Zhejiang Huayou Cobalt (603799) Q2 2026 earnings summary

Executive summary

• Achieved record operating income of RMB 55.57 billion, up 49.39% year-over-year, and net profit attributable to shareholders of RMB 3.51 billion, up 29.38% year-over-year, marking the best semi-annual performance in company history.

• Significant growth in new energy materials: ternary cathode materials shipments up 93%, ternary precursors up 94%, lithium carbonate up 17% year-over-year.

• R&D investment doubled to RMB 1.12 billion, with 53 new patents and 16 new standards, including a breakthrough international standard.

• Expanded global industrial layout with major projects in Indonesia, Zimbabwe, Ghana, and Hungary, enhancing resource self-sufficiency and international manufacturing capabilities.

• Advanced ESG governance, included in S&P Global’s Sustainability Yearbook 2026, and maintained strong community engagement and social responsibility initiatives.

Financial highlights

• Operating income: RMB 55.57 billion, up 49.39% year-over-year.

• Net profit attributable to shareholders: RMB 3.51 billion, up 29.38% year-over-year.

• Net cash flow from operating activities: RMB 2.15 billion, up 32.76% year-over-year.

• Basic EPS: RMB 1.86, up 15.53% year-over-year.

• R&D expenses: RMB 1.12 billion, up 109.21% year-over-year.

Outlook and guidance

• Continued focus on high-quality growth, industrial integration, and international expansion.

• Ongoing investments in upstream resources and downstream manufacturing to secure supply chain and cost advantages.

• Anticipates further growth in high-nickel and solid-state battery materials, with new projects expected to come online by end of 2026.