Anhui Conch Material Technology (2560) investor relations material

Executive summary

• H1 revenue rose 11.65% YoY to RMB1,207.24m, while profit attributable to equity shareholders fell 23.23% to RMB40.20m amid margin pressure and lower other income.

• Growth came from concrete admixtures, overseas activity and new fine chemicals; Ningbo’s 60,000-ton epoxy-derivative project entered commercial production.

Financial highlights

• Revenue was RMB1,207.24m, up 11.65% YoY; gross profit declined 5.57% to RMB200.88m and gross margin fell to 16.64% from 19.67%.

• Operating profit fell to RMB68.46m from RMB84.68m; profit before tax declined 22.15% to RMB57.13m.

• Net profit was RMB47.92m, down 21.49%; attributable net profit was RMB40.20m, down 23.23%; basic EPS was RMB0.07 versus RMB0.09.

• Other net income fell 37.98% to RMB11.06m, mainly due to lower government grants; finance costs were RMB11.33m.

Outlook and guidance

• Strategy prioritizes stabilizing the domestic base, overseas growth, technology-led development and diversification into surfactants, polyether polyols and ethylene carbonate.

• Surfactant sales continued steadily; polyether polyols completed initial deliveries, while ethylene carbonate completed sample validation and was nearing bulk sales.

• Priorities include widening new-product sales channels, releasing polyether-polyol capacity and commencing bulk ethylene-carbonate sales after customer validation.