The fluorine chemical industry is booming! Yonghe Co., Ltd. sees both volume and price rise in the first half of 2026.

On August 16, Yonghe Shares released its semi-annual report for 2026. In the first half of 2026, the domestic fluorochemical and refrigerant industries saw continued supply-demand recovery, with downstream application demand steadily warming up. Leveraging the advantages of its integrated fluorochemical industrial layout, the company saw simultaneous increases in the volume and price of various chemical products. Revenue, profit, and cash flow all surged significantly, the prosperity of the core chemical business continued to materialize, and the company entered a stage of high-speed growth.

High Growth in Core Chemical Business Realized, Profit Structure Continuously Optimized

During the reporting period, the operational resilience of the company's chemical segment was fully unleashed, with all core financial indicators seeing substantial growth. In the first half, operating revenue reached 3.134 billion yuan, a year-on-year increase of 28.16%; net profit attributable to shareholders was 513 million yuan, a surge of 89.01%; and net profit after deducting non-recurring gains and losses was 527 million yuan, a significant jump of 96.75%.

The growth rate of net profit after deducting non-recurring gains and losses significantly outpaced that of revenue, fully demonstrating that the profitability, product added value, and profit structure of the company's core chemical business have achieved substantive optimization. Meanwhile, total profit increased by 85.34% year-on-year, and net operating cash flow was 424 million yuan, up 25.92%, indicating strong cash-generating capability in the core chemical business. The company's asset scale is steadily expanding, and the overall foundation of its chemical operations remains solid and robust.

Full Industrial Chain Chemical Layout Formed, Hedging Cycles, Stabilizing Supply, and Boosting Profits

As a benchmark enterprise for integrated fluorochemicals in China, Yonghe Shares has established a complete chemical industry chain system covering fluorite ore — fluorocarbon chemicals — high-end fluorine-containing polymer materials. This integrated layout effectively smooths out price fluctuations in upstream fluorite and basic raw materials, significantly reducing the risk of production cost volatility and offering significant competitive advantages over single-segment chemical enterprises.

In the first half, the supply-demand pattern for refrigerant chemical products continued to recover, with industry prices warming from the bottom and rising steadily. At the same time, the company continuously upgraded its product structure, with capacity for high-end fluorine-containing new materials continuously being released and production and sales volumes increasing significantly. The proportion of high value-added fine chemical products continued to rise, directly driving an upward shift in the company's overall gross profit margin and significantly improving the profitability quality of the chemical business.

Demand Recovery in Multiple Downstream Tracks, Comprehensive Surge in Chemical Orders

This round of high performance growth is the result of the dual resonance of recovery in the chemical industry cycle + upgrading of the company's product structure. In the first half, the prosperity of mainstream downstream tracks such as cold chain, new energy, and photovoltaics rebounded, continuously driving the release of rigid demand for refrigerants and high-end fluorine new materials, leading to a substantial increase in chemical product shipments.

The company continues to focus on the high-end fine fluorochemical track, eliminating low-end and inefficient capacity, strengthening refined production control, and further compressing production costs. This has achieved the triple benefits of product price increases, sales volume growth, and cost optimization, driving a simultaneous rise in volume and profit for the core chemical business. Additionally, the company announced an interim dividend plan, proposing a distribution of 2.5 yuan per 10 shares, with a total dividend amount of 127 million yuan, fully confirming the stability and abundant profitability of the company's core chemical operations.

Risks in Industry Cycle Remain, Long-term Growth in High-end Fluorochemicals is Clear

From the perspective of the chemical industry cycle, fluorochemical categories possess strong cyclical characteristics, and the industry still faces stage-wise risks such as product price fluctuations, the launch of new capacity, and downstream demand recovery falling short of expectations.

However, from a medium-to-long-term perspective, the company's integrated fluorochemical barriers remain solid, and the high-end fluorine-containing fine chemical and polymer new material tracks offer ample growth space. With the continuous commissioning of high-end chemical capacity and the continuous upscaling of the product structure, combined with the continuation of industry prosperity, the growth resilience of the company's fluorochemical main business is expected to continue to materialize.