YNBY International Ltd. Overview
YNBY International is the Hong Kong-listed international trading and distribution platform of Yunnan Baiyao Group, one of China's best-known traditional Chinese medicine (TCM) and consumer-health brand owners. Emerging from a severe 2022 governance and credit crisis under its former identity, Ban Loong Holdings, the company has been rebuilt since 2022 by a Yunnan Baiyao-appointed management team with Huawei international-business pedigree. Its revenue comes almost entirely from low-margin trading: healthcare and cosmetics raw materials sold to PRC manufacturers (including Yunnan Baiyao itself), third-party-branded goods sold to Chinese and Korean e-commerce platforms, and, increasingly strategically, overseas distribution of Yunnan Baiyao-branded medicines and toothpaste, including Thai-manufactured product. Revenue scaled from HK$180m (FY Mar-2022) to HK$1.11bn (FY2025), but gross margin compressed to 4.6% in FY2025 and 3.0% in 1H2026, leaving profits marginal. The investment case rests on whether the parent's global-expansion mandate converts into higher-margin branded distribution.
The company's own description
In its FY2025 annual report, the company describes itself as principally engaged in the trading of goods and commodities, comprising e-commerce and general trading and raw-materials trading, together with professional services such as product registration and promotion. Operations are divided into (i) a trading-of-goods-and-commodities segment, covering (a) e-commerce and general trading, (b) raw-material trading for healthcare products in the PRC, and (c) distribution of "YNBY Products" manufactured and branded by the company or by Yunnan Baiyao Group to overseas markets; and (ii) an "other" segment providing marketing services, product registration services and OEM/ODM sourcing (AR2025, MD&A). The principal activity of the listed parent is investment holding (Interim 1H2026, note 1).
The e-commerce business sells third-party-branded products sourced from overseas suppliers to PRC platforms such as VIP.com, JD.com and Tmall, and to overseas platforms such as Coupang; FY2024 filings additionally named Lazada and Shopee (AR2024; AR2025). The raw-materials business, which grew out of the former CBD (cannabidiol) trading activity from early 2022, supplies plant extracts and inputs such as packaging materials, sorbitol, steviol glycoside, lauric acid and glycerin to PRC cosmetics and healthcare manufacturers (AR2024, MD&A).
Business model and revenue model
| Revenue stream | Model | Recognition | FY2025 relevance | Source |
|---|---|---|---|---|
| Raw-material trading ("global supply chain integration") | Buy-sell trading; margin = spread between procurement cost and selling price | Point in time | Core; HK$191.6m sold to Yunnan Baiyao Group alone in FY2025 | AR2025 CCT disclosure |
| E-commerce & general trading | Buy-sell of third-party branded goods to platforms; inventory-light, order-backed | Point in time | Core volume driver | AR2025 |
| YNBY Products overseas distribution | Purchase from Yunnan Baiyao Group / contract manufacturers, resell overseas | Point in time | Strategic; purchases from parent only HK$3.8m in FY2025 vs HK$200m cap | AR2025 CCT table |
| Professional services (registration, IP, marketing, OEM/ODM sourcing) | Cost-plus fee (10–15% mark-up) | Over time | Nil revenue FY2024, FY2025, 1H2026; HK$9.2m in 9M2023 | AR2025; FY2024 results |
The mix is effectively 100% product trading; there is no subscription, licensing or recurring-service revenue in the latest three reporting periods (FY2024 results note 4; Interim 1H2026 note 4).
Independent characterisation
YNBY International is best understood as a captive trading house and international market-entry vehicle for Yunnan Baiyao Group rather than a pharmaceutical or consumer brand company in its own right. Three features dominate its economics. First, it carries minimal fixed assets (property, plant and equipment of HK$2.0m at 30 June 2026) and no owned manufacturing; its Thai toothpaste is contract-manufactured. Second, its gross margin is structurally thin and volatile, determined by product mix — FY2024's 8.74% reflected higher-margin YNBY product sales, while FY2025 fell to 4.63% and 1H2026 to about 2.95% (derived) as low-margin trading volume surged. Third, it is highly concentrated: the top five customers generated 72.4% of FY2025 sales and the largest customer 29.7%, while one of the top five is a Yunnan Baiyao Group entity (AR2025). In value-chain terms it sits in the middle — sourcing, logistics coordination, customs clearance and quality inspection — between upstream ingredient suppliers or brand owners and downstream manufacturers, platforms and overseas retailers.
Customer types and end-markets
| Customer type | Examples (as disclosed) | End-market |
|---|---|---|
| PRC cosmetics & healthcare manufacturers | Yunnan Baiyao Group (related party); unnamed independent third parties | Oral care, personal care, health products |
| E-commerce platforms (PRC) | VIP.com, JD.com, Tmall | Cross-border/imported consumer goods |
| E-commerce platforms (overseas) | Coupang (Korea); historically Lazada, Shopee (SE Asia) | Consumer goods |
| Overseas distributors / retailers of YNBY Products | Customers in Hong Kong, Indonesia, Singapore, USA (FY2024 disclosure) | TCM, OTC, oral care |
| General trading clients | Not named | Mixed commodities |
Strategy
Stated strategy (paraphrased from AR2025 and Interim 1H2026)
Management frames its strategy around three opportunity sets that it says have been pursued since 2022: (1) trading of goods and commodities, including e-commerce and general trading; (2) supply-chain trading business; and (3) TCM international trading. It positions YNBY International as the vehicle that leverages its existing overseas distribution network and marketing expertise to execute Yunnan Baiyao Group's globalisation strategy. The FY2025 annual report cites supportive macro data — China's online retail sales of RMB15.97tn in 2025 (+8.6%), cross-border e-commerce trade of RMB2.75tn, and policy support under the "Three-Year Action Plan for Digital Commerce (2024–2026)" — and highlights growing international recognition of TCM. The 1H2026 interim adds explicit reference to the "15th Five-Year Plan for the Revitalisation and Development of TCM" and the "Implementation Plan for the High-Quality Development of the TCM Industry (2026–2030)", which encourage international registration of proprietary Chinese medicines, localised production abroad and overseas warehouses for TCM cross-border e-commerce.
