China Risun Group (1907) H1 2026 earnings summary

Executive summary

• Revenue rose 5.2% year-over-year to RMB21,855.9 million, with net profit surging 376.0% to RMB244.4 million and basic EPS up 736.8% to RMB4.77 cents, driven by higher product prices and improved segment margins.

• Interim dividend declared at RMB1.44 cents per share, up from RMB0.20 cents last year, representing over 30% of net profit attributable to owners.

• Major acquisition of 14.5% in Binhai Energy, expanding into new energy battery materials and consolidating Binhai as a subsidiary.

• Production volumes for coke, refined chemicals, and high-purified hydrogen declined year-over-year, while lithium battery anode materials output increased 63.9%.

Financial highlights

• Gross profit increased 37.7% year-over-year to RMB2,311.3 million, with gross margin rising to 10.6% from 8.1%.

• EBITDA margin reached 9.8%, up from 8.9% last year.

• Net profit margin improved to 1.1% from 0.2% year-over-year.

• Return on equity rose to 3.4% from 0.4%.

• Total borrowings increased 18.5% to RMB41,401.1 million as of June 30, 2026, with gearing ratio at 78.5%.

• Net cash from operating activities was RMB2,526.7 million, up from RMB1,861.3 million.

Outlook and guidance

• Focus on expanding silicon-carbon and porous carbon material production lines, integrated anode material projects, and hydrogen energy infrastructure in H2 2026.

• Plans to further develop hydrogen energy infrastructure and battery materials, leveraging cost and supply chain advantages.

• Strategic goal to enhance market share in coke, refined chemicals, and new energy products through M&A, joint ventures, and new project launches.

• Continued R&D and production of high-value refined chemicals and expansion of hydrogen energy supply chain.

• Plans to increase coke sales and implement price increments as market conditions allow.