Zhejiang Huafon Spandex Co Ltd

Huafon Chemical released its 2026 interim report, with net profit attributable to the parent reaching 1.983 billion yuan, up 101.64 percent from the same period last year. Total operating revenue was 14.167 billion yuan, a year-on-year increase of 16.73 percent. Net cash inflow from operating activities was 1.373 billion yuan, marking two consecutive years of growth. The latest gross margin rose to 21.82 percent, and ROE reached 6.89 percent, both significantly higher than the same period last year.

Huafon Chemical announced that Chairman You Feihuang has proposed implementing a mid-year profit distribution plan for 2026, distributing cash dividends to all shareholders based on the total share capital on the record date, with no bonus shares or conversion of capital reserve into share capital.

Xinxiang Chemical Fiber has disclosed its performance forecast for the first half of 2026, estimating net profit attributable to shareholders of the listed company at 300 million to 400 million yuan, a year-on-year increase of 378.09 percent to 537.45 percent. Deducted non-recurring net profit is expected to be 280 million to 380 million yuan, up 670 percent to 945 percent year-on-year. The company said the profit improvement was mainly due to increased sales volumes of biomass cellulose filament yarn and spandex fiber, along with higher gross margins for spandex fiber, leading to a substantial year-on-year increase in gross profit from main products. The spandex industry has seen a recovery, with mainstream 40D spandex quotes fluctuating upward from 23,000 yuan per tonne at the start of the year to nearly 30,000 yuan per tonne by early July. Xinxiang Chemical Fiber currently has an annual production capacity of 110,000 tonnes of biomass cellulose filament yarn and 200,000 tonnes of spandex fiber, with spandex fiber capacity utilization reaching 100.76 percent as of the end of 2025. The company also plans to raise no more than 1.3 billion yuan through a private placement to fund projects including high-quality biomass cellulose filament yarn and supporting facilities.

The fluorochemical industry is embracing dual opportunities from an improving supply-demand landscape and a resonance with technology attributes. As of 11:06 AM on July 6, 2026, the CSI Subdivision Chemical Industry Thematic Index rose 0.34 percent, with constituent stocks Huafon Chemical up 6.99 percent, Eastern Shenghong up 6.22 percent, Hengli Petrochemical up 6.18 percent, Hualu Hengsheng up 5.27 percent, and Rongsheng Petrochemical up 5.14 percent. Guosheng Securities noted that, constrained by the Montreal Protocol and the Kigali Amendment, China implements total volume controls on refrigerants. In 2026, quotas for third-generation refrigerants are locked in and the phase-out of second-generation refrigerants accelerates, leading to a continued tightening of effective supply and driving year-to-date price increases of over 30 percent for mainstream varieties such as R32 and R134a. Meanwhile, the penetration of fluorine-containing materials in the AI industry chain is accelerating. Demand for tungsten hexafluoride has doubled due to increased stacking layers in HBM and 3D NAND, PTFE benefits from high-frequency transmission demand in Nvidia's next-generation server platforms, and fluorine-containing liquid cooling materials are opening up growth opportunities as GPU power consumption exceeds the limits of air cooling. The Chemical ETF Harvest closely tracks the CSI Subdivision Chemical Industry Thematic Index, focusing on the industry's new cycle of prosperity.

Chemical ETF Penghua saw net subscriptions of 393 million units today, with funds buying into the chemical sector on dips. Institutions point out that the refining and polyester segments saw significant improvement in profitability in the second quarter. Semi-annual earnings forecasts from companies such as Eastern Shenghong, Huafon Chemical, and Qinghai Salt Lake Industry show substantial year-on-year net profit growth. Shengquan Group plans to raise prices of PPO and other series products by 15% to 20% starting July 13. In the short term, as geopolitical conflicts ease and the peak season arrives, chemical product spreads are expected to continue recovering. In the medium to long term, against the backdrop of supply-side policy constraints, the industry's valuation center is expected to continue shifting upward. As of the close on July 6, constituents of the CSI Subdivided Chemical Industry Theme Index were mixed, with Eastern Shenghong leading gains at 10.04%. Chemical ETF Penghua last traded at 0.86 yuan.