Henan-based hydrogenated chemical producer Jinyuan HChem reported a sharp turnaround in the first half of 2026, posting net profit of RMB 41.57 million compared with a RMB 9.30 million loss a year earlier.

Revenue rose 7.02% year-on-year to RMB 1.54 billion, supported by a 6.3% increase in sales volume and a 3.7% rise in average selling prices for hydrogenated benzene-based chemicals. Gross profit expanded nearly fivefold to RMB 112.75 million, lifting gross margin to 7.3% from 1.6% in the prior-year period.

Earnings per share reached RMB 0.04 versus a loss per share of RMB 0.02 in H1 2025. The board declared no interim dividend.

Segment performance • Hydrogenated benzene-based chemicals generated RMB 1.22 billion, or 79% of total revenue, with segment margin rebounding to 5.3% (-1.6% a year earlier). Segment profit reached RMB 64.48 million after a RMB 17.99 million loss in H1 2025. • Energy products—coal gas, LNG and hydrogen—delivered RMB 289.58 million, up 2.4%, and a 15.2% margin. Segment profit grew 22.3% to RMB 44.13 million. • Trading revenue fell 41.7% to RMB 27.27 million due to lower diesel and hydrogen sales at filling stations; margin improved to 10.4%.

Operating metrics The group maintained full-capacity utilisation: annual capacities stand at 400,000 tonnes for hydrogenated benzene-based chemicals, 72,000 tonnes for LNG and 317 million m³ for hydrogen (including joint venture output). Hydrogen sales through five refuelling stations totalled 477 tonnes, down from 810 tonnes in the prior-year period.

Investment and capex Jinyuan HChem invested RMB 2.20 million in upgrading LNG production facilities and RMB 2.26 million in water-system renovations. Hydrogen refuelling infrastructure continued to expand, funded by internal resources, IPO proceeds and bank loans.

Balance sheet and cash flow Total assets edged up to RMB 1.52 billion, while equity increased to RMB 1.09 billion. Bank borrowings declined to RMB 279.24 million, cutting the gearing ratio to 25.6% from 27.3% at year-end 2025.

Operating cash inflow registered RMB 31.78 million; free cash flow turned positive despite RMB 25.65 million of capex. Cash and cash equivalents stood at RMB 145.75 million on 30 June 2026.

Key ratios • Return on equity (annualised): 7.5% (-3.5% H1 2025) • Return on assets (annualised): 5.5% (-1.1% H1 2025)

No material acquisitions, disposals, contingencies or covenant breaches were reported during the period.