China Treasures New Materials (2439) H1 2026 earnings summary

Executive summary

• H1 revenue fell 5.5% YoY to RMB145.5m and profit fell 47.8% to RMB18.7m, reflecting weaker demand and higher depreciation and operating expenses.

• Biodegradable products contributed 90.4% of revenue; the Changchun production base began gradual operations and new biodegradable products were launched.

Financial highlights

• Revenue was RMB145.5m versus RMB153.9m; gross profit fell 11.8% to RMB53.2m from RMB60.3m.

• Profit before tax declined to RMB23.4m from RMB42.4m; net profit was RMB18.7m versus RMB35.8m, down 47.8%.

• Administrative and other operating expenses rose 85.4% to RMB26.7m, mainly due to new-base depreciation and product promotion expenses.

• Net operating cash flow was RMB68.9m versus RMB68.0m; total comprehensive income was RMB20.0m versus RMB37.5m, and owners’ attributable profit was RMB18.5m versus RMB35.5m.

• Basic and diluted EPS was RMB1.72 cents versus RMB3.55 cents; no interim dividend was recommended.

Outlook and guidance

• PRC policy support and environmental awareness are expected to underpin biodegradable-plastics demand; the Ecological and Environmental Code took effect on 15 August 2026, strengthening restrictions on disposable non-biodegradable plastics.

• Priorities include optimising capacity, expanding products and sales channels, strengthening R&D and controlling costs; new R&D projects are expected to start in H2 2026.