On August 11, the company officially released its 2025 semi-annual report. Leveraging its strategic focus and core competitiveness, the company achieved a double leap in operating performance and development quality—first-half revenue reached RMB 2.445 billion, a year-on-year increase of 12.39%; net profit attributable to shareholders of the listed company was RMB 271 million, a surge of 140.82% year-on-year, laying a solid foundation for high-quality development throughout the year.
The resonance between industry policy dividends and market demand became the core driving force for the company’s performance growth. Since my country implemented quota management for third-generation refrigerants, the industry’s supply and demand pattern has shifted from “incremental competition” to “existing market competition.” Relying on its HFCs refrigerant quota advantage, the company accurately seized the opportunity of rising product prices, with fluorocarbon chemicals revenue increasing by 26.02% year-on-year, becoming the “main engine” of performance growth. Meanwhile, the fluorinated polymer materials business achieved a breakthrough against the trend, with Shaowu Yonghe achieving profitability for three consecutive quarters. Coupled with improved production line efficiency and cost control, the company’s overall gross profit margin increased to 25.29%, significantly enhancing its profitability.
A complete industry chain layout serves as a “moat” for the company to withstand industry fluctuations. Upstream, the company holds three fluorite mining rights and two exploration rights, solidifying its cost advantage amidst increasingly scarce fluorite resources. Midstream, the company has built a complete production chain from hydrofluoric acid to fluorocarbon chemicals to fluorine-containing polymer materials, possessing a large-scale production capacity of 135,000 tons of anhydrous hydrofluoric acid, 190,000 tons of elemental fluorocarbon chemicals, and 82,800 tons of fluorine-containing polymer materials and monomers, with economies of scale continuously being realized. Downstream, the two major brands, “Binglong” refrigerant and “Freon-resistant” polymer materials, are highly trusted in domestic and international markets, with an overseas sales network covering over 100 countries and regions, and a global expansion strategy progressing steadily.
Technological innovation is the company’s “key lever” for seizing the high-end market. In the first half of the year, the company’s R&D investment increased by 3.58% year-on-year, accumulating 78 valid authorized patents. In the field of fourth-generation environmentally friendly refrigerants, large-scale production capacity is progressing smoothly. In the field of fluorinated polymer materials, the FEP EW-621DI product, through optimized dielectric properties, is adapted to the needs of high-end manufacturing. In the field of fluorinated fine chemicals, emerging products such as perfluorohexanone fire extinguishing agents and electronic immersion coolants are accelerating industrialization, opening up new avenues for business growth.
Looking to the future, we are solidifying our growth foundation through phased capacity expansion. Projects under construction, including 80,000 tons of hydrofluoric acid, over 30,000 tons of fluorinated polymer materials, and 43,000 tons of fourth-generation refrigerants, are progressing as planned. Simultaneously, we consistently prioritize shareholder returns, distributing a total of RMB 117 million in dividends in 2024, representing a year-on-year increase of 105.82%, with a dividend payout ratio of 46.71%. Since listing, we have distributed a cumulative total of RMB 309 million in dividends, demonstrating our confidence in development through concrete actions.
In the second half of the year, we will continue to seize the opportunities presented by the industry’s high growth, deepen our high-end and globalization strategy, and further consolidate our leading position in the upgrading of the fluorochemical value chain, creating greater value for all shareholders.
