Wuhan Youji Holdings Limited released its 2026 interim results (six months ended 30 June), highlighting a sharp rebound in profitability despite modest top-line pressure.

Financial Highlights • Revenue edged down 2.20% year on year to RMB 1.41 billion, reflecting deliberate volume moderation and softer downstream demand.

• Gross profit expanded 60.30% to RMB 261.29 million; gross margin improved 7.3 ppts to 18.6% on higher selling prices and tighter cost control.

• Net profit attributable to shareholders surged 126.60% to RMB 87.68 million, lifting net margin to 6.2% (2025: 2.7%).

• Basic and diluted EPS doubled to RMB 0.94 (2025: RMB 0.42).

Segment Performance • Toluene oxidation products contributed 57.8% of revenue. Sales fell 9.03% to RMB 813.69 million, but unit prices rose 12.9%, raising segment gross margin to 20.6% (2025: 12.9%).

• Toluene chlorination products held broadly flat at RMB 346.63 million (24.6% of total revenue). Gross margin climbed to 25.4% (2025: 13.5%) on higher prices and lower unit costs.

• Trading revenue grew 26.07% to RMB 247.82 million, representing 17.6% of group revenue. Segment margin increased to 2.3% (2025: 0.4%).

Geographic Mix Domestic sales accounted for 76.0% of revenue at RMB 1.07 billion. Exports were stable at RMB 338.04 million, contributing 24.0% despite EU anti-dumping investigations.

Cost & Expense Dynamics Selling and distribution costs eased 3.9% to RMB 11.85 million (0.8% of revenue). Administrative expenses rose 11.3% to RMB 55.77 million driven by performance bonuses. R&D spending declined 7.60% to RMB 67.16 million as key projects moved to validation. Other expenses increased to RMB 13.69 million, mainly from foreign-exchange losses.

Balance Sheet & Liquidity • Cash and cash equivalents stood at RMB 145.30 million; pledged deposits were RMB 47.33 million. • Interest-bearing debt totalled RMB 1.40 billion, up 4.60% from end-2025; net debt to equity eased to 163.6% (31 Dec 2025: 166.6%). • Unused credit lines of RMB 812 million underpin liquidity; cash from operations reached RMB 70.48 million versus RMB 2.50 million a year earlier.

Capital Expenditure & Expansion Investments of RMB 97.10 million were channelled mainly into property, plant and equipment, including Phase II expansion of the Hubei Xinxuanhong Plant (additional 160,000 t/year chlorination and 210,000 t/year fine chemical capacity). Initial modules are scheduled to start up in 2H 2026, with phased completion through 2029.

Dividend No interim dividend declared. A final dividend of RMB 29.99 million (RMB 0.3215 per share) for FY 2025 was paid during the period.

Strategic Outlook Management expects continued industry volatility amid Middle-East geopolitical tensions and uneven global demand. Planned actions include prudent volume management, dynamic pricing, broader international sales coverage, R&D focus on high-value derivatives, and ongoing cost-efficiency initiatives.

Post-Period Event On 5 August 2026 the company completed re-domiciliation from the Cayman Islands to Hong Kong; the move does not alter operating continuity.

Audit Review Ernst & Young conducted a review of the interim financial information in accordance with HKSR 2410 and issued an unqualified conclusion.