Kingfa Tech H1 2026 Revenue RMB 34.118 Billion, Net Profit RMB 685 Million

Kingfa Technology released its 2026 semi-annual report. In the first half, the company achieved operating revenue of RMB 34.118 billion, up 7.85% year-on-year; total profit of RMB 812 million, up 35.91%; and net profit attributable to shareholders of RMB 685 million, up 17.02%. The company stated that the increase in total profit was mainly due to volume and profit growth across modified plastics, specialty engineering plastics, biodegradable plastics, and medical health products, coupled with improved gross margin on trading goods.

The modified plastics segment remains the core revenue driver. In the first half, the segment sold 1.4744 