Xinyaqiang Silicon Chemistry Co Ltd

Silicone leader Dongyue Silicone Materials issued a results forecast, projecting net profit for the first three quarters of 547 million to 567 million yuan, a year-on-year increase of 19,050% to 19,750%, igniting the silicone sector. Boosted by the news, silicone-related stocks rallied against the market in early trading on October 9, with Dongyue Silicone Materials surging by the 20% daily limit, Chenguang New Materials hitting the daily limit, and Xinyaqiang, Guibao Science and Technology, and Hoshine Silicon following higher. Dongyue Silicone Materials said that in the first three quarters of 2026, thanks to an improved market environment and industry supply-demand balance, prices of its main products rose, while industrial silicon procurement costs fell year on year, lowering overall unit production costs and lifting gross margins. China's domestic silicone market has rebounded since bottoming out in the fourth quarter of 2025, and DMC prices have climbed steadily in 2026. Data from SunSirs shows that as of October 8, DMC was quoted at 14,400 yuan per tonne, up more than 10% over the past 60 days. According to statistics from Securities Times Data Treasure, institutions unanimously forecast that nine silicone-related stocks are expected to post full-year profit growth in 2026, with Sanyou Chemical, Wynca Group, Sanfu Chemical, Hoshine Silicon, and Luxi Chemical expected to lead with gains exceeding 100%.

On October 9, the A-share silicone concept sector continued to strengthen. Dongyue Silicone hit the 20cm daily limit-up, Chenguang New Materials also hit limit-up, and Guibao Science and Technology, Xinyaqiang, and Hesheng Silicone followed with gains. Behind the sector's sustained strength are multiple factors including improved industry supply-demand dynamics, recovering product prices, and earnings repair at listed companies. At the end of 2025, the silicone industry's anti-involution conference was held, where companies reached a consensus to cut production by 30%, and silicone prices gradually recovered. Entering 2026, leading companies continued to reduce output and raise prices, effectively easing inventory pressure. Affected by the EU REACH environmental regulations and high energy costs, international chemical giants such as Dow and Wacker have announced shutdowns or reductions in silicone capacity, and the accelerated clearing of overseas capacity has provided market space for domestic companies with cost advantages. Taking the key intermediate product DMC as an example, the price was around 13,600 yuan per tonne in early September, rose to about 14,700 yuan per tonne in mid-September, and after entering October, mainstream market negotiation prices remained in the range of 14,400 to 15,000 yuan per tonne. On the evening of October 8, Dongyue Silicone disclosed its performance forecast for the first three quarters of 2026, expecting net profit attributable to the parent company of 547 million to 567 million yuan, a year-on-year increase of 19,050% to 19,750%, mainly driven by improved industry supply-demand dynamics that lifted prices of major products. In addition, expanding applications in semiconductors, data center cooling, and new energy are creating new growth opportunities. Jianghan New Materials' production facilities with annual capacity of 10,000 tonnes of 6N-grade silicon tetrachloride and 5,000 tonnes of 9N-grade TEOS are currently in the equipment installation stage and are expected to begin trial operation in early 2027. Industry insiders caution that whether new demand layouts can translate into actual performance still depends on the progress of project commissioning, customer certification, and demand realization at the relevant companies.

Xinyaqiang released its 2026 interim report, with net profit attributable to the parent company at 72.24 million yuan, an increase of 22.42% compared to the same period last year. The company's total operating revenue was 409 million yuan, up 27.30% year-on-year, and net cash inflow from operating activities was 61.58 million yuan, a substantial year-on-year increase of 497.26%. The latest asset-liability ratio stands at 10.26%, gross margin at 24.01%, achieving three consecutive quarters of growth, ROE at 3.22%, and diluted earnings per share at 0.23 yuan. Total asset turnover was 0.17 times, and inventory turnover was 3.24 times, both improved from the same period last year. The number of shareholders was 39,600, with the top ten shareholders holding 73.22% of the total share capital.

Xinyaqiang has disclosed its semi-annual report. In the first half of 2026, it achieved operating revenue of 409 million yuan, up 27.3% year-on-year. Net profit attributable to shareholders of the listed company was 72.2408 million yuan, up 22.42% year-on-year. Basic earnings per share stood at 0.23 yuan. The company specializes in the research, development, production, and sales of fine organosilicon chemicals. During the reporting period, sales volume of core products continued to grow and reached a new record high. Demand for high-end electronic chemicals remained strong, with capacity supply and market expansion providing mutual support, driving a steady recovery in overall gross margin and achieving a virtuous cycle of production and sales.

Shenhuo Shares and Xinyaqiang disclosed their 2026 semi-annual reports on the evening of July 27, while Yishitong and CSPC Innovation released semi-annual earnings forecasts. All four companies showed overall improvement in first-half operating performance. Shenhuo Shares achieved operating revenue of 24.791 billion yuan, up 21.35 percent year-on-year, with net profit attributable to shareholders of 4.781 billion yuan, up 151.06 percent, mainly driven by higher selling prices for coal and electrolytic aluminum and lower alumina prices. Xinyaqiang posted operating revenue of 409 million yuan, up 27.3 percent, and net profit attributable to shareholders of 72.2408 million yuan, up 22.42 percent, as improved supply and demand in the organosilicon industry pushed core product sales to a record high. Yishitong expects operating revenue between 400 million and 420 million yuan, up 47.33 to 54.69 percent, and net profit attributable to shareholders between 9.5 million and 14 million yuan, turning from a loss to a profit year-on-year, benefiting from increased sales of lithium battery coating materials driven by the new energy vehicle and energy storage markets. CSPC Innovation expects net profit attributable to shareholders between 1.18 billion and 1.36 billion yuan, turning from a loss to a profit, as R&D achievements in its biopharmaceutical business continue to materialize.

Based on the equity registration date, a total of 46 A-share companies enter the dividend implementation stage today. Among them, 27 companies have a cash dividend of 1 yuan or more per 10 shares. Wuliangye is the most generous, paying 25.80 yuan per 10 shares, followed by Tsingtao Brewery and Bank of Ningbo with 23.50 yuan and 9.00 yuan per 10 shares respectively. In terms of share transfer ratios, Xinya Qiang tops the list with a plan of 4.5 bonus shares and 3.5 yuan cash per 10 shares. A total of 3,652 listed companies have proposed distribution plans for 2025, of which 3,641 include cash dividends, with a cumulative payout of 1.59 trillion yuan.