Rongsheng Petrochemical Co Ltd

Rongsheng Petrochemical has released its 2026 interim report, with net profit attributable to the parent company of 5.111 billion yuan. The company's total operating revenue was 129.407 billion yuan, down 12.93% from the same period last year. Net cash inflow from operating activities was 21.254 billion yuan, the latest asset-liability ratio was 74.07%, gross margin was 15.25%, and ROE was 10.72%.

Chinese refiners are rushing to buy at least 8 million barrels of Iraqi crude to fill supply gaps from Saudi Arabia and ADNOC, while Iraq has boosted exports through the Strait of Hormuz to around 2 million barrels per day in August. Sources said Rongsheng Petrochemical and some state-run refiners bought Basrah Heavy and Basrah Medium crude for near-term delivery, with sellers including CNOOC and several global oil trading firms. Some Basrah Medium cargoes were sold at premiums below 10 dollars per barrel against Dubai quotes on a delivered basis. The deals took place even as the Iran conflict drags on and some tankers switch off their location transponders while passing through the Strait of Hormuz to reduce security risks.

Rongsheng Petrochemical, together with its wholly owned subsidiary Rongsheng New Materials, has signed a project development agreement with SABIC for a new project, aiming to accelerate the construction of the Rongsheng New Materials Jintang New Materials project in Zhoushan. Under the agreement, the two sides are evaluating a potential investment by SABIC to hold a 30 to 50 percent equity stake in Rongsheng New Materials for the purpose of the new project, and will sign a series of supporting agreements including a joint venture agreement, technology licensing agreement, and technical service agreement, to carry out comprehensive cooperation in relevant advanced technology fields. SABIC is a globally renowned diversified chemical company headquartered in Riyadh, Saudi Arabia, with products covering chemicals, general and high-performance plastics, and agri-nutrients. Rongsheng Petrochemical is a globally leading chemical materials company, mainly producing polyester, engineering plastics, polyolefins, rubber, and new energy materials. Market analysts pointed out that this in-depth cooperation in the high-end new materials sector marks Rongsheng Petrochemical's accelerated transformation from a traditional cyclical chemical company into an advanced materials enterprise with long-term growth logic.

Among the 94 Shenzhen-listed chemical companies that have disclosed first-half earnings previews, more than 60 percent are profitable and reported earnings growth. Of these, 46 companies saw earnings rise by over 50 percent year-on-year, and 10 turned losses into profits. Hengyi Petrochemical expects attributable net profit of 5.5 billion to 6 billion yuan, a year-on-year increase of 2,326.31 percent to 2,546.88 percent. Eastern Shenghong expects attributable net profit of 4.2 billion to 5 billion yuan, up 987.39 percent to 1,194.51 percent. Chengzhi Shareholding expects attributable net profit of 260 million to 320 million yuan, a surge of 1,259.43 percent to 1,573.15 percent. Rongsheng Petrochemical expects attributable net profit of 5 billion to 5.2 billion yuan, up 730.45 percent to 763.67 percent, and has implemented a 1.7 billion yuan employee stock ownership plan. Qinghai Salt Lake Industry expects attributable net profit of 6 billion to 6.3 billion yuan, an increase of 131.38 percent to 142.95 percent. In the first half, its potassium chloride output reached 1.6817 million tonnes and sales volume hit 2.2473 million tonnes, while lithium carbonate output was 49,400 tonnes and sales volume stood at 39,100 tonnes. Overall, in the first half of 2026, the Shenzhen-listed chemical sector, driven by optimized supply-demand structures, recovering product prices, and the release of integrated advantages by industry leaders, has shown a strong trend of broad-based recovery with leading companies spearheading the rally.

Rongsheng Petrochemical's controlling subsidiary, Zhejiang Petroleum and Chemical Company, plans to invest in a renovation and upgrade project for its integrated refining and chemical facility, with an estimated total investment of about 19.6 billion yuan and a construction period of two years. Upon completion, the project is expected to generate an annual net profit of 1.41 billion yuan, with a post-tax financial internal rate of return of 11.08 percent and a post-tax investment payback period of 8.93 years. This investment aims to enhance the depth of product processing, increase the output of high-value-added new materials, and strengthen the company's overall competitiveness.

On the evening of July 16, multiple listed companies on the Shanghai and Shenzhen stock exchanges released positive news. Rongsheng Petrochemical's controlling subsidiary, Zhejiang Petroleum & Chemical Co., Ltd., plans to invest approximately 19.6 billion yuan in a construction project to upgrade and transform its integrated refining and chemical facilities, with an expected construction period of two years. Xingye Silver & Tin's wholly-owned subsidiary, Xingye Gold Hong Kong, intends to subscribe for a 20 percent stake in a private placement by Australian-listed Tartana Minerals Limited for about 5.1827 million Australian dollars; Tartana holds eight mining licenses and 22 exploration licenses. Jindi Corporation's wholly-owned subsidiary, Boyuan Intelligent Drive, plans to increase its capital in Chenyu Precision by 50 million yuan to acquire a 55.5556 percent equity stake, entering the server liquid cooling heat dissipation industry. Xinlaifu has adjusted the investment scale of its sensitive resistor capacity expansion project from 250 million yuan to 136 million yuan, with the reduced 114 million yuan and an additional 115 million yuan of over-raised funds being directed to an industrialization project for specialized electronic micro-nano powder materials. Zhongyan Dadi intends to acquire a 60 percent stake in Xinyuhuan through a 90 million yuan equity transfer and a 150 million yuan capital increase, expanding into the PCB drill bits and milling cutters sector; Xinyuhuan has committed to a total net profit of no less than 100 million yuan from 2026 to 2028. Shengshi Technology's subsidiary, Shengxin Investment, plans to invest 50 million yuan for a 2.5 percent stake in Ideal Vision, a company focused on fiber optic scanning display technology. Dingtong Technology expects its net profit attributable to the parent company for the first half of the year to be 185 million yuan, a year-on-year increase of 60.04 percent, with mass production of 112G high-speed products. GEM plans to repurchase shares for 100 million to 160 million yuan, at a price not exceeding 10.6 yuan per share. Jingce Electronics' controlling subsidiary, Shanghai Jingce, has signed a 223 million yuan sales contract for semiconductor front-end inspection and measurement equipment, with cumulative contract value over the past twelve consecutive months reaching 330 million yuan. Xianhui Technology and Fujian Dongheng have received contracts and fixed-point notification orders from CATL totaling approximately 920 million yuan since March 7. Jingneng Power plans to raise no more than 5 billion yuan through a private placement for projects including the Zhuozhou thermal power expansion, with the controlling shareholder intending to subscribe for 1 billion to 2.5 billion yuan. Weiergao plans to raise no more than 1.3 billion yuan through a private placement for a PCB intelligent manufacturing project. Xiangjiang Holdings' wholly-owned subsidiary, Xiangjiang Yunhan, has signed a five-year data center service agreement with China Mobile Ningxia valued at 796 million yuan. Moore Threads expects first-half revenue of 1.65 billion to 1.75 billion yuan, a year-on-year increase of 135.12 percent to 149.37 percent.

Rongsheng Petrochemical announced that it expects net profit attributable to shareholders of the listed company for the first half of 2026 to be between 5.00 billion and 5.20 billion yuan, representing a year-on-year increase of 730.45% to 763.67%. The change in performance is mainly due to a recovery in the petrochemical industry, repair of product processing spreads, and the company leveraging its integrated refining and chemical facilities to optimize processes, highlighting its full-industry-chain advantages.

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.