74 million. • Net current liabilities widened to HK$675.25 million, and the current ratio slipped to 0.34 (31 Dec 2025: 0.56). • Capital expenditure commitments amounted to HK$227.20 million, mainly for petrochemical storage assets.

Corporate actions • No interim dividend was declared. • The disposal of Worldly Development was completed, adding HK$9.21 million to earnings. • No material acquisitions, share issues, buy-backs or contingent liabilities were reported during the period.

Outlook Management expects global economic uncertainties to persist but anticipates a gradual domestic recovery in the second half of 2026. The group plans to focus on fortifying its core trading and storage operations, enhance resource allocation within Jiangsu’s port integration framework, and pursue selective investments to bolster long-term growth while maintaining a prudent financial posture.