Shanxi Lanhua Sci-Tech Venture Co Ltd

Lanhua Sci-Tech Venture released its 2026 interim report, with net profit attributable to the parent company at 83.11 million yuan, up 44.60% from the same period last year. Total operating revenue was 4.792 billion yuan, up 18.32% year on year. Net cash inflow from operating activities was 281 million yuan, an increase of 741 million yuan from the same period last year. The latest gross margin was 28.03%, up 4.23 percentage points from the previous quarter, marking two consecutive quarters of increase. The latest return on equity was 0.54%, up 0.19 percentage points year on year. Diluted earnings per share were 0.06 yuan, up 44.62% year on year.

Lanhua Sci-Tech announced that its 3.962 billion yuan investment in the Lanhua Coal Chemical energy-saving and environmental protection upgrade project is progressing in an orderly manner. Mechanical completion is expected on August 31, 2026, project handover on October 31, and completion with transition to trial production before December 31. The project uses Sedin Engineering's patented pressurized continuous gasification technology for crushed coal and lump coal. Once completed, it will have an annual production capacity of 490,000 tons of synthetic ammonia, 560,000 tons of urea, 94,400 tons of LNG, and 56,000 tons of 98% concentrated sulfuric acid. To fully advance the project, Lanhua Coal Chemical's existing production facilities stopped production in mid-August. At the same time, the Chemical Branch and Lanhua Clean Energy have also stopped production because their capacity quotas have been integrated into Lanhua Coal Chemical.

Lanhua Sci-Tech disclosed its earnings forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 80 million and 90 million yuan, a year-on-year increase of 39.18% to 56.58%. Deducted non-recurring net profit is expected to be between 85 million and 105 million yuan, compared to a loss of 170 million yuan in the same period last year. The company stated that the profit growth is mainly due to the steady rise in the coal market, significantly higher coal prices year-on-year, and high domestic urea prices, while a reduction in non-operating expenses also had a positive impact on non-recurring gains and losses.