Yuntianhua's net profit for the first half of the year was 2.934 billion; the phosphorus chemical sector remains strong.

On the evening of August 17, Yuntianhua (600096.SH) released its semi-annual report for 2026. In the first half of the year, the company achieved operating revenue of 22.821 billion yuan, net profit attributable to shareholders of 2.934 billion yuan, a year-on-year increase of 6.14% in net profit attributable to shareholders. Facing external pressures such as a sharp rise in sulfur prices and tight supply, the company's chemical and related core businesses maintained steady operation, while also proposing an interim dividend plan, with major chemical and resource projects steadily landing.

Interim dividend demonstrates operational confidence

The report simultaneously disclosed the profit distribution plan for the first half of 2026. The company plans to distribute a cash dividend of 2 yuan (tax included) for every 10 shares to all shareholders, totaling a proposed cash distribution of 365 million yuan.

Data shows that since 2023, the company's cumulative cash dividends (including share repurchases) over the past three years have reached 7.127 billion yuan, with a dividend payout ratio of 40.42%. The dividend level ranks among industry leaders, reflecting the enterprise's emphasis on shareholder returns and confidence in its own industrial profitability.

Steady operation of the entire chemical industry chain with multiple breakthroughs at the production end

Yuntianhua's business covers four major sectors: phosphate mining and beneficiation, fertilizers, new phosphorus chemical materials, and trade, constructing an integrated "mine-chemical-new material" industrial system. Upstream self-owned phosphate resources provide raw material guarantees for phosphate fertilizers and phosphorus-based chemical products; downstream extends to fine chemicals and new energy material tracks such as polyoxymethylene (POM) and iron phosphate; the trade sector mainly undertakes internal warehousing and logistics support to reduce costs and increase efficiency.

In the first half of 2026, the company's production management results were prominent, with 40 sets of major production facilities achieving long-term operation goals, and 3 sets of facilities refreshing their own longest operation records; energy consumption of core facilities continued to optimize, maintaining industry-leading levels.

Facing severe price fluctuations in bulk raw materials such as sulfur and sulfuric acid, the company coordinated supply guarantee and cost reduction through strategic procurement; at the marketing end, it seized market opportunities and expanded channels, achieving stable volume and price for major products.

In terms of core product output, subsidiaries produced 5.6662 million tons of finished phosphate ore in the first half; the fertilizer sector produced 2.0965 million tons of various phosphate fertilizers, 1.5402 million tons of urea, and 1.1988 million tons of compound fertilizers; in the phosphorus chemical and new materials sector, feed-grade monocalcium phosphate and calcium dihydrogen phosphate totaled 309,000 tons, yellow phosphorus 16,600 tons, iron phosphate 51,500 tons, and polyoxymethylene 62,400 tons, with the output of multiple core products ranking at the forefront of the industry.

Industry analysis indicates that in the first half of the year, the new energy industry drove demand for phosphate rock higher, high-grade phosphate rock prices remained high, and the phosphate fertilizer market moved up simultaneously. Yuntianhua's total fertilizer capacity exceeds 10 million tons per year, with the scale of phosphate fertilizers and urea ranking among the top in Asia; existing polyoxymethylene capacity is 90,000 tons/year, ranking high domestically; single-set capacity for feed-grade dicalcium phosphate is 500,000 tons/year, ranking first in China. Relying on multiple barriers of resources, scale, and technology, the enterprise is expected to continue benefiting from the boom cycle of the phosphorus chemical industry, and against the backdrop of improving downstream demand, product pricing power and profitability stability are expected to be further strengthened.

Accelerated layout of key chemical resource projects, increasing presence in high-value-added tracks

During the reporting period, the company's two key industrial projects advanced in an orderly manner, consolidating the resource foundation and striving for import substitution of high-end new materials.

In terms of phosphate resource expansion, the joint-stock company Juxin New Materials' 10 million tons/year mining engineering project has completed internal approval and is advancing relevant bidding and tendering work. The project construction period is 5 years, with capacity ramp-up expected from the end of 2029 to 2031, and full production reached in 2031, while supporting projects are implemented simultaneously. Yuntianhua's existing raw ore capacity is 14.5 million tons/year with complete beneficiation supporting capabilities. After the new project lands, the enterprise's self-sufficiency guarantee capability for phosphate raw materials will be further enhanced, laying a solid resource foundation for downstream fertilizer, fine phosphorus chemical, and lithium battery iron phosphate businesses.

In terms of high-end new material upgrades, wholly-owned subsidiary Tianju New Materials plans to invest a total of 1.857 billion yuan to build a 100,000 tons/year high-end copolymer polyoxymethylene resin project in Chongqing. Project initiation has been completed, and construction is expected to start at the end of 2026. Currently, Yuntianhua's existing polyoxymethylene capacity is 90,000 tons/year, and the product is a mainstream variety for domestic import substitution. After the completion of the new project, the enterprise's polyoxymethylene business will shift from scale expansion to quality upgrading, expanding into high-value-added application scenarios such as new energy and precision instruments, further improving the profitability of the polyoxymethylene sector.

Strengthening R&D innovation and perfecting the full-chain industrial layout

Yuntianhua stated that it will continue to promote strengthening, extending, and supplementing the chain, consolidating the advantages of traditional fertilizer and phosphorus chemical businesses, while expanding the increment of new materials. Subsequently, it will continue to increase R&D investment, integrate internal R&D forces, tackle key technical difficulties in the industrial chain, accumulate industrialized technology reserves, and provide technical support for the enterprise's medium-to-long-term high-quality development.

>Risk Warning: The above content is for reference only and does not constitute investment advice. Industry cycle fluctuations, project construction progress falling short of expectations, and raw material price fluctuations will all bring uncertainty to the company's operations.