Strategic initiatives (last 24 months)
| Initiative | Date | Description | Status / evidence | Source |
|---|---|---|---|---|
| Reallocation of CBD proceeds | 14 Mar 2025 | HK$152m of unused CB and 2022-placing proceeds redirected from CBD/hemp to existing raw-material, e-commerce and Asian marketing businesses | HK$102m CB proceeds fully used by Dec 2025; HK$46m of 2022 placing used in FY2025 | AR2025 |
| 2025 equity placing | May 2025 | 800m shares at HK$0.1161 (net HK$92m) for ASEAN registration/OEM (HK$15m), ASEAN marketing & network (HK$15m), ASEAN sales (HK$25m), working capital (HK$37m) | Only HK$19m used by Jun 2026; ASEAN deployment delayed to end-2027 due to slower regulatory approvals | AR2025; Interim 1H2026 |
| Overseas distributorship of YNBY Products | 18 Jun 2025 | Authorisation to distribute YNBY Products worldwide excluding the PRC (described as "exclusive" in the June 2025 announcement and as "general distributorship" in AR2025 and the 2026 interim) | Renewed via 2026 Framework Agreement for three years | Announcement 19 Jun 2025; AR2025 |
| Offshore manufacturing of Yunnan Baiyao toothpaste | 30 Jun 2025 | First Thai-made batch sold — first Yunnan Baiyao toothpaste made outside mainland China | Production partner Greensville (Osotspa) | Announcement 30 Jun 2025; Osotspa release |
| Osotspa synergistic partnership | 17 Dec 2025 | Two-way: OEM manufacturing in Thailand; YNBY distributes Babi Mild baby care into China | Revenue impact not disclosed | Osotspa release |
| Completion of bond conversion | 27 Feb 2026 | Parent converts HK$500m CB into 1.94bn shares | Completed; public float maintained | Announcement 27 Feb 2026 |
| 2026 Framework Agreement | 18 Mar 2026; approved 5 Jun 2026 | Renewal of services, supply chain and cross-distribution framework for three years | Annual caps set in circular | Interim 1H2026; SGM poll results |
| Capital return | Jun–Jul 2026 | First share buybacks under AGM mandate: 109.9m shares, c.HK$28.6m | Held as treasury | Interim 1H2026 |
| Working-capital financing | 1H2026 | First bank supplier-finance facility (HK$16.16m) | Drawn | Interim 1H2026 |
Sustainability/ESG commitments and cost programmes
No quantified ESG targets, transformation programmes or cost-reduction targets are disclosed. Cost control is evidenced qualitatively (flat G&A in FY2025).
Guidance and medium-term targets
Management does not issue revenue, margin or earnings guidance and has no published medium-term financial targets. The only forward-looking quantitative disclosures are the related-party annual caps (e.g., FY2025: global supply chain cap HK$300m; overseas YNBY Products purchase cap HK$200m) and proceeds-deployment timelines.
Products & Services
The company does not publish a product catalogue, SKU list, price list or launch calendar. The catalogue below is assembled product line by product line from annual reports, announcements and counterparty press releases. Pricing is never disclosed beyond the CCT pricing principles.
Trading of goods and commodities
| Product line | Description / specification | Target customer | Year introduced | Pricing model | Named flagship | Source |
|---|---|---|---|---|---|---|
| Plant extracts | Botanical extracts for cosmetics and health products; successor to the CBD-extract business | PRC cosmetics & healthcare manufacturers, incl. Yunnan Baiyao | Early 2022 | Spread over procurement cost, referenced to third-party prices | Not named | AR2024 |
| Sorbitol | Humectant/sweetener used notably in toothpaste | Oral-care and health manufacturers | Early 2022 | As above | Not named | AR2024 |
| Steviol glycoside | Natural high-intensity sweetener | Food/health/oral-care manufacturers | Early 2022 | As above | Not named | AR2024 |
| Lauric acid | Fatty acid used in surfactants/cosmetics | Cosmetics manufacturers | Early 2022 | As above | Not named | AR2024 |
| Glycerin | Humectant for oral care and cosmetics | Oral-care/cosmetics manufacturers | Early 2022 | As above | Not named | AR2024 |
| Packaging materials | Packaging for cosmetics and healthcare products | PRC manufacturers | Early 2022 | As above | Not named | AR2024 |
| Pharmacy and cosmetics materials | General ingredients | PRC manufacturers | Early 2022 | As above | Not named | AR2024 |
| Global supply chain integration for Yunnan Baiyao | Procurement of overseas plantation/breeding resources, medicinal herbs, plant extracts, medical intermediates, cosmeceuticals, food ingredients, biologics and packaging; customs clearance, third-party QC, delivery to parent's PRC warehouses | Yunnan Baiyao Group | 2023 (Framework Agreement) | Market-referenced selling price; company earns the spread | HK$191.6m in FY2025 (cap HK$300m); HK$182.8m in FY2024 | AR2025 CCT disclosure |
| Third-party branded e-commerce goods | Imported branded consumer goods sold to platforms; order-backed sourcing, own/third-party warehousing, QC, customs clearance, after-sales | VIP.com, JD.com, Tmall, Coupang (and historically Lazada, Shopee) | Pre-2022; re-strategised 2022 | Platform wholesale | Brands not named | AR2024; AR2025 |
| General trading | Commodity and goods trading with general clients | General trading clients | Ongoing | Spread | Not named | AR2025 |
YNBY Products — overseas distribution
| Product line | Description | Target markets | Year | Pricing model | Source |
|---|---|---|---|---|---|
