Huaertai disclosed its semi-annual report for the first half of 2026. Net profit attributable to the parent company was only 14.94 million yuan, a sharp year-on-year decline of 49.06%, leaving the company in a predicament of rising revenue but falling profit. Operating revenue for the same period reached 1.107 billion yuan, up 10.28% year-on-year, but net profit fell by 14.39 million yuan compared with the same period last year, nearly halving. Bulk chemicals, which accounted for 78.36% of revenue, had a gross margin of just 7.87%, down 1.45 percentage points year-on-year. The overall gross margin for basic chemicals was 9.13%, down 2.60 percentage points year-on-year. Selling, administrative, and research and development expenses all rose year-on-year, further squeezing profit margins. The company acknowledged multiple pressures, including tightening environmental regulations, production safety risks, macroeconomic fluctuations, and changes in the international situation.
Anhui Huaertai Chemical Co LtdNet profit plunged 49.06% year-on-year due to rising costs and low margins, directly hitting earnings.