Cathay Biotech (688065) Q2 2026 earnings summary

Executive summary

• Achieved revenue of RMB 1.90 billion in H1 2026, up 13.73% year-over-year; net profit attributable to shareholders was RMB 372.73 million, up 20.75% year-over-year.

• Core business continued to expand, with new polyester polyol business contributing to growth.

• Completed acquisition of Anhui Weichidu Technology, enhancing downstream product layout.

• R&D investment reached RMB 126.66 million, 6.67% of revenue.

Financial highlights

• Operating income: RMB 1.90 billion, up 13.73% year-over-year.

• Net profit attributable to shareholders: RMB 372.73 million, up 20.75% year-over-year.

• Operating cash flow: RMB 750.60 million, up 121.21% year-over-year.

• Basic and diluted EPS: RMB 0.52, up 10.64% year-over-year.

• Gross margin improved, with main business and new product lines driving profitability.

Outlook and guidance

• Ongoing expansion of long-chain dicarboxylic acid and bio-based polyamide capacity.

• Continued focus on R&D and AI-driven innovation to maintain industry leadership.

• Strategic investments in downstream applications and ecosystem development.