Net profit up as much as 1,194% year-on-year! Chemical giant Shenghong delivers stunning market performance

H1 Performance Soars, Q2 development Momentum Fully Unleashed

Performance forecast data shows that Dongfang Shenghong's net profit attributable to shareholders to the first half of 2026 is expected to reach 4.2 billion to 5 billion yuan, a year-on-year increase of 987.39%—1194.51%; net profit after non-recurring gains and losses recorded 4.016 billion to 4.816 billion yuan, a year-on-year surge of 1377.97%—1672.39%, creating impressive results in profit development speed.

The company's performance development showed a direction of quarter-on-quarter acceleration, with development momentum continuously strengthening. In the first quarter of 2026, Dongfang Shenghong already achieved a net profit of 1.432 billion yuan, a year-on-year increase of 319.86%, taking the lead in achieving a performance recovery. Entering the second quarter, the prosperity of the chemical sector continued to rise, the company's development rhythm accelerated across the board, and single-quarter net profit reached 2.768 billion to 3.568 billion yuan, a year-on-year surge of 60 to 78 times, becoming the core support to the explosion in performance in the first half of the year.

sector Pattern Continues to Optimize, Chemical Product Price Spreads Significantly Recover

The core driver of this high development in corporate performance comes from the significant rebound in the overall prosperity of the domestic petrochemical and chemical sector. In the first half of 2026, global geopolitical tensions pushed up international crude oil prices, the center of sector raw material costs continued to move upward, coupled with an overall tight supply of chemical raw materials, and the market supply and demand dysfunction drove the prices of various petrochemical and chemical items steadily upward.

Influenced by the favorable sector trends, the selling prices of Dongfang Shenghong's core items such as olefins, aromatics, and refining by-items continued to rise, and the production-sales price spreads of items widened significantly, thoroughly improving the company's profit space. Previously, the company also mentioned at the performance briefing that the price increases of olefin items such as ethylene, propylene, and butadiene, aromatic items such as PX and pure benzene, and refining by-items such as sulfur were the core sector factors to the significant improvement in corporate profitability.

Full sector Chain Advantage Highlighted, Cost Reduction and Efficiency Increase Fortify Profit Foundation

On the basis of sector dividends, Dongfang Shenghong further magnified operating returns by virtue of its mature integrated manufacturing layout and refined regulation capabilities. Relying on the core 16 million tons/year refining and chemical integration project, the company's various manufacturing sectors operated stably, production and sales were smoothly connected, and the advantages of extensive capacity were fully released.

At the same time, the company continued to advance the strategy of cost reduction and efficiency increase. Through multiple measures such as the synergy of various manufacturing sectors, intelligent upgrading of production, and refined supply chain regulation, it efficiently compressed production costs, improved production efficiency, and achieved significant results in refined operations, providing endogenous support to steady performance development.

Complete Capacity Matrix Formed, Covering Basic Chemicals and High-end New Materials

As a leading enterprise in the sector, Dongfang Shenghong has built a complete manufacturing chain system covering petrochemicals, chemical fibers, and new energy/new materials, forming a "1+N" diversified manufacturing layout that covers core fields such as petroleum refining, polyester chemical fibers, new energy/new materials, and electronic chemicals.

In the field of basic chemicals, the company possesses atmospheric and vacuum distillation units and MTO units with leading individual scales in China, has million-ton-level scale production capacity to core raw materials such as ethylene, paraxylene, and ethylene glycol, and is equipped with a full range of chemical product capacity such as styrene, phenol, acetone, and sulfur, highlighting outstanding supply chain advantages.

In the field of high-end new materials, the company has significant technical barrier advantages. It is one of the few companies in China that simultaneously masters the core R&D methodology and mass production capabilities to photovoltaic-grade EVA and POE. It currently has 900,000 tons/year EVA and 100,000 tons/year POE capacity, and is also laying out multiple high value-added new energy materials such as PETG and EC/DMC, deeply aligning with the research needs of the new energy sector.

growing Investment in High-end Chemical Layout, New Projects Open Up prolonged development Space

Based on its existing manufacturing foundation, Dongfang Shenghong continues to deeply cultivate the high-end chemical track, continuously extending the high-value manufacturing chain, and laying out multiple strategic emerging material items. The company focuses on high-end categories such as new energy materials, specialty fibers, electronic chemicals, and high-end film materials, precisely docking with downstream high-end market demands such as new energy, high-end manufacturing, and aerospace, and continuously optimizing its product structure.

In April 2026, the company successively landed heavy chemical investment projects to consolidate its prolonged development capabilities. Among them, the 13.3 billion yuan aromatics sector chain condition improvement and efficiency increase project will lay out high value-added aromatics new materials such as TDI, HDI, bisphenol A, and polycarbonate; the 3.45 billion yuan coking raw material pretreatment project will efficiently optimize raw material adaptability and enhance the condition and added value of petroleum coke items. These two major projects will create new profit development points to the company and continuously consolidate its position as the sector leader.