| "Yunnan Baiyao" series medicines | Flagship TCM haemostatic/trauma medicines of the parent (formula dating to 1902) | Overseas markets excluding the PRC | Distributorship broadened Jun 2025; renewed 2026 | Market price referenced to ≥2 independent quotations | AR2025; Interim 1H2026 |
| "Yunnan Baiyao" toothpaste series | The parent's oral-care line, which it states has held the No.1 China full-channel share for consecutive years through 1H2025 | Southeast Asia and other overseas markets | First sale of Thai-made batch announced 30 Jun 2025 | As above | Voluntary announcement 30 Jun 2025; AR2025 |
| Thai-manufactured Yunnan Baiyao toothpaste | Contract-manufactured by Greensville Co., Ltd. (Osotspa subsidiary) for international export | International export markets | 2,025 | — | Osotspa release 17 Dec 2025 |
| General medicine products | Other OTC/general medicines of the parent | Overseas | 2,025 | As above | AR2025 |
| Personal care items | Parent's personal-care products | Overseas | 2,025 | As above | AR2025 |
Inbound brand distribution into China
| Product | Description | Market | Year | Source |
|---|---|---|---|---|
| Babi Mild ("Bèi Miào An") | Osotspa's flagship baby-care brand; YNBY to act as strategic distributor into China's mother-and-baby market | PRC | Announced 17 Dec 2025 | Osotspa release 17 Dec 2025 |
| "Group Products" via Yunnan Baiyao channels | Framework allows Yunnan Baiyao to distribute the group's products in the PRC (cap HK$50m in FY2025; actual nil) | PRC | 2023 framework | AR2025 CCT table |
Professional services (Others segment)
| Service | Description | Pricing | FY2025 revenue | Source |
|---|---|---|---|---|
| Product registration | Registration of products under overseas regulatory requirements | Third-party cost + 10–15% mark-up | Nil (cap HK$25m) | AR2025 |
| IP registration | Overseas trademark/IP registration of products | Cost-plus | Nil | AR2025 |
| Overseas marketing | Marketing services for clients' products | Cost-plus | Nil | AR2025 |
| Overseas market expansion / professional support | Identifying health products, sourcing ODM/OEM manufacturers, global marketing support under the parent's name | Cost-plus | Nil (cap HK$25m) | AR2025 |
Discontinued lines
| Line | Status | Source |
|---|---|---|
| Money lending (Hong Kong) | Fully terminated from June 2022; loans of HK$477.8m fully impaired at 31 Mar 2023 | FY Mar-2023 results |
| CBD isolate / CBD-based cosmetics / hemp cultivation plans | Abandoned; unused proceeds reallocated on 14 Mar 2025 following tightened Hong Kong CBD policy | AR2024; AR2025 |
| Own-brand CBD product development | Consultancy spending cut in FY Mar-2023 | FY Mar-2023 results |
Financial Narrative
Period key: FY2022 = 12M to 31 Mar 2022; FY2023 = 12M to 31 Mar 2023; 9M2023 = 9M to 31 Dec 2023 (transition); FY2024 and FY2025 = 12M to 31 Dec. All figures HK$ millions unless stated. Sources: FY Mar-2022 & FY Mar-2023 results (published 5–6 Dec 2023); FY2024 results (14 Mar 2025) and AR2024; AR2025 (24 Apr 2026); FY2025 aggregates corroborated by Sina Finance and 10jqka data.
Income statement
FY2025 gross profit is derived from the reported 4.63% gross margin (AR2025); FY2025 pre-tax profit is derived as net profit HK$4.58m plus tax HK$4.98m; FY2025 operating profit is derived as pre-tax profit plus finance costs. A third-party data source (Chinese Wikipedia, citing FY2025) shows EBIT of HK$9.56m, consistent with the pre-tax figure rather than our derived operating profit — the difference (HK$0.35m) is finance cost classification. 9M2023 includes a one-off HK$137.5m disposal gain.
Commentary. The five-period income statement tells a story of collapse, clean-up and re-scaling. FY2022's HK$1.12bn loss was almost entirely credit-driven: HK$564m of other receivables, deposits and prepayments and HK$467m of money-lending loans were impaired after former key management of the PRC subsidiary departed and records could not be located (FY Mar-2023 auditor's basis for disclaimer). FY2023 still carried a HK$130m net ECL charge but showed the first signs of the new management's trading model, with revenue up 153%. The 9M2023 profit of HK$143.7m is not operational: it is dominated by the HK$137.5m gain on disposing of the Shenzhen subsidiary whose records had been lost. FY2024 is the first "clean" year — HK$754.9m revenue, 8.74% gross margin helped by YNBY product sales, and HK$18.1m net profit. FY2025 then saw revenue scale 46.8% to HK$1.11bn, but gross profit fell 22% as margin halved to 4.63%, which the company attributed to lower sales of higher-margin products (Profit warning, 20 Feb 2026; AR2025). Administrative expense discipline has been notable: G&A was essentially flat at HK$30.9–31.0m across FY2024–FY2025 despite higher activity.
Margins and growth
Derived from 6.1. Revenue CAGR from FY2022 (12M to Mar-22) to FY2025 (12M to Dec-25), a 3.75-year span: approx. 62.5% (derived). Because of the period change and the low FY2022 base, this CAGR should not be extrapolated.
Interim trend (latest data point)
Sources: Interim Results 1H2025 and 1H2026. 1H2026 benefited from a HK$1.72m ECL reversal; excluding it, profit before tax would have been roughly flat on 1H2025 (derived).
Balance sheet
Sources: results announcements and annual reports as listed. Goodwill and intangibles are not presented as line items in any period reviewed (shown as nil). Debt in FY2022–9M2023 is principally the liability component of the Yunnan Baiyao convertible bond (3% coupon; effective rate 18.79%).
