China Sanjiang Fine Chemicals Company (2198) H1 2026 earnings summary

Executive summary

• Net profit attributable to equity holders surged 117.9% year-over-year to RMB656.1 million, with basic EPS up 118.6% to RMB56.86 fens.

• Revenue increased 5.4% year-over-year to RMB9,599.5 million, driven by higher sales and improved product mix.

• Gross profit margin doubled to 10.3% from 5.1% year-over-year, reflecting margin expansion in key products.

• Interim dividend of HK10.0 cents per share declared, with a progressive payout policy.

Financial highlights

• Gross profit rose 113.1% year-over-year to RMB990.2 million.

• Net cash flows from operating activities were RMB741.2 million, down from RMB836.6 million year-over-year.

• Cash and cash equivalents increased to RMB1,072.8 million as of 30 June 2026.

• Gearing ratio improved to 51.2% from 52.5% year-over-year.

• Administrative expenses decreased to RMB105.6 million from RMB125.6 million year-over-year.

Outlook and guidance

• Downstream demand is expected to gradually recover, supported by policy and export opportunities, though unevenly.

• Limited new capacity and low inventories should support product prices.

• The group will focus on cost control, deleveraging, and high value-added products.