China Risun: Interim Profit Soars 376% on Strong Spreads, New-Energy Push and Acquisition of Binhai Energy Stake

Bulletin Express
Sep 28

China Risun Group Limited reported interim revenue of RMB 21.86 billion for the six months ended 30 June 2026, up 5.2% year-on-year, while profit surged 376.0% to RMB 244.36 million. Basic earnings per share climbed to RMB 0.0477. The board declared an interim dividend of RMB 0.0144 per share, equivalent to a payout of at least 30% of attributable profit.

Operating Metrics • Coke output fell 13.8% to 9.40 million tonnes, while refined-chemicals volume slipped 10.3% to 2.60 million tonnes. • High-purity hydrogen production declined 17.4% to 9.20 million Nm³, but lithium-battery anode material output jumped 63.9% to 42.00 thousand tonnes. • The average ex-VAT coke price rose 11.3% to RMB 1,515 per tonne as the group maintained a coal-coke spread of roughly RMB 300 per tonne. Caprolactam prices improved 13.3% to RMB 9,701 per tonne.

Segment Performance • Refined chemicals remained the largest revenue contributor at RMB 9.48 billion (+4.2%), delivering gross profit of RMB 925.57 million (+41.4%) and a margin of 9.8% (1H25: 7.2%). • Coke and coking chemicals generated RMB 6.97 billion (+9.6%) with gross profit of RMB 952.58 million; margin edged up to 13.7%. • Operation-management services revenue climbed 46.2% to RMB 1.86 billion after securing a new mandate for Wulong Magnesium; gross profit more than doubled to RMB 150.23 million. • Trading revenue contracted 20.2% to RMB 2.98 billion as low-margin contracts were trimmed; gross margin widened to 6.5%. • New-energy products (anode materials, hydrogen) more than doubled revenue to RMB 523.30 million, swinging to a segment gross profit of RMB 58.26 million from a loss a year earlier. • Property and other income contributed RMB 52.10 million.

Margin and Cost Trends Group gross margin improved to 10.6% from 8.1% on wider product spreads and cost control. Selling and distribution expenses rose 7.6% to RMB 758.88 million, mainly on higher rail logistics costs, while administrative expenses fell 8.9% to RMB 511.21 million.

Capital Structure and Cash Flow Net cash from operations strengthened to RMB 2.53 billion (1H25: RMB 1.86 billion). Capital expenditure and investments totalled RMB 4.56 billion, including the RMB 571.20 million purchase of a 14.5% stake in Shenzhen-listed Tianjin Binhai Energy & Development Co., marking Risun’s formal entry into lithium battery materials. Net borrowings increased, lifting total interest-bearing debt to RMB 41.40 billion; gearing rose to 2.6× (FY25: 2.3×). The group held cash and equivalents of RMB 4.45 billion and unutilised banking facilities of RMB 9.85 billion.

Strategic Developments Risun is executing its “multi-industry, multi-region” strategy: • Binhai Energy now contributes green-power, graphitization and anode-material capacity, expanding the product portfolio to 63 items across six categories. • Construction continues on silicon–carbon (2,000 t/y), porous-carbon (1,000 t/y) and integrated anode-material (20 t/d) lines, alongside a 430 MW phase-II power-storage project. • Core chemical lines such as caprolactam and amino alcohols benefited from tightened industry supply, while the 600 kt/y methanol unit maintained stable output and profitability. • Overseas subsidiary Risun Wei Shan in Indonesia posted revenue growth of 976% and a 1,854% jump in parent-company net profit, aided by higher coking-coal sales and prices.

Outlook Management’s seventh Five-Year Plan (2026-2030) targets enlarged capacities in coke, refined chemicals and new-energy products, deeper integration of operation-management services, and further M&A to reinforce its supply-chain and cost advantages. The group will also pursue hydrogen-energy hubs in the Beijing-Tianjin-Hebei region and accelerate battery-material projects to underpin a “third growth curve.”

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