Xiangtan Electrochemical Scientific Co Ltd

Xiangtan Electrochemical has released a draft of its 2026 restricted stock incentive plan, proposing to grant 8.8935 million restricted shares to 158 incentive recipients, accounting for 1.41% of the company's total share capital, at a grant price of 6.26 yuan per share. The incentive recipients include company directors, senior management, middle management, and key business personnel.

Xiangtan Electrochemical released its 2026 interim report, with net profit attributable to the parent company of 225 million yuan, an increase of 98.98 million yuan compared with the same period last year, up 78.63% year on year. The company's total operating revenue was 942 million yuan, up 5.07% from the same period last year, achieving growth for two consecutive years. Net cash inflow from operating activities was 67.65 million yuan, and diluted earnings per share was 0.36 yuan, up 80.00% year on year. The company's latest asset-liability ratio was 33.32%, down 7.91 percentage points from the same period last year; the latest gross margin was 22.09%, up 3.62 percentage points from the previous quarter; and the latest return on equity was 6.42%, up 2.30 percentage points from the same period last year.

Xiangtan Electrochemical disclosed its 2026 interim report. In the first half, it achieved operating revenue of 942 million yuan, up 5.07% year on year. Net profit attributable to shareholders of the listed company was 225 million yuan, up 78.63% year on year. Basic earnings per share were 0.36 yuan. The year-on-year increase in performance for the reporting period was mainly due to a year-on-year increase in investment income from associates. In the second quarter, the company's main business operating efficiency improved quarter on quarter compared with the first quarter.

Xiangtan Electrochemical announced plans to transfer its 70% stake in the electromechanical company to New Development Group and the remaining 30% stake to Electrochemical Group for a transfer price of 32.54 million yuan. It will also transfer its entire 100% stake in the trading company to New Development Group for 50.12 million yuan, bringing the total transaction value to 82.66 million yuan. This deal constitutes a related-party transaction and aims to divest non-core assets while sharpening the focus on the core manganese-based new materials business. Upon completion, the company will no longer hold any equity in the electromechanical or trading companies, and both will be deconsolidated from its financial statements. The proceeds will primarily be used to replenish working capital. The electromechanical company posted a loss of 5.12 million yuan in 2025 and a loss of 1.38 million yuan in the first four months of 2026. The trading company recorded a profit of 437,100 yuan in 2025 and a profit of 754,300 yuan in the first four months of this year, though its operating cash flow remained persistently negative. The company expects net profit attributable to shareholders of 180 million to 261 million yuan for the first half of 2026, representing year-on-year growth of 42.99% to 107.33%.

Xiangtan Electrochemical disclosed its earnings forecast, expecting net profit attributable to the parent company for the first half of 2026 to be between 180 million yuan and 261 million yuan, representing a year-on-year increase of 42.99% to 107.33%. Deducted non-recurring net profit is expected to be between 177 million yuan and 258 million yuan, up 59.76% to 132.87% year-on-year, with basic earnings per share ranging from 0.29 yuan to 0.41 yuan. The company stated that the profit growth was mainly due to an expected year-on-year increase in investment income from associates. At the same time, prices of upstream raw materials such as sulfuric acid and pyrite rose sharply. The company actively passed on costs, maintained a stable operating foundation, and its core business performance in the second quarter improved compared with the first quarter.