Befar Group (601678) investor relations material

Executive summary

• H1 2026 unaudited revenue was RMB 8.26 billion, up 12.32% YoY; net profit attributable to shareholders was RMB 343.59 million, up 208.25% YoY.

• Profit recovery reflected higher prices for major products; new facilities at Bin Hua New Materials contributed to revenue growth through higher sales volumes.

Financial highlights

• Revenue was RMB 8,259,685,676.01; operating profit RMB 472,699,356.07; total profit RMB 486,027,519.61; consolidated net profit RMB 358,116,785.63.

• Net profit attributable to shareholders was RMB 343,592,573.58 versus RMB 111,466,794.55 YoY; adjusted for non-recurring items, net profit was RMB 286,394,480.65 versus a RMB 13,275,200.33 loss.

• Revenue rose 12.32% YoY while operating costs rose 7.14%; research and development expense increased 34.45% to RMB 81,610,530.16.

• Operating cash flow was RMB 908,654,710.03, down 30.72% YoY, amid more credit-letter sales settlements and lower VAT refunds; investing and financing cash flows were negative RMB 247.93 million and RMB 579.98 million.

Outlook and guidance

• H2 priorities include accelerating the 240,000-tonne/year polyether project, completing project handover at the Yangxin electronic chemicals base by end-November, and connecting some source-grid-load-storage wind capacity by year-end.

• Plans call for stable full-load production, stronger market timing and strategic-customer coordination, and supply-chain cost reduction; target major product output remains stable.

• R&D priorities include high-melt-index PPS, phenoxy resin, G5 electronic-grade isopropyl alcohol, and commercialization of phenol and ECH technologies.