Sichuan Yahua Industrial Group (002497) Q2 2026 earnings summary

Executive summary

• Revenue for H1 2026 reached ¥6.71 billion, up 96.02% year-over-year, with net profit attributable to shareholders at ¥1.22 billion, a 795.48% increase year-over-year.

• Lithium business drove growth, with lithium salt product sales and average prices both rising sharply; lithium segment revenue rose 179.36% year-over-year to ¥4.93 billion.

• Civil explosives segment revenue grew 6.72% year-over-year to ¥1.56 billion, maintaining industry leadership despite sector-wide profit pressure.

• Major acquisition of 51% of Longhai Company completed, expanding explosives production capacity.

Financial highlights

• Operating income: ¥6.71 billion (+96.02% YoY); net profit attributable to shareholders: ¥1.22 billion (+795.48% YoY).

• Gross margin for lithium segment: 32.89% (+31.26ppt YoY); civil explosives: 31.35% (-4.55ppt YoY).

• Basic and diluted EPS: ¥1.0634 (vs. ¥0.1178 YoY).

• Net cash flow from operating activities: -¥413 million (vs. -¥346 million YoY).

• Total assets: ¥17.59 billion (+18.02% from year-end 2025); net assets: ¥12.17 billion (+13.44%).

Outlook and guidance

• Lithium market expected to remain volatile but supported by strong demand from EV and energy storage sectors.

• Civil explosives sector faces continued margin pressure from raw material costs and industry consolidation.

• Company will continue to expand lithium resource base, optimize cost structure, and pursue international growth.