Sinofert Holdings (Sinofert) reported resilient interim results for the six months ended 30 June 2026, navigating geopolitical shocks and raw-material inflation to sustain growth and profitability.

Key Financials • Revenue climbed 10.64% year-on-year (YoY) to RMB 16.28 billion, driven mainly by higher selling prices across fertilizer categories. • Gross profit held steady at RMB 2.03 billion; gross margin softened 1.3 ppts to 12.5% as cost pressure from sulphur and other inputs intensified. • Profit before tax increased 10.4% to RMB 1.50 billion; profit attributable to owners rose 6.7% to RMB 1.18 billion, implying a net margin of 7.24% (-0.26 ppt YoY). • Basic earnings per share reached RMB 0.1677 (1H25: RMB 0.1572). • Operating cash outflow of RMB 1.12 billion contrasted with a RMB 38.81 million inflow a year earlier, reflecting higher working-capital deployment. • Cash and cash equivalents stood at RMB 2.72 billion; net current assets improved to RMB 3.71 billion, while the current ratio strengthened to 1.39 (FY25: 1.24). • Total interest-bearing liabilities increased 26.0% to RMB 1.90 billion; debt-to-equity ratio remained low at 15.57% (FY25: 13.16%). • Interim dividend: none declared.

Segment Performance 1. Basic Business (potash, phosphate, sulphur trading) – Revenue: RMB 8.51 billion; segment profit stable at RMB 716.85 million. – Potash import volume rose 24% amid tight global supply; bio-potash sales grew 34%.

2. Growth Business (compound & special fertilizers, crop protection, seeds) – Revenue: RMB 6.25 billion; segment profit up 13.3% to RMB 476.27 million. – Bio-fertilizer sales reached 1.17 million t, up 11%; “Bio+” high-end products volume advanced 28%.

3. Production Business (Sinochem Yunlong, Sinochem Fuling, Sinochem Changshan) – Revenue: RMB 1.52 billion; segment profit flat at RMB 301.87 million. – Yunlong’s MCP/DCP output 0.19 million t; profit before tax RMB 365 million (+18%). – Fuling posted a RMB 54 million pre-tax loss due to sulphur cost surge. – Changshan returned to marginal profit; fertilizer output up 35.8% to 0.23 million t.

Cost & Efficiency Measures • Selling and administrative expenses fell by RMB 66 million YoY, reflecting stringent cost control. • Centralised procurement and process optimisation delivered RMB 108 million in cost savings. • Operational excellence initiatives curtailed finance costs 8.7% to RMB 21 million.

Financial Position • Inventories increased 9.9% to RMB 6.40 billion; turnover days lengthened to 78 due to strategic stock-build for summer and autumn demand. • Trade and bills receivables rose 48.2% to RMB 563.08 million, with turnover steady at five days. • Unutilised banking facilities totalled RMB 14.89 billion, underpinning ample liquidity.

Strategic Highlights • Continued advancement of “Bio+” strategy: 10 R&D breakthroughs, launch/readiness of four new products, bio-fertilizer gross profit share lifted to 31% (+3 ppts). • Over 2,500 demonstration fields and 45,000 on-site technical service events supported more than 0.5 million farmers, reinforcing channel penetration and brand loyalty. • ESG progress recognised with SynTao Green Finance A– rating.

Outlook Management anticipates persistent input-cost volatility and intensifying competition in 2H26. Priorities include accelerating technology-driven product upgrades, enhancing cost discipline, and safeguarding domestic fertilizer supply to support China’s food-security objectives.

No interim dividend was proposed for 1H26; the FY25 final dividend of RMB 423.22 million was paid in the period.