At 30 June 2026 (Interim 1H2026), total assets had fallen 19.3% to HK$478.13m as HK$100m+ of trade payables carried from FY2025 were settled; cash was HK$145.02m; trade receivables HK$311.94m; new short-term supplier-finance bank borrowings HK$16.16m (maturing within 60 days); total equity HK$357.19m; net current assets HK$351.33m. Notably, the balance sheet still carries gross legacy deposits of HK$277.7m against an ECL allowance of HK$276.5m (Dec 2025: HK$323.2m gross, HK$298.8m allowance) — residues of the Ban Loong-era impairments that are being progressively written off.
Commentary. The balance sheet is liquid and essentially ungeared but has become more working-capital intensive. Receivables tripled in FY2025 to HK$348.8m (about 115 days of revenue, derived) against trade payables of HK$189.3m, and the equity base was enlarged by the May 2025 placing (HK$92m net) and, in February 2026, by conversion of the HK$500m bond (which had already been accounted for largely within equity given most proceeds were received in 2020). The large drop in inventory (HK$50.3m at Mar-2023 to HK$3.5m at Dec-2025) reflects the shift to order-backed, back-to-back trading.
Cash flow
FY2023 equity raised reflects the June 2022 Sunwah placing (which fell within FY Mar-2023). 9M2023 "additions to non-current assets" of HK$19.3m are predominantly right-of-use assets for the new Taikoo Place office lease. Buybacks began only in 1H2026: HK$6.91m (June 2026) plus HK$21.72m (2–10 July 2026). Source: AR2024 segment note; Interim 1H2026.
Ratio analysis
All ratios derived from 6.1 and 6.4. 9M2023 day-counts are annualised on a 275-day basis. ROIC is not computed because invested capital is dominated by cash and the business is net cash; net debt/EBITDA is not meaningful in a net-cash position. Debt/equity for FY2023 and 9M2023 matches the company's own reported gearing of 22.0% and 12.6%. FY2025 company-reported "gearing" of 10% uses a different definition (total liabilities less cash, divided by equity).
Commentary on ratios. Returns are the key weakness: FY2025 ROE of about 1.5% on a HK$358m equity base is far below any reasonable cost of equity, and 1H2026 annualises to a similar level. Asset turnover is high and rising, as one would expect from a trading house, but the spread earned on each turn has collapsed. The lengthening receivable cycle in FY2025 (to roughly 115 days from 56) is the most important working-capital development to monitor; 1H2026 ageing shows 98.8% of receivables within 90 days and no balances over 365 days, which is reassuring on credit quality (Interim 1H2026 note 10).
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Segment Overview
| Segment | Contents | Products / services | Status |
|---|---|---|---|
Trading of goods and commodities | (a) e-commerce & general trading; (b) raw-material trading for healthcare products in the PRC; (c) overseas distribution of YNBY Products | Plant extracts, packaging materials, sorbitol, steviol glycoside, lauric acid, glycerin; third-party branded consumer goods; Yunnan Baiyao medicines, toothpaste, general medicines, personal care | 100% of revenue since FY2024 |
Others | Marketing services, product registration, IP registration, OEM/ODM sourcing, overseas market-expansion services | Cost-plus professional services | Dormant: nil revenue FY2024, FY2025, 1H2026 ("capacity retained") |
Revenue by Segment
| Segment metric (HKD Mn) | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Trading of goods & commodities revenue | 179.05 | 452.91 | 569.54 | 754.93 | 1,108.18 |
Other services revenue | 0 | 0 | 9.20 | 0 | 0 |
Money lending revenue | 0.48 | 0 | 0 | 0 | 0 |
Total revenue | 179.53 | 452.91 | 578.74 | 754.93 | 1,108.18 |
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View Subscription PlansResults by Segment and Segment Margins & Growth (%)
| Segment metric | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Trading segment result (HKD Mn) | -609.37 | -122.49 | 40.99 | 54.45 | 39.33 |
Money lending segment result (HKD Mn) | -469.37 | 0 | 0 | 0 | 0 |
Other services segment result (HKD Mn) | 0 | 0 | 1.30 | 0 | 0 |
Trading segment margin (%) (derived) | -340.3 | -27.0 | 7.2 | 7.2 | 3.5 |
Trading revenue YoY growth (%) (derived) | — | 153.0 | — | 32.6 | 46.8 |
Trading share of total revenue (%) | 99.7 | 100.0 | 98.4 | 100.0 | 100.0 |
Results by Segment and Segment Margins & Growth (%) (1H2024–1H2026)
| Trading segment (HKD Mn) | 1H2024 | 1H2025 | 1H2026 |
|---|---|---|---|
Revenue | 362.30 | 396.44 | 762.54 |
Gross profit | 23.74 | 21.31 | 22.51 |
Segment result | — | 16.75 | 17.48 |
Gross margin (%) (derived) | 6.55 | 5.37 | 2.95 |
Group Entities
| Entity | Jurisdiction (as implied) | Role (as disclosed or inferred) | Source |
