Lygend Resources & Technology (2245) H1 2026 earnings summary

Executive summary

• H1 2026 revenue rose 39.8% YoY to RMB25,364.0 million; profit attributable to owners increased 91.9% to RMB2,737.7 million.

• Growth reflected KPS Phase II RKEF ramp-up, higher nickel prices and trading profit, and tighter production cost control.

• HPAL operated at full capacity; all 12 KPS lines entered production in May and reached full capacity on 1 August 2026.

Financial highlights

• Gross profit rose 79.6% to RMB6,430.7 million; gross margin expanded to 25.4% from 19.7%.

• Profit for the period increased 95.0% to RMB4,384.4 million; net margin rose to 17.3% from 12.4%.

• Profit before tax rose 101.2% to RMB5,552.8 million; income tax expense was RMB1,168.5 million, including RMB551.9 million of Pillar Two taxes.

• Basic and diluted EPS was RMB1.76, versus RMB0.92 in H1 2025.

• Operating cash flow was RMB1,930.8 million, versus RMB2,770.4 million in H1 2025.

Outlook and guidance

• Priorities include optimizing product mix and plant operations, improving recovery rates, advancing projects, and deepening lean management to lower unit fixed costs.

• Plans include further MHP processing into battery-grade nickel and cobalt sulfates and high-purity electrodeposited nickel and cobalt, and expanding global nickel resource channels.

• The hydrometallurgical slag resource-utilization project advanced through execution planning and equipment procurement; it aims to convert slag into iron products and rebar.

• Management cited projected global nickel demand of 4.936 million metal tons in 2029.