PA66 surged by 8,600 yuan/ton in a single quarter! Shenma Share forecasts a profit of approximately 66 million yuan for the half-year period.

On the evening of July 13, Shenma Shares released a forecast for its semi-annual performance for 2026, indicating a return to profitability. The company achieved a net profit attributable to shareholders of approximately 66 million yuan in the first half of this year, and a net profit after deducting non-recurring gains and losses of approximately 65 million yuan, successfully achieving a significant turnaround and witnessing a substantive recovery in its operating conditions.

I. Marginal Improvement in Industry Trends; Year-on-Year Rise in Average PA66 Prices Drives Profit Recovery

Regarding the successful turnaround for this period, Shenma Shares stated that it primarily benefited from the improved supply-demand balance in the Nylon 66 industry during the first half of the year. The market selling prices of its core PA66 series products increased significantly year-on-year, directly lifting the company's overall profitability.

In the first quarter of this year, PA66 market prices experienced a strong upward trend, rising from an opening price of 14,900 yuan/ton at the beginning of the year to 23,500 yuan/ton by the end of March, with a price fluctuation range of as much as 8,600 yuan per ton. Although product prices retreated from their highs after entering the second quarter, the overall average transaction price for the first half remained significantly higher than that of the same period last year, providing core support for the company's performance recovery.

II. Exclusive Dual Technologies Connect the Entire Industry Chain; Independent and Controllable Raw Materials Fortify Cost Advantages

Shenma Shares possesses scarce core technological barriers in the industry and is the only enterprise in the world simultaneously mastering two independent production processes for key Nylon 66 raw materials: the butadiene direct hydrocyanation method for adiponitrile and the aminocapronitrile method. It has fully constructed an integrated complete industry chain of "Coal — Adiponitrile/Aminocapronitrile — Hexamethylenediamine — Nylon 66 Chips — High-end End Products," thereby breaking free from cost constraints related to procuring raw materials externally from the source.

In terms of market share, the company's global market share for Nylon 66 industrial yarn and tire cord fabric remains stable at 33%-40%, while its domestic market share for PA66 chips reaches 23%. The product structure features a prominent high-end orientation, with differentiated high-end products accounting for over 90%, and the proportion of overseas exports is as high as 60, demonstrating significant advantages in global market layout.

Raw material capacity is simultaneously seeing concentrated release: In April 2026, the 200,000-ton adiponitrile Phase I project of Aidian, a subsidiary of the controlling shareholder Pingmei Shenma, successfully commenced production, and the 100,000-ton aminocapronitrile Phase III project started construction simultaneously. The listed company's own 50,000 tons/year adiponitrile unit entered the trial production stage, continuously strengthening the self-sufficiency capability for upstream key raw materials.

III. Landing of Multiple High-end New Materials; Broadening the Track to Consolidate Competitive Barriers of the Leader

The company continues to increase investment in the R&D and industrialization of high-end Nylon new materials. Multiple key projects are proceeding in an orderly manner, continuously widening the technological gap with peers:

1. Mass Production of Ultra-High Strength Industrial Yarn Achieved: The 11-gram denier ultra-high strength Nylon 66 industrial yarn has completed mass production. The product performance benchmarks top international standards and can replace imports for use as a core raw material for aviation tires, filling the gap in key materials for the domestic large aircraft industry chain. The corresponding national-level R&D project has passed its mid-term acceptance.

2. High-Temperature Nylon Resin Project Under Construction: The 1,000 tons/year Nylon 6T high-temperature resin project is steadily landing, entering the high-value-added high-end engineering plastics track.

3. Expanding Capacity for Differentiated Fibers: The 7,000 tons/year Nylon 66 functional differentiated fiber project is proceeding in an orderly manner, continuously enriching the high-end product matrix and further reinforcing the moat of the industry leader.