|---|---|---|---|
YNBY Limited | Not stated | Group subsidiary; Tang Ming and Liu Huaiyu are directors | AR2025 biographies |
YNBY Hong Kong Limited | Hong Kong | Trading / distribution | AR2025 |
Wan Long Xing Ye Commercial Trading (Hong Kong) Limited | Hong Kong | Legacy trading entity (Ban Loong era) | AR2025 |
China Future Int'l Company Limited | Not stated | Group subsidiary | AR2025 |
Ban Loong Pharmacy Limited | Hong Kong | Legacy pharmacy/healthcare | AR2025 |
BL Healthcare (Hong Kong) Limited | Hong Kong | Healthcare trading | AR2025 |
BL Healthcare (Overseas) Limited | Not stated | Overseas healthcare trading | AR2025 |
Wanma Technology Yunnan Co., Limited | PRC (Yunnan) | PRC operating entity; Tang Ming is legal representative | AR2025 |
YNBY Healthcare (Shenzhen) Limited | PRC (Shenzhen) | PRC operating entity; Liu Huaiyu is legal representative | AR2025 |
Wan Long Xing Ye Commercial Trading (Shenzhen) Limited | PRC | Disposed Dec 2023 (gain HK$137.5m) | FY2024 results |
Income Statement and Per-Share Data
| Metric | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Revenue (HKD Mn) | 179.53 | 452.91 | 578.74 | 754.93 | 1,108.18 |
Cost of sales (HKD Mn) | 175.18 | 430.00 | 529.14 | 688.92 | 1,056.87 |
Gross profit (HKD Mn) | 4.35 | 22.91 | 49.60 | 66.01 | 51.31 |
Other income, gains & losses (HKD Mn) | -19.03 | 0.40 | 135.97 | -0.11 | 1.93 |
Net ECL (charge)/reversal (HKD Mn) | -1,043.37 | -130.41 | 0.90 | 0.33 | — |
Selling & distribution costs (HKD Mn) | 3.74 | 13.23 | 5.14 | 8.60 | — |
Administrative expenses (HKD Mn) | 48.24 | 39.62 | 31.47 | 31.03 | 30.90 |
Operating profit/(loss) (HKD Mn) | -1,110.03 | -159.95 | 149.87 | 26.61 | 9.91 |
EBITDA (HKD Mn) (derived) | -1,100.31 | -154.38 | 154.12 | 31.65 | — |
Finance costs (HKD Mn) | 3.85 | 5.91 | 3.47 | 2.72 | 0.35 |
Pre-tax profit/(loss) (HKD Mn) | -1,113.88 | -165.90 | 146.41 | 23.88 | 9.56 |
Income tax (HKD Mn) | 3.44 | 2.96 | 2.67 | 5.76 | 4.98 |
Net profit/(loss) attributable (HKD Mn) | -1,117.31 | -168.87 | 143.74 | 18.12 | 4.58 |
Basic EPS (HK cents) | -17.33 | -2.51 | 2.11 | 0.27 | 0.06 |
Diluted EPS (HK cents) | -17.33 | -2.51 | 1.67 | 0.23 | 0.05 |
Dividend per share (HK cents) | 0 | 0 | 0 | 0 | 0 |
Margin Analysis (%)
| Metric (%) | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Gross margin | 2.42 | 5.06 | 8.57 | 8.74 | 4.63 |
Operating margin | -618.3 | -35.3 | 25.9 | 3.52 | 0.89 |
EBITDA margin | -612.9 | -34.1 | 26.6 | 4.19 | — |
Net margin | -622.4 | -37.3 | 24.8 | 2.40 | 0.41 |
Revenue growth YoY | — | 152.3 | — | — | 46.8 |
Income Statement and Per-Share Data (1H2024–1H2026)
| Metric (HKD Mn) | 1H2024 | 1H2025 | 1H2026 |
|---|---|---|---|
Revenue | 362.30 | 396.44 | 762.54 |
Gross profit | 23.74 | 21.31 | 22.51 |
Profit from operations | 5.70 | 4.35 | 5.84 |
Profit before tax | 4.05 | 4.16 | 5.72 |
Net profit attributable | 1.41 | 2.37 | 2.69 |
Basic EPS (HK cents) | 0.02 | 0.034 | 0.030 |
Diluted EPS (HK cents) | — | 0.027 | 0.028 |
Balance Sheet
| Metric (HKD Mn) | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Total assets | 321.75 | 320.04 | 390.23 | 367.98 | 592.63 |
Cash & cash equivalents | 203.86 | 159.00 | 199.32 | 212.48 | 198.01 |
Trade receivables | 47.92 | 72.98 | 110.34 | 114.87 | 348.78 |
Inventories | 6.79 | 50.29 | 39.75 | 7.02 | 3.52 |
Short-term debt (bank + CB current) | 13.76 | 13.62 | 30.68 | 2.16 | 0 |
Long-term debt (CB non-current) | 0 | 11.34 | 0 | 0 | 0 |
Total interest-bearing debt | 13.76 | 24.96 | 30.68 | 2.16 | 0 |
Lease liabilities | 8.62 | 2.85 | 13.79 | 10.37 | 8.12 |
Net debt/(net cash) excl. leases (derived) | -190.10 | -134.04 | -168.64 | -210.32 | -198.01 |
Total liabilities | 118.58 | 206.74 | 147.07 | 108.04 | 234.65 |
Total equity | 203.18 | 113.30 | 243.15 | 259.94 | 357.98 |
Goodwill & intangibles | 0 | 0 | 0 | 0 | 0 |
Net current assets (working capital) | 196.85 | 121.00 | 236.79 | 254.38 | 351.88 |
Cash Flow
| Metric (HKD Mn) | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Capex (additions to non-current assets) | 2.36 | 0.71 | 19.27 | 0.51 | — |
Dividends paid | 0 | 0 | 0 | 0 | 0 |
Share buybacks | 0 | 0 | 0 | 0 | 0 |
Equity raised (net) | — | 100.00 | — | — | 92.00 |
Returns & Leverage Ratios (%) and Financial Ratios (x)
| Ratio | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
ROE (%, avg equity) | — | -107.0 | — | 7.2 | 1.5 |
ROA (%, avg assets) | — | -52.6 | — | 4.8 | 1.0 |
Current ratio (x) | 2.71 | 1.62 | 2.75 | 3.54 | 2.54 |
Debt/equity (%) | 6.8 | 22.0 | 12.6 | 0.8 | 0 |
Interest coverage (x, EBIT/finance cost) | — | — | 43.2 | 9.8 | 28.3 |
Asset turnover (x, avg assets) | — | 1.41 | — | 1.99 | 2.31 |
Receivable days (derived) | 97 | 59 | 52 | 56 | 115 |
Payable days (derived) | 55 | 13 | 28 | 27 | 65 |
