China Xuyang Group (01907) Fa Yingxi expects net profit to increase by no less than 335% year-on-year in the first half of the year

According to the Zhitong Finance App, China Xuyang Group (01907) announced that the group's net profit for the first half of 2026 is expected to increase by no less than 335% year-on-year.

According to the announcement, the increase in net profit is mainly due to the combined impact of the following factors: the price spread of fine chemical products widened due to rising sales prices, and the successful completion of the acquisition of Binhai Energy.

During this period, the Group's fine chemical product price spread widened, mainly due to an increase in the price spread of aromatic hydrocarbon production lines. The average selling price of caprolactam products increased by 13.3% during the period to about RMB 9,701.3 per ton (same period last year: about RMB 8,563.1 per ton), while the average purchase price of pure benzene, which is one of the main raw materials of caprolactam, remained basically the same, so the price difference of caprolactam widened as a result. In addition, the price difference of other fine chemical products (such as coke oven gas to methanol) remains high. The widening price spread for fine chemical products is one of the reasons for the increase in net profit for the current period compared to the same period last year.

The Group successfully completed the acquisition of Tianjin Binhai Energy Development Co., Ltd. on June 24, 2026. As the acquisition was a merger of companies under the same control in accordance with IFRS, the Group re-listed unaudited consolidated management accounts for the same period last year, resulting in a reduction of approximately RMB 36 million in unaudited net profit for the same period last year. As disclosed in the company's announcement on August 8, 2026 on Binhai Energy's main accounting data and financial indicators for the six months ended June 30, 2026, Binhai Energy's revenue increased 78.5% to approximately RMB 419 million during the period, and its operating capacity continued to increase.

In this period, Binhai Energy will focus on completing the construction and physical connection of the first phase 150MW wind power project in the Inner Mongolia Autonomous Region to improve the Group's ability to guarantee Binhai Energy's supply of lithium battery anode materials to meet the growing needs of battery customers. At the same time, in order to improve the quality of integrated production, reduce production costs, and enhance the green nature of the product. The green power project achieved full power transmission on August 1, 2026, and officially entered the system commissioning and trial operation stage.