Shenzhen Dynanonic (300769) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥10.40 billion, up 167.92% year-over-year, with net profit attributable to shareholders at ¥455 million, reversing a loss in the prior year.

• Core business is the R&D, production, and sales of lithium-ion battery materials, mainly nano lithium iron phosphate (LFP), lithium manganese iron phosphate (LMFP), and lithium supplement enhancers, serving the booming NEV and energy storage sectors.

• Industry tailwinds include robust growth in NEV and energy storage markets, with LFP batteries maintaining dominant market share and strong demand for high-performance cathode materials.

• Product mix optimized with high-density LFP and LMFP ramping up, and lithium supplement enhancers achieving over 300% shipment growth year-over-year.

Financial highlights

• Operating income: ¥10.40 billion, up 167.92% year-over-year.

• Net profit attributable to shareholders: ¥455 million, compared to a loss of ¥391 million in H1 2025.

• Gross margin for cathode materials improved by 12.77 percentage points to 11.28%.

• Basic and diluted EPS: ¥1.63, up from -¥1.41 year-over-year.

• Total assets: ¥21.83 billion, up 29.85% from year-end 2025.

• Net cash from operating activities: -¥1.24 billion, reflecting increased material purchases and working capital needs.

Outlook and guidance

• Continued focus on product innovation, cost reduction, and capacity expansion to capture NEV and energy storage growth.

• Two major integrated material projects launched in Yunnan, with planned investments of ¥2.4 billion and ¥6.3 billion, targeting 50,000 tons/year new cathode capacity.

• Planned equity financing up to ¥2.9 billion to fund new projects and working capital.