Profit surge offset by disclosure penalty and battery rule change
Interim profit up nearly 9-fold Do-Fluoride's first-half 2026 net profit hit 512 million yuan, up 897% from a year earlier, on revenue up 62.6% and operating cash flow up over 1,000%. This is the core force lifting the stock: the business is earning far more than before.
The earnings surge is the main fundamental force behind the stock and the clearest reason for positive price pressure.
Exchange rebuke over omitted disclosure The Shenzhen Stock Exchange issued a regulatory letter because Do-Fluoride touted its semiconductor-grade hydrofluoric acid business without saying it was under 2% of sales and immaterial to profit. This hurts trust and can weigh on the shares.
A regulatory penalty directly tied to the company is a real counterweight to the strong earnings and can pressure the stock.
Removed from battery compliance list Beijing scrapped the retired power-battery reuse rule and dropped over 100 firms, including Do-Fluoride, from its compliance list, citing substandard products. This clouds part of its battery-recycling business and favors stronger, better-capitalized rivals.
The delisting is a company-specific regulatory setback that could reduce a business line's prospects and weigh on sentiment.