Xinfengming Group Co Ltd

Xinfengming held its 2026 semi-annual results briefing on October 9, responding to questions about improved first-half performance without profit distribution, and a sharp decline in operating cash flow despite a surge in net profit. In the first half, the company achieved operating revenue of 40.691 billion yuan, up 21.50 percent year on year; net profit attributable to the parent company was 1.439 billion yuan, up 103.16 percent year on year. However, net cash flow from operating activities was negative 2.788 billion yuan, a sharp year-on-year decline. The company said this was mainly related to an increase in inventory goods and reflected a phase-specific operating characteristic. Regarding the decision not to distribute profits for the 2026 semi-annual period, Xinfengming said the industry it operates in is a heavy-asset, cyclical industry, and that it will formulate a reasonable cash dividend mechanism by combining its cash dividend policy and fully considering cash flow, capital expenditure, and other factors. The company's financial expenses in the first half rose 26.05 percent year on year, mainly due to an increase in exchange gains and losses and a decrease in interest income, with relatively little impact from the progress of overseas projects. Regarding the 360,000-ton project in Egypt, the company said total investment is about 280 million US dollars, funded by its own capital plus overseas bank financing. It has completed overseas investment filings with the National Development and Reform Commission and the provincial commerce department and obtained the overseas investment certificate, though construction progress involves some uncertainty. In addition, on October 8 the company disclosed share reduction results: Vice President Shen Jianyu reduced holdings by 720,000 shares, accounting for 0.0429 percent of total share capital; Vice President Xu Jizhong reduced holdings by 120,000 shares, accounting for 0.0072 percent of total share capital; and employee representative director, vice president, and board secretary Yang Jianfei has not yet implemented any reduction.

The Penghua Chemical ETF rose 1.31%, last trading at 0.78 yuan. In news, driven by rising prices of petroleum-related products, chemical industry profits grew 67.8% in the first half. As of 10:50 on July 27, 2026, the CSI Subdivision Chemical Industry Theme Index was up strongly by 1.17%, with constituent Do-Fluoride Chemicals gaining 4.46%, Xinfengming Group up 4.41%, and Tinci Materials advancing 3.77%. Caitong Securities believes the chemical sector offers compelling value, with traditional cyclical leaders now at attractive valuations.

Xinfengming disclosed its earnings forecast, expecting to achieve a net profit attributable to the parent company of 1.38 billion to 1.5 billion yuan in the first half of 2026, representing a year-on-year increase of 94.59% to 111.51%. The company stated that during the reporting period, new supply in the industry slowed in an orderly manner, the industry cycle improved, market supply and demand dynamics were optimised, product price spreads further widened, gross margin rose year-on-year, and the profitability of its main business improved.