Inventory days (derived) | 14 | 43 | 21 | 4 | 1 |
Cash conversion cycle (days, derived) | 56 | 89 | 45 | 33 | 51 |
Region revenue (HKD Mn)
| Region revenue (HKD Mn) | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Hong Kong | 154.39 | 258.70 | 280.81 | 329.34 | — |
PRC (excl. Hong Kong) | 24.76 | 193.36 | 268.32 | 391.02 | — |
Other | 0.38 | 0.85 | 29.61 | 34.57 | — |
Total | 179.53 | 452.91 | 578.74 | 754.93 | 1,108.18 |
Region share (%)
| Region share (%) | FY2022 | FY2023 | 9M2023 | FY2024 |
|---|---|---|---|---|
Hong Kong | 86.0 | 57.1 | 48.5 | 43.6 |
PRC (excl. Hong Kong) | 13.8 | 42.7 | 46.4 | 51.8 |
Other | 0.2 | 0.2 | 5.1 | 4.6 |
Region growth (%)
| Region growth (%) | FY2023 vs FY2022 | FY2024 vs 9M2023 (reported basis) |
|---|---|---|
Hong Kong | 67.6 | 17.3 |
PRC | 680.9 | 45.7 |
Other | 123.9 | 16.8 |
Revenue by Region (%)
| Concentration metric (%) | FY2024 | FY2025 |
|---|---|---|
Largest customer share of sales | 24.2 | 29.7 |
Top-5 customers share of sales | 60.7 | 72.4 |
Largest supplier share of purchases | 27.9 | 32.8 |
Top-5 suppliers share of purchases | 67.9 | 74.0 |
Capital Markets
| Item | Value | Basis / source |
|---|---|---|
Last verified price | HK$0.250 (23 Jul 2026) | etnet real-time page |
Recent trading range (verified points) | HK$0.212–0.275 (buyback prices Jun–Jul 2026) | Interim 1H2026; etnet buyback record |
Reference points | HK$0.145 close on 2 May 2025; placing at HK$0.1161; Google Finance earlier 52-week range HK$0.092–0.25 (date of snapshot uncertain) | AR2025; Google Finance |
1-year / 3-year / 5-year total return | Directionally, the stock roughly doubled from May 2025 (HK$0.145) to mid-2026 (HK$0.25–0.275); it was suspended for 19 months (Jun 2022–Jan 2024) | Derived from verified points |
Shares outstanding ex-treasury | c.9,428m | Interim 1H2026 |
Market capitalisation | c.HK$2.36bn at HK$0.250 | Derived |
Enterprise value | c.HK$2.23bn (market cap – HK$145.0m cash + HK$16.2m debt, Jun 2026; excludes leases and July buyback cash outflow) | Derived |
Trailing 12M revenue | HK$1,474.3m (FY2025 – 1H2025 + 1H2026) | Derived |
Trailing 12M net profit | HK$4.90m | Derived |
P/E (trailing) | c.480x | Derived |
P/B | c.6.6x (equity HK$357.2m at Jun 2026) | Derived |
EV/Sales (trailing) | c.1.5x | Derived |
Analyst consensus | None — no sell-side coverage identified | — |
Capital return metric
| Capital return metric | FY2022 | FY2023 | 9M2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
Dividend per share (HK cents) | 0 | 0 | 0 | 0 | 0 |
Dividends paid (HKD Mn) | 0 | 0 | 0 | 0 | 0 |
Buybacks (HKD Mn) | 0 | 0 | 0 | 0 | 0 |
Capital Markets — Moody's / S&P / Fitch ratings
| Item | Status |
|---|---|
Moody's / S&P / Fitch ratings | None — not rated |
Outstanding debt (30 Jun 2026) | HK$16.16m floating-rate HK$ bank borrowings under supplier-finance arrangements, maturing within 60 days of drawdown |
Lease liabilities (30 Jun 2026) | HK$5.97m (HK$4.21m current, HK$1.76m non-current) |
Debt maturity profile | 100% of bank debt due within 60 days; no term debt or bonds outstanding |
Analyst Conclusions
Management guidance and consensus
Management provides only qualitative guidance: it expects to execute strategic initiatives, optimise operations and pursue new growth for sustainable and profitable growth in 2026, citing the renewed three-year distributorship and TCM policy support (Interim 1H2026). There is no quantitative guidance and no consensus estimate. On a simple run-rate, 1H2026 annualises to revenue of roughly HK$1.5bn and net profit of roughly HK$5–6m (derived, not a forecast).
Bull case
-
Parent-led globalisation becomes material. Yunnan Baiyao derives under 1% of c.RMB40bn revenue abroad; even modest overseas penetration channelled through YNBY International (which holds the ex-PRC distributorship to 2029) would transform a HK$1.1bn revenue base, and branded distribution carries structurally higher margins than ingredient trading — FY2024's 8.74% gross margin when YNBY product sales were stronger illustrates the mix effect.
-
Thai manufacturing and Osotspa unlock ASEAN. Local production via Greensville can shorten registration paths and lower landed costs, while HK$55m of ring-fenced ASEAN capital remains to be deployed by end-2027.
-
Operating leverage on a fixed cost base. With G&A flat at c.HK$31m, every additional percentage point of gross margin on c.HK$1.5bn of revenue adds roughly HK$15m of pre-tax profit — about three times FY2025 net profit.
Bear case
-
Spread compression is structural. Gross margin fell from 8.74% to 4.63% to c.2.95% while revenue grew; incremental volume appears to be bought with price, and the company has no proprietary product or pricing power in its core trading activity.
