China Sunsine Chemical Holdings (QES) H1 2026 earnings summary

Executive summary

• 1H2026 revenue rose 19% YoY to RMB2,007.8m and net profit increased 5% to RMB254.3m; record half-year sales volume reached 119,959 tonnes, up 9.4%.

• Higher ASP and volume supported improved gross margin despite geopolitical uncertainty and intensified competition in China's rubber chemicals industry.

Financial highlights

• Gross profit increased 22% to RMB506.0m; gross margin expanded 0.6 percentage points to 25.2% from 24.6%.

• Profit before tax rose 4% to RMB319.3m and profit after tax increased 5% to RMB254.3m.

• Other losses, net were RMB47.8m versus a gain of RMB4.4m, mainly due to FX losses as the RMB appreciated against the USD; higher R&D expenses also weighed on results.

• ASP rose 9% YoY to RMB16,586 per tonne from RMB15,195, partly reflecting higher raw-material prices.

• Operating cash flow was RMB78.3m, down from RMB431.5m, as higher inventory and receivables absorbed cash.

Outlook and guidance

• Operating conditions are expected to remain challenging amid geopolitical uncertainty, volatile raw-material prices and intense competition; long-term prospects remain positive.

• Strategy emphasizes sales-and-production equilibrium, flexible pricing, innovation, operational excellence, environmental protection and capacity expansion.

• FY2026 annual rubber chemical capacity is expected to reach 272,000 tonnes, up 7% YoY.