Yuanli Technology released its 2026 interim report on August 26. Benefiting from higher product prices that boosted gross margin, results improved significantly during the reporting period, but operating cash flow came under heavy pressure due to increased prepayments for materials. The company posted operating revenue of 1.317 billion yuan, up 18.02% year on year; net profit attributable to shareholders of 147 million yuan, up 36.66%; and non-GAAP net profit of 148 million yuan, up 40.24%. Net cash flow from operating activities was negative 107 million yuan, turning negative from 7.01 million yuan in the same period last year. The company mainly develops and produces fine chemicals such as dimethyl dicarboxylate, fatty alcohols, plasticizers, and light stabilizers. Revenue from dimethyl dicarboxylate series products was 490 million yuan, and revenue from fatty alcohol series products was 499 million yuan, together contributing the vast majority of revenue. The company continued to optimize its product mix, with strategic products such as light stabilizers gradually ramping up. Projects under construction, including a 30,000-ton-per-year diol project and a 25,000-ton-per-year hindered amine light stabilizer project, are progressing in an orderly manner. The balance of construction in progress at the end of the period reached 649 million yuan, up 23.09% from the end of last year. Administrative expenses rose sharply by 42.97% year on year, mainly due to higher equity incentive expenses; research and development expenses increased 22.25% year on year to 55.16 million yuan. Looking ahead, the company is expected to benefit from growing demand for high-performance and environmentally friendly chemicals, but it needs to watch risks such as raw material price fluctuations, slower-than-expected ramp-up of new projects, and tight operating cash flow.
Yuanli Chemical Group Co LtdH1 2026 net profit rose 36.66% and non-GAAP profit 40.24% on higher product prices boosting gross margin.
