Shanghai Yongguan Adhesive Products Corp Ltd

Yongguan New Materials disclosed its 2026 semi-annual report on August 27. In the first half, it achieved total operating revenue of 3.58 billion yuan, up 10.06% year on year. Net profit attributable to the parent company was 92.2126 million yuan, up 199.60% year on year. Net profit after deducting non-recurring items was 10.2132 million yuan, up 111.70% year on year. Net cash flow from operating activities was 291 million yuan, up 443.19% year on year. During the reporting period, the company's total non-recurring gains and losses were 81.9994 million yuan, of which government subsidies recognised in current profit or loss amounted to 104 million yuan. As of the end of the first half of 2026, the company's inventory book value was 1.174 billion yuan, accounting for 33.8% of net assets, an increase of 245 million yuan from the end of the previous year. The company mainly focuses on the research, development, production and sales of various new materials, including consumer-grade adhesive new materials, automotive-grade adhesive film new materials, industrial-grade adhesive new materials, and biodegradable new materials.

Yongguan New Materials disclosed its earnings forecast, expecting net profit attributable to the parent for the first half of 2026 to be between 84 million yuan and 100 million yuan, a year-on-year increase of 172.92% to 224.91%. Deducted non-recurring net profit is expected to be between 8 million yuan and 12 million yuan, a year-on-year increase of 65.83% to 148.74%. The company stated that the expected profit growth is mainly due to the strategic advancement of upgrading traditional businesses and breakthroughs in emerging businesses. The release of production capacity from new business units such as automobiles and new energy, as well as overseas bases, has driven the expansion of sales scale, with operating revenue and gross profit growing simultaneously and overall gross margin recovering. At the same time, the year-on-year increase in government grants related to income also had a positive impact.