Dongyue Group (00189) has announced its interim results for 2026, with revenue reaching RMB 8.06 billion, an 8% increase year-on-year. Profit attributable to shareholders surged 31.84% to RMB 1.027 billion, while basic earnings per share stood at RMB 0.6.
During the first half of the year, the Group elevated its operating performance to a new level despite a complex and volatile business environment. Driven by overall market conditions in the fluorine and silicon industries, prices for several core products experienced upward adjustments across varying degrees. Although some raw material costs rose due to international dynamics, the Group's efficient cost control framework effectively reduced overall expenses, leading to an 8-percentage-point improvement in gross margin year-on-year. Profit attributable to shareholders grew approximately 31.80% compared to the same period last year, marking another strong operational achievement.
The Group maintains a strong focus on R&D and independent innovation, backed by robust scientific research capabilities that have become a core competitive advantage. Recent years have seen substantial market positioning in high-end polymers, high-purity materials, and chlor-alkali ion-exchange membranes, which has generated positive market feedback, with revenue contribution from new products continuing to rise. In the first half, the Group pushed forward various research projects, finalizing multiple industrialization and research initiatives, with projected new investments exceeding RMB 1 billion.
R&D costs during the period climbed 14.98% year-on-year, representing 5.27% of revenue. The Group secured 12 new patents, bringing the total to 478 at period-end, supported by a research team of 645 members, of whom 46.67% hold doctoral or master's degrees.
Safety and environmental protection remain key pillars for stable production operations. Despite unexpected market fluctuations, the Group maintained orderly production in the first half, underpinning substantial earnings growth. No serious safety incidents were recorded, external wastewater discharge fully met standards with a 5.45% reduction in total volume, and solid waste generation fell by 17.57% year-on-year. Additionally, adjustments to hazardous waste disposal procedures significantly lowered related costs.
Several key projects were completed and commenced operations during the period, including the New Energy Center and the R32 refrigerant expansion project. The New Energy Center, which took one and a half years to build, is now operational, enabling the Group to reduce energy consumption, enhance environmental compliance standards, improve operational stability, and lower safety risks. The R32 refrigerant expansion project also came online in the first half, adding 49,000 tonnes of annual production capacity for R32, thereby strengthening the Group's ability to respond to future market shifts in refrigerants.