Dongyue Silicone 2026 H1 Net Profit Up 916.22% to RMB 429 Million

Dongyue Silicone disclosed its 2026 semi-annual report on August 20. During the reporting period, the company achieved operating revenue of RMB 2.665 billion, up 14.5% year on year; net profit attributable to shareholders of the listed company was RMB 429 million, up 916.22% year on year; basic earnings per share was RMB 0.36, up 800% year on year.

The company stated that during the reporting period, due to improvements in the market environment and industry supply-demand patterns, prices of major silicone products rose compared with the same period in 2025. The average market price of silicone DMC was approximately RMB 14,400 per tonne, up about 13% year on year. Meanwhile, the price of industrial silicon, a key upstream raw material, remained at a relatively low level, leading to lower production costs and higher gross margins. The company continued to advance refined management and internal cost-reduction efforts, maintaining stable production operations, effectively controlling costs and expenses, and enhancing profitability.

From the industry supply side, no new silicone monomer production capacity was commissioned in China in the first half of 2026, limiting short-term supply growth. As of the end of June 2026, domestic silicone DMC capacity stood at approximately 3.44 million tonnes. Industry self-discipline in the silicone sector continued to improve, with operating rates maintained within a relatively reasonable range, easing supply pressure. Affected by high energy costs and stricter environmental regulations, leading overseas chemical companies further reduced their silicone monomer capacity. In July 2026, Dow announced the closure of its silicone basic siloxane plant in the United Kingdom, involving capacity of 145,000 tonnes, accounting for approximately 30.5% of total European capacity. Currently, China's silicone capacity (converted to DMC) accounts for nearly 80% of the global total, and industry concentration continues to rise.

On the export front, China's silicone maintained a net export pattern in the first half of 2026. According to data from the General Administration of Customs, cumulative exports of primary-form polysiloxanes in the first half of 2026 reached 319,200 tonnes, up 14.56% year on year. Since April 1, 2026, export tax rebates for primary-form polysiloxanes were abolished, and the policy adjustment has accelerated the industry's product structure upgrade toward high value-added and refined products.

On the demand side, affected by the combined factors of supply contraction, weak traditional demand, and export fluctuations, apparent consumption of silicone intermediates in China declined year on year during the reporting period. Demand from traditional downstream sectors such as construction and textiles contracted, but demand from emerging industries including photovoltaics, new energy vehicles, electronic packaging, AI computing power, and high-end manufacturing continued to be released.

Dongyue Silicone is one of the largest producers in China's silicone industry, with an annual production capacity of 600,000 tonnes of silicone monomer. It has formed an integrated production system covering silicon powder processing, silicone monomer, intermediates, and downstream deep-processed products such as silicone rubber, silicone oil, silicone resin, and fumed silica. As of the end of the reporting period, the company had more than 600 downstream product grades including silicone rubber, silicone oil, silicone resin, and fumed silica.