L & M CHEMICAL (00746) announced its annual performance, with a net profit of HKD 558 million, a year-on-year increase of 15.75%.

L & M CHEMICAL (00746) released its annual performance as of December 31, 2025. The group recorded a revenue of HK$3.755 billion, a decrease of 4.96% compared to the previous year. The net profit for the year was HK$558 million, an increase of 15.75%, with a basic earnings per share of 67.7 Hong Kong cents. The proposed final dividend is 14 Hong Kong cents per share. In terms of the chemical business, the domestic manufacturing industry remained cautious, and market sentiment was subdued. Most of the group's chemical products experienced slight price reductions. However, the group benefited from significant decreases in energy costs and raw material prices, resulting in an increase in gross profit. In the property business, rental income from projects was around HK$3.3 million. In 2025, with weak domestic consumption growth, export restrictions due to tariffs, and oversupply in certain industries, the group's chemical product prices (especially methane chloride) faced increasing pressure from the supply side and insufficient demand support, leading to significant decreases. Looking back on the year, the group maintained stability in its existing product lines and full production capacity, while making timely repairs and enhancements to production lines to improve efficiency and processes, gaining operational advantages. This has laid a solid foundation for the group to capture market demand and future development opportunities.