-
Valuation disconnected from fundamentals. At c.6.6x book and c.480x trailing earnings with ROE near 1.5%, the share price already discounts a successful transformation that, on the evidence of HK$3.8m of overseas YNBY Product purchases in FY2025, has barely begun.
-
Minority-shareholder disadvantage. A 72.8% controller, extensive related-party dealing, no distributable reserves for dividends, a thin 27% public float and a history of governance failure limit liquidity and constrain value accrual to minorities.
Catalysts and monitorables (next 12 months)
| Monitorable | Why it matters | Timing |
|---|---|---|
| FY2025 audit opinion status / FY2026 opinion | Confirms removal of legacy qualification | AR2026 (Mar–Apr 2027) |
| Gross margin trajectory in 2H2026 | Tests whether 1H2026's c.2.95% is a floor | FY2026 results, c.Mar 2027 |
| Utilisation of 2026 Framework Agreement caps, especially overseas YNBY Products | Proxy for real progress on the strategic mandate | Annual CCT disclosure |
| ASEAN product registrations and launches | Unlocks the HK$55m ASEAN budget | Ongoing |
| Babi Mild China launch metrics | First inbound branded revenue | Not scheduled |
| Receivable days and supplier-finance usage | Working-capital and credit risk | Each reporting period |
| Further buybacks or capital reorganisation enabling dividends | Shareholder returns | Ad hoc |
| Any profit alert under Listing Rule 13.09 | Early earnings signal | Typically Feb and Aug |
Analyst verdict
YNBY International has completed the hard part of its rehabilitation. The company that, as Ban Loong Holdings, lost HK$1.1bn in FY2022 amid vanished records and impaired loans now has clean operations, a credible Yunnan Baiyao-appointed management team, net cash, a lean cost base and a renewed three-year mandate to distribute one of China's most recognised health brands outside the mainland. Revenue has grown more than six-fold in under four years and crossed HK$1.1bn in FY2025.
But the quality of that growth is poor. Nearly all revenue is commodity-like trading, much of it with or for the parent, and gross margin has more than halved in eighteen months, to about 3% in 1H2026. Profits of HK$4–5m a year represent a return on equity near 1.5%, and the strategic engine — overseas sales of Yunnan Baiyao products — remains embryonic: purchases of YNBY Products for overseas resale were HK$3.8m against a HK$200m cap in FY2025, and the ASEAN rollout has slipped to 2027. The Thai toothpaste and Osotspa partnership are genuine firsts, but neither has yet shown up in disclosed numbers.
At roughly HK$2.4bn market value, investors are paying around 6.6x book and several hundred times earnings for an option on the parent's globalisation. That option is real — Yunnan Baiyao earns under 1% of its revenue abroad and has chosen this vehicle — but its value accrues unevenly, given a 72.8% controller, extensive related-party dealings, a thin float and a structural inability to pay cash dividends without a capital reorganisation.
Verdict: a governance turnaround that has succeeded, attached to a business model that has not yet proven it can earn an economic return. Evidence of rising branded overseas revenue and a recovery in gross margin towards the FY2024 level of c.8–9% would be required before the current valuation could be considered fundamentally supported. Until then, the position is best characterised as speculative and catalyst-dependent.
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View Subscription PlansExecutive Leadership
Board of Directors
| Name | Role | Appointed | Age (AR2025) | Education | Prior / concurrent roles | Source |
|---|---|---|---|---|---|---|
Dong Ming | Chairman, Executive Director; Chair of Nomination Committee | ED 17 Jan 2022; Chairman 11 Feb 2022 | 49 | DBA, Singapore Management University (2025); BEng Industrial Automation, Northeastern University (1999) | CEO of Yunnan Baiyao Group since Mar 2021, Vice-Chairman since Aug 2024; Huawei 1999–2021 incl. VP CIS region and GM Beijing branch; also ED of Shanghai Pharmaceuticals | AR2025; SPH announcement Dec 2025 |
Tang Ming | Chief Executive Officer, Executive Director; Remuneration Committee member | CEO 15 Apr 2022; ED 19 Aug 2022 | 51 | MBA, Cornell University; BEng Electronic Engineering, Tianjin University of Technology | Huawei 2016–2022: VP Intelligent Automotive Solution BU (Europe), GM Enterprise consulting (Europe); 27+ years international business development | AR2025 |
Liu Huaiyu | Executive Director; CFO; Company Secretary | CFO Jun 2022; Co Sec Aug 2022; ED 16 May 2025 | 54 | MBA, Cornell; BEcon, Shenzhen University; FCPA (HKICPA), ICAEW | CFO V1 Group (2018–19); EVP Chiho Environmental (2016–17); CFO Xinyuan Real Estate (NYSE) (2015–16); independent director BitFuFu (NASDAQ) | AR2025 |
He Tao | Non-Executive Director; Audit Committee member | 16 May 2025 | 50 | BMgmt, Chongqing Univ. of Posts & Telecom; MAcc, Southwestern Univ. of Finance & Economics; CMA | SVP Yunnan Baiyao Group since Aug 2024; director & deputy GM Yunnan Yuntianhua (2021–24); China Telecom Yunnan finance/marketing roles | AR2025 |
