Shandong Hualu-Hengsheng Chemical (600426) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached RMB 17.16 billion, up 8.87% year-over-year, with net profit attributable to shareholders at RMB 2.35 billion, a 49.98% increase year-over-year.

• The company maintained full production and sales during market upswings and consolidated its low-cost advantage during downturns.

• Major investments included ongoing upgrades to the gasification platform and increased R&D, with 19 patent applications and 10 authorizations.

• No significant changes in core competitiveness compared to 2025.

Financial highlights

• Operating income: RMB 17.16 billion (+8.87% YoY); net profit attributable to shareholders: RMB 2.35 billion (+49.98% YoY).

• Operating cash flow: RMB 2.69 billion (+15.46% YoY).

• Basic and diluted EPS: RMB 1.108 (+49.93% YoY).

• Gross margin improved due to both higher sales volume and prices for key products.

• R&D expenses surged 94.53% YoY, reflecting increased investment in innovation.

Outlook and guidance

• The company plans to deepen market penetration, accelerate project construction, and maintain a dual-core operational structure to reinforce profitability.

• Will continue to focus on cost reduction, strategic cooperation, and green, low-carbon transformation in line with national policy.