Shandong Fengyuan Chemical Co Ltd

The 15th Five-Year Plan for the Development of the New Battery Industry, jointly formulated by seven ministries including the Ministry of Industry and Information Technology, the National Development and Reform Commission, and the Ministry of Transport, has been officially released. It proposes that by 2030, the scale of China's new battery industry will achieve steady growth, and all-solid-state batteries will initially achieve large-scale application. Boosted by this news, the battery sector rose 3.03% intraday on October 8, with Jin Yinhe up 19.99%, Shangshui Intelligent up 14.92%, Liqi Intelligent up 11.90%, Fengyuan shares up 10.02%, and Xiongtao shares up 10.02%. A research report from Changjiang Securities pointed out that global lithium battery shipments are expected to exceed 3,000 gigawatt-hours in 2026, a year-on-year increase of more than 30%, with energy storage battery growth reaching 50% to 60%. In the fourth quarter of 2025, industry capacity utilization had already approached 80%. A research report from Caitong Securities pointed out that the mass production timeline for all-solid-state batteries is clearly concentrated between 2026 and 2028, and the pace of industrialization is accelerating.

Fengyuan Co. disclosed its 2026 semi-annual report on August 26. In the first half of the year, it achieved total operating revenue of 3.278 billion yuan, up 353.04 percent year on year, and net profit attributable to the parent company of 146 million yuan, swinging from a loss to a profit compared with the same period last year. Net profit after deducting non-recurring items was 97.251 million yuan, also turning from a loss to a profit. Net cash flow from operating activities was negative 14.8781 million yuan, compared with 11.0329 million yuan in the same period last year. Basic earnings per share were 0.52 yuan, and the weighted average return on equity was 15.68 percent, up 31 percentage points year on year. The company said that during the reporting period, total non-recurring gains and losses were 48.6804 million yuan, of which government subsidies included in current profit or loss were 49.8006 million yuan.

Fengyuan Shares announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 140 million and 200 million yuan, turning around from a loss in the same period last year. The change in performance is mainly due to the continued upward trend in the global new energy industry, increased downstream demand for lithium battery cathode materials, a significant rise in the company's product output, sales volume, and capacity utilization, cost optimization through economies of scale, and government subsidy income. Data shows that the company's net profit for the second quarter is expected to be between 63 million and 123 million yuan, while net profit for the first quarter was 77 million yuan. Based on this, the expected quarter-on-quarter change in net profit for the second quarter ranges from negative 18 percent to 59 percent.