Anhui Jinyan Kaolin New Materials (2693) H1 2026 earnings summary

Executive summary

• H1 2026 revenue fell 19.1% YoY to RMB103.9m and profit for the period fell 64.8% to RMB8.0m amid weaker downstream demand, competition and higher administrative expenses.

• Integrated mining, processing and product manufacturing continued; mine resources were estimated at 18,251 kt and reserves at 5,725 kt, with ~15 years of mine life at 400 kt annual output.

Financial highlights

• Revenue was RMB103.9m vs RMB128.5m; gross profit was RMB33.5m vs RMB45.8m, and gross margin declined to 32.2% from 35.7%.

• Operating profit was RMB11.7m vs RMB28.8m; profit before tax was RMB8.4m vs RMB25.8m; profit for the period was RMB8.0m vs RMB22.7m.

• Basic and diluted EPS was RMB0.08 vs RMB0.31; income tax expense was RMB0.4m vs RMB3.1m, down 87.1%.

• Cost of sales decreased 14.9% to RMB70.4m; administrative expenses rose to RMB15.0m from RMB10.8m, while selling and distribution expenses remained RMB1.7m.

Outlook and guidance

• A refractory mullite line with designed annual capacity of 40,000 tonnes is expected to start operation after commissioning in H2 2026; process upgrades aim to improve quality, efficiency and margins.

• A kaolin fine-powder workshop with designed annual capacity of 60,000 tonnes is planned, targeting applications including glass fiber and electrical porcelain.

• R&D priorities include higher-end precision casting surface materials, kaolin fine-powder purity, intelligent sorting and mining, and synthetic and engineering fiber materials.