Yip's Chemical Holdings Limited provided earnings guidance for the six months ended 30 June 2023. For the period, the net profit of the Group for the 2023 Interim Period is expected to be substantially lower than that for the six months ended 30 June 2022 (the "2022 Interim Period") by over 80% which is mainly attributable to the following: As the Group's effective interests in the solvents business had been reduced by 51% from 75% to 24% upon the completion of the Group's disposal of such interests to PAG in 2022, the financial results of entities within the solvents business are no longer consolidated into the financial results of the Group but shared to the Group as associates. Hence profit contribution of the solvents business as associates of the Group in the 2023 Interim Period was significantly less as compared to the 2022 Interim Period.

Net exchange loss (of which about two-third was unrealised exchange difference from revaluation of foreign currency balances) of approximately HKD 23 million was recorded in the 2023 Interim Period due to a depreciation of Renminbi of about 3.75% during the first half year of 2023 as compared to net exchange gain, after offsetting loss from change in fair value of foreign exchange forward contracts (including those from the solvents business), of approximately HKD 14 million in the 2022 Interim Period. Revenue and operating profit of the Group's businesses in the 2023 Interim Period were adversely affected by the slower-than-expected post-COVID recovery of economy in Mainland China. However, there has been notable improvement in gross profit margin of the continuing operations of the Group in the 2023 Interim Period, especially in its coatings business, as compared to the 2022 Interim Period.