Zhenyang Development released its 2026 interim report on August 30. Due to falling prices of major products and a decline in gross margin, the company's revenue and net profit both decreased. Meanwhile, its major asset restructuring has received registration approval from the China Securities Regulatory Commission, and the company is about to be delisted and have its legal person status cancelled. During the reporting period, the company achieved operating revenue of 1.166 billion yuan, down 12.71 percent year on year. Net profit attributable to the parent company was 2.7503 million yuan, down 94.57 percent. Non-GAAP net profit was 5.7274 million yuan, down 88.77 percent. Net cash flow from operating activities was 37.2621 million yuan, down 58.68 percent. The company mainly produces chlor-alkali related products, with chlor-alkali product revenue of 630 million yuan, PVC product revenue of 390 million yuan, and MIBK product revenue of 79 million yuan. The average market price of caustic soda fell 10 percent from the beginning of the year, while the average price of calcium carbide based PVC declined slightly. Inventory write-down provisions increased to 30.2213 million yuan, further eroding profit. At the industry level, chlor-alkali capacity continued to expand, with total caustic soda capacity reaching 52.46 million tonnes and total PVC capacity reaching 30.75 million tonnes. Loose supply and demand put pressure on prices. Going forward, attention should be paid to the progress of the share swap and merger with Zhejiang Expressway Company and the price trends of major products.
Zhejiang Oceanking Development Co LtdFalling prices of major chlor-alkali products (caustic soda down 10%, PVC lower) and shrinking gross margin drove revenue and net profit declines.
