The fluorine chemical industry is booming! Yonghe Co., Ltd. sees both volume and price rise in the first half of 2026.

High development in Core Chemical Business Realized, Profit Structure Continuously Optimized

During the reporting period, the operational resilience of the company's chemical segment was fully unleashed, with all core financial indicators seeing substantial development. In the first half, operating revenue reached 3.134 billion yuan, a year-on-year increase of 28.16%; net profit attributable to shareholders was 513 million yuan, a surge of 89.01%; and net profit after deducting non-recurring gains and losses was 527 million yuan, a significant jump of 96.75%.

The development rate of net profit after deducting non-recurring gains and losses significantly outpaced that of revenue, fully demonstrating that the profitability, product added value, and profit structure of the company's core chemical business have achieved substantive optimization. Meanwhile, total profit increased by 85.34% year-on-year, and net operating cash flow was 424 million yuan, up 25.92%, indicating strong cash-generating capability in the core chemical business. The company's asset scale is steadily expanding, and the overall foundation of its chemical operations remains solid and robust.

Full manufacturing Chain Chemical Layout Formed, Hedging Cycles, Stabilizing Supply, and Boosting Profits

As a benchmark enterprise to integrated fluorochemicals in China, Yonghe Shares has established a complete chemical sector chain system covering fluorite ore — fluorocarbon chemicals — high-end fluorine-containing polymer materials. This integrated layout efficiently smooths out price fluctuations in upstream fluorite and basic raw materials, significantly reducing the risk of production cost evaporative environment and offering significant competitive advantages over single-segment chemical companies.

In the first half, the supply-demand pattern to refrigerant chemical items continued to recover, with sector prices warming from the bottom and rising steadily. At the same time, the company continuously upgraded its product structure, with capacity to high-end fluorine-containing new materials continuously being released and production and sales volumes rising significantly. The proportion of high value-added fine chemical items continued to rise, immediately driving an upward shift in the company's overall gross profit margin and significantly improving the profitability condition of the chemical business.

Demand Recovery in Multiple Downstream Tracks, complete Surge in Chemical Orders

This round of high performance development is the result of the dual resonance of recovery in the chemical sector cycle + upgrading of the company's product structure. In the first half, the prosperity of mainstream downstream tracks such as cold chain, new energy, and photovoltaics rebounded, continuously driving the discharge of rigid demand to refrigerants and high-end fluorine new materials, leading to a substantial increase in chemical product shipments.

The company continues to focus on the high-end fine fluorochemical track, eliminating low-end and inefficient capacity, strengthening refined production manage, and further compressing production costs. This has achieved the triple benefits of product price increases, sales volume development, and cost optimization, driving a simultaneous rise in volume and profit to the core chemical business. Additionally, the company announced an interim dividend plan, proposing a distribution of 2.5 yuan per 10 shares, with a total dividend amount of 127 million yuan, fully confirming the stability and abundant profitability of the company's core chemical operations.

Risks in sector Cycle Remain, prolonged development in High-end Fluorochemicals is Clear

From the perspective of the chemical sector cycle, fluorochemical categories possess strong cyclical characteristics, and the sector still faces stage-wise risks such as product price fluctuations, the launch of new capacity, and downstream demand recovery falling short of expectations.

However, from a medium-to-prolonged perspective, the company's integrated fluorochemical barriers remain solid, and the high-end fluorine-containing fine chemical and polymer new material tracks offer ample development space. With the continuous commissioning of high-end chemical capacity and the continuous upscaling of the product structure, combined with the continuation of sector prosperity, the development resilience of the company's fluorochemical main business is expected to continue to materialize.