Jinyan Kaolin (Anhui Jinyan Kaolin New Materials) reported a sharp earnings contraction for the six-months ended 30 June 2026, as sluggish downstream demand and lower selling prices weighed on performance.
Financial Highlights • Revenue fell 19.1 % year on year to RMB 103.88 million, driven by weaker volumes across its major product lines. • Gross profit declined 26.9 % to RMB 33.45 million; gross margin narrowed to 32.2 % (1H 2025: 35.7 %). • Profit for the period dropped 64.8 % to RMB 7.97 million. • Administrative expenses jumped 38.9 % to RMB 15.08 million, offsetting part of the savings in cost of sales (-14.9 %). • Net finance costs inched up 8.0 % to RMB 3.28 million. • Earnings per share slid to RMB 0.08 (1H 2025: RMB 0.31). • The Board declared no interim dividend.
Segment Trends • Precision casting mullite remained the core contributor (71 % of sales) but revenue slipped 9.8 % to RMB 73.93 million on subdued end-market orders. • Refractory mullite revenue fell 19.5 % to RMB 24.38 million following the expiry of an outsourcing contract and slower commissioning of a new production line. • Raw kaolin powder & coke sales plunged 79.4 % to RMB 2.70 million as internal consumption was prioritised over external sales. • Ceramic fibre revenue eased 9.4 % to RMB 2.87 million.
Operational Metrics • Kaolin ore output decreased to 172.5 kt (1H 2025: 211.3 kt), aligning production with lower customer orders. • Mining cash costs totalled RMB 19.88 million for the period. • The Shuoli Mine reported total measured + indicated resources of 11.0 Mt and proven + probable reserves of 5.73 Mt as at 30 June 2026, unchanged during the period.
Cash Flow & Balance Sheet • Operating cash inflow shrank to RMB 8.19 million (1H 2025: RMB 39.73 million). • Capital expenditure reached RMB 24.55 million, mainly for environmental upgrades and equipment. • Net cash outflow from financing activities expanded to RMB 40.23 million after a final 2025 dividend of RMB 22.06 million. • Period-end cash and equivalents fell 27.6 % to RMB 148.94 million; net current assets stood at RMB 152.91 million. • Total assets slipped 3.6 % to RMB 1.03 billion, while interest-bearing borrowings totalled RMB 253.10 million. Gearing climbed to 27 % from 24 % at year-end 2025.
Capital Management Of the HK$124.30 million raised in the December 2025 IPO, HK$43.02 million (34.6 %) had been deployed by 30 June 2026. The largest allocation—HK$42.22 million—went to Phase I of a deep-processing mullite materials project. Approximately HK$81.28 million remains earmarked for expansion projects, an aluminosilicate R&D centre, loan repayments and working capital, in line with prospectus commitments.
Expansion & Strategy Management is pressing ahead with a 40,000 tpa refractory mullite line, four new shaft kilns, and a 60,000 tpa fine kaolin powder facility. Additional investments target automation, high-gradient magnetic separation and intelligent sorting to raise product purity and operating efficiency.
Post-Period Event On 27 August 2026 the Board approved an application to delist the company’s domestic shares from the National Equities Exchange and Quotations (NEEQ).
Outlook The company intends to fund capacity upgrades and product diversification with internal resources and remaining IPO proceeds, aiming to capture growth in precision-casting and refractory markets while mitigating demand volatility.