Cao Yonggang | Non-Executive Director | 22 May 2026 | — | — | Biography set out in AGM circular of 24 Apr 2026 | AGM poll results 22 May 2026 |
Wong Hin Wing, MH, JP | INED; Chair of Audit Committee | 21 Nov 2023 | 63 | EMBA, CUHK; FCPA, FCA, FCCA | Partner, Hermitage Capital; co-founder Silk Road International Capital; INED of CPIC (from Jan 2026), InnoScience, Kingmaker, Zhaoke Ophthalmology | AR2025 |
Dr Cheung Hoi Yu, JP | INED; Chair of Remuneration Committee | 21 Nov 2023 | 71 | BSc, MSc, PhD, University of Saskatchewan | Professor, Peking University Neuroscience Research Institute; founder HKBIO; HKEX Biotech Advisory Panel; INED Medtide (from Jun 2025) | AR2025 |
Dr Cecilia Wai Bing Pang, BBS | INED | 21 Nov 2023 | 70 | BSc Manitoba; BSc (Hons), PhD Monash | Biotechnology Director, HK Innovation & Technology Commission for 20 years | AR2025 |
Directors' Remuneration
| Attribute | Status (Aug 2026) |
|---|---|
Board size | 8 (3 ED, 2 NED, 3 INED) |
Independence | 37.5% INEDs — meets HKEX one-third minimum, no excess |
Chair/CEO separation | Yes (Dong Ming / Tang Ming) |
Gender diversity | 1 female director (12.5%) |
Audit Committee | Wong Hin Wing (Chair), He Tao, Dr Pang, Dr Cheung |
Remuneration Committee | Dr Cheung (Chair), Tang Ming, Dr Pang, Wong Hin Wing |
Nomination Committee | Dong Ming (Chair), Dr Pang, Dr Cheung, Wong Hin Wing |
Board meetings FY2025 | 6 (FY2024: 4) |
Share option scheme | None since expiry on 29 Sep 2023 |
Directors' Remuneration (FY2024–1H2026)
| Compensation metric (HKD Mn) | FY2024 | FY2025 | 1H2025 | 1H2026 |
|---|---|---|---|---|
Total staff costs | 17.20 | 20.62 | 8.65 | 7.99 |
Directors' emoluments (aggregate) | — | — | 4.11 | 2.41 |
Board & Management Changes
| Date | Change | Context |
|---|---|---|
17 Jan / 11 Feb 2022 | Dong Ming joins; becomes chairman | Post-offer board reconstitution by Yunnan Baiyao |
11 Feb 2022 | Liu Zhouyang (ED) and Qian Yinghui (NED) appointed | Yunnan Baiyao nominees |
15 Apr 2022 | Tang Ming appointed CEO | New management to rebuild trading strategy |
Jun–Aug 2022 | Liu Huaiyu appointed CFO, then Company Secretary | Finance rebuild during suspension |
19 Aug 2022 | Tang Ming ED; Huang Bin NED | — |
21 Nov 2023 | Three new INEDs | Part of HKEX resumption guidance (Rules 3.10, 3.10A, 3.21 etc.) |
16 May 2025 | Liu Zhouyang and Qian Yinghui retire; Liu Huaiyu (ED) and He Tao (NED) appointed | Refresh of parent nominees |
22 May 2026 | Huang Bin retires; Cao Yonggang appointed NED | Rotation |
Major Shareholders
| Holder | Shares (m) | % of issued (post-Feb 2026) | Notes | Source |
|---|---|---|---|---|
Yunnan Baiyao Group Co., Ltd. (direct) | 1,908.03 | 20.0 | Beneficial owner | AR2025; derived |
Shanghai International Trust Corp. (trustee for Yunnan Baiyao) | 1,937.98 | 20.3 | Conversion shares issued 27 Feb 2026 | Conversion announcement |
Yunnan Baiyao Group combined direct + trust | 3,846.01 | 40.32 | As reported after conversion | Market report of 27 Feb 2026 announcement |
Yunbaiyao Hong Kong Co., Limited (via 雲南白藥集團（海南）有限公司) | 3,101.91 | 32.52 | Shares acquired via Jan 2022 general offer | AR2025; conversion announcement |
Total Yunnan Baiyao concert group | 6,947.92 | 72.84 | — | Derived |
Sunwah Great Wall Group (Luo Ga) | 351.76 | 3.69 | — | AR2024; derived |
Public float | — | 27.16 | Above 25% minimum; c.34.1% at 31 Dec 2025 pre-conversion | Conversion announcement; AR2025 |
Treasury shares | 109.94 | 1.15 | Repurchased Jun–Jul 2026 | Interim 1H2026 |
Directors / insiders | 0 | 0 | No director interests at 31 Dec 2025 | AR2025 |
Competitive Landscape
Competitors by Segment
| Arena | Named competitors | Relative positioning of YNBY International |
|---|---|---|
Overseas oral care (Yunnan Baiyao toothpaste in SE Asia and beyond) | Colgate-Palmolive; Haleon (Sensodyne, Parodontax); Procter & Gamble (Crest, Oral-B); Unilever (Pepsodent, Closeup); Lion Corporation; Darlie (Hawley & Hazel); LG H&H (Perioe) | Brand is No.1 in China (per AR2025) but a new entrant abroad; no disclosed overseas share |
International TCM / proprietary Chinese medicine distribution | Beijing Tong Ren Tang Chinese Medicine (3613.HK); China Traditional Chinese Medicine (0570.HK); Guangzhou Baiyunshan Pharmaceutical (0874.HK); Eu Yan Sang (private); Shanghai Pharmaceuticals' overseas channels | Distinctive in holding an exclusive/general overseas mandate for a top TCM brand; scale small |
Healthcare/cosmetics raw-material trading & cross-border e-commerce supply | Specialist ingredient distributors (e.g., Brenntag, IMCD, Univar globally); numerous PRC and HK trading houses; platform self-operated import businesses (JD Worldwide, Tmall Global) | Commodity-like; advantage limited to related-party demand from Yunnan Baiyao |
Peer Comparison FY2025
| Benchmark metric | YNBY International FY2025 | Yunnan Baiyao Group (parent) |
|---|---|---|
Revenue | HK$1,108m | c.RMB40bn (FY2024, per YNBY announcement 30 Jun 2025) |
Revenue growth | 46.8% | — |
Gross margin | 4.63% | — |
Net margin | 0.41% | — |
R&D intensity | Not disclosed (immaterial) | — |
Overseas revenue share | c.4.6% "Other" (FY2024) | Under 1% of revenue outside mainland China (FY2024) |
