Tiande Chemical (00609) reported interim results for the six months ended 30 June 2026 showing mixed performance:

Revenue and Profitability • Revenue rose 16.1% year-on-year to RMB 1.08 billion, driven by higher sales volumes despite softer selling prices. • Gross profit inched up 4.5% to RMB 121.90 million; however, gross margin slipped 1.2 percentage points to 11.3% as rising energy and raw-material costs outpaced top-line gains and newly launched products remained below commercial scale. • Profit attributable to shareholders fell 33.5% to RMB 23.40 million, reflecting higher selling expenses (up RMB 10.00 million to RMB 50.75 million), increased administrative and other operating costs (up RMB 13.79 million to RMB 65.98 million), and a sizeable foreign-exchange loss on USD-denominated receivables and deposits. • Basic earnings per share declined to RMB 0.027 from RMB 0.040 a year earlier. • No interim dividend was declared.

Cost & Expense Dynamics • Selling expenses represented 4.7% of revenue (H1 2025: 4.4%), primarily due to stricter transportation safety requirements for hazardous products. • Administrative and other operating expenses climbed to 6.1% of revenue (H1 2025: 5.6%), mainly from RMB appreciation–related FX losses. • Finance costs fell 35.5% to RMB 4.12 million as the company leveraged lower-cost bank funding and supplier financing.

Balance Sheet and Liquidity • Cash, time deposits and pledged deposits totaled RMB 884.84 million; outstanding borrowings were RMB 400.63 million, leaving a net cash position of RMB 484.20 million. • Net current assets stood at RMB 812.39 million, while the gearing ratio remained not applicable as cash exceeded debt. • Trade and bills receivables increased 20.2% to RMB 391.25 million, with management noting that over 69% had been settled after the reporting date.

Operational Context Management attributed revenue growth to targeted market expansion and broader product applications, which offset price declines. Nevertheless, higher energy costs linked to geopolitical tensions and the ramp-up of new products compressed margins. Renminbi appreciation also generated notable FX losses.

Outlook The board highlighted ongoing global geopolitical risks and domestic regulatory tightening in China’s chemical sector as near-term challenges. The company plans to continue optimizing production processes, reinforcing cost controls and adjusting marketing strategies to enhance resilience and competitiveness.