On July 8, 2026, Zhejiang Yongtai Technology Co.,Ltd. (SZ: 002326) announced that it had conducted an institutional investor briefing, with participation from Shenwan Hongyuan Group Co., Ltd. The details of the briefing are outlined below.

Company Overview and Business Profile

Established in 1999 and listed in 2009, the company is headquartered in Taizhou, Zhejiang Province. It is a globally leading manufacturer of fluorine-based fine chemicals and one of the few companies in the industry that spans both inorganic and organic fluorine chemical sectors. Centered on fluorine technology, its business covers new materials (including new energy lithium battery and fluorinated fluid materials), pharmaceuticals, plant protection, and trading. Within these sectors, the company offers a wide range of products across the upstream, midstream, and downstream industrial chains. With production bases located in regions such as Zhejiang, Inner Mongolia, Fujian, and Guangdong, its existing, under-construction, and planned production capacities are sufficient to support the growth of its core businesses. Supported by a comprehensive industrial chain and product portfolio, the company can also flexibly respond to varying market demands.

Financial Performance and Operational Review

For the first quarter of 2026, the company reported operating revenue of 16.93 billion yuan, a year-on-year increase of 59.70%. Net profit attributable to shareholders reached 105 million yuan, surging 889.50% compared to the same period last year. This significant performance growth was primarily driven by a simultaneous increase in both volume and price for core products within the company's lithium battery materials segment, leading to a substantial rise in the segment's profitability. Currently, operations across all business segments are proceeding normally. Management will continue to deepen efforts in cost reduction and efficiency improvement, striving to sustain and enhance profitability levels.

Key Discussion Points from the Q&A Session

1. What are the core drivers behind the company's significant projected earnings growth for the first half of the year?

Based on the company's performance forecast for the first half of 2026, net profit attributable to shareholders is expected to be between 265 million and 330 million yuan, with adjusted net profit ranging from 238 million to 303 million yuan. The growth is primarily attributed to rapid demand expansion in the new energy vehicle and energy storage markets. Both sales volume and prices for the company's core lithium battery materials, including lithium hexafluorophosphate, lithium bis(fluorosulfonyl)imide (LiFSI), vinylene carbonate (VC), and electrolyte, have increased year-on-year. Additionally, the 5,000-ton-per-year VC production capacity newly commissioned at the end of 2025 is steadily ramping up. Together, these factors form a dual engine driving both revenue expansion and improved operational efficiency, resulting in the projected year-on-year earnings growth.

2. What is the current status of the company's VC (vinylene carbonate) capacity construction and sales?

The company's current operational VC production capacity is 10,000 tons per year. Production scheduling is dynamically adjusted based on downstream customer orders, resulting in a high degree of alignment between production and sales. An additional 20,000 tons per year of capacity is under construction, with active efforts underway to advance the project and achieve production. Furthermore, a new project for an annual production of 50,000 tons of VC and supporting facilities is still in the preliminary preparation stage. The pace of this project's construction will be reasonably managed in consideration of downstream order situations and changes in industry sentiment.

3. Is there a risk of idle capacity once all VC projects are fully operational?

The company's VC products are used both for in-house electrolyte production and for direct external sales. Currently, the company has signed long-term agreements with CATL for electrolyte and VC products and has established cooperative relationships with several other well-known domestic battery manufacturers. Additionally, the VC project is being implemented in phases, which helps mitigate the risk of idle capacity. However, project construction and product sales are subject to multiple factors, including changes in the market environment, industry cycle fluctuations, and contract fulfillment, which still entail a degree of uncertainty.

4. With a significant portion of sales locked in via long-term agreements, is there a risk of over-reliance on a single customer structure?

The company's long-term agreements are primarily concentrated in the lithium battery materials segment, which accounted for 40.55% of the company's total revenue in 2025. The company's overall business structure encompasses four main segments: pharmaceuticals, plant protection, lithium battery materials, and trading, resulting in a diversified overall customer base. Within the lithium battery materials segment, the company employs a sales mechanism combining long-term agreements and short-term orders. This approach secures long-term demand from key core customers while maintaining sales flexibility and has established stable cooperative relationships with several prominent domestic battery manufacturers.

5. What is the current capacity utilization rate for the company's lithium battery products? Is production fully aligned with sales?

The company adopts a production model based on sales orders, supplemented by reasonable inventory preparation according to market demand. Currently, there is a high degree of alignment between production and sales for its lithium battery products. The company dynamically adjusts production schedules based on downstream customer demand to ensure stable supply of core products. At the same time, it is steadily advancing the ramp-up and release of new production capacities to further enhance supply capabilities.

6. What are the technical characteristics of the company's lithium replenishment agent products?

The company's key research and development focus is on a series of lithium trifluoromethanesulfinate-based lithium replenishment agents. These products offer comprehensive performance advantages, including precise compensation for active lithium loss in batteries, significantly improved cycle life, and enhanced energy density. In terms of product compatibility, this series of lithium replenishment agents can be applied in liquid, semi-solid, and all-solid-state battery systems, covering a wide range and meeting the diverse battery technology pathway requirements of downstream customers.

7. What are the application scenarios for the company's fluorinated fluid products?

The company's fluorinated fluid products are suitable for various specialized scenarios, including semiconductor manufacturing, data center cooling, 5G base station liquid cooling, energy storage thermal management, and chip packaging. The company is currently actively conducting multi-batch product testing and collaboration discussions with downstream customers in these application areas to promote the commercialization of its products across different scenarios. Presently, this related business constitutes a relatively small proportion of the company's overall revenue.

8. What is the current strategic positioning of the lithium replenishment agent and fluorinated fluid businesses within the company?

Lithium replenishment agents and fluorinated fluids represent new strategic industrial directions that the company is actively cultivating. They are crucial components of the company's strategy to develop new growth drivers and build a diversified business portfolio. The lithium replenishment agent project will further complete the company's full-industry-chain product matrix for lithium battery materials. The fluorinated fluid business holds the potential to enter emerging sectors such as data center liquid cooling. Currently, both businesses are in the early stages of industrialization and are expected to contribute limitedly to overall performance in the short term. The company will coordinate the advancement of related project construction and market expansion efforts to steadily enhance the maturity of these businesses.

Zhejiang Yongtai Technology Co.,Ltd. (SZ: 002326) is primarily engaged as a manufacturer of fluorine-based pharmaceuticals, plant protection products, and new energy materials. According to its first-quarter 2026 report, the company achieved operating revenue of 16.93 billion yuan, a year-on-year increase of 59.7%. Net profit attributable to shareholders was 105 million yuan, up 889.5% year-on-year. Adjusted net profit was 83.1567 million yuan, rising 558.81% year-on-year. The debt-to-asset ratio was 75.38%. Investment income was 12.9003 million yuan, financial expenses were 68.6423 million yuan, and the gross profit margin was 24.09%. Margin trading data indicates that over the past three months, the net outflow from margin financing was 35.861 million yuan, decreasing the margin financing balance, while net inflow from securities lending was 4.6117 million yuan, increasing the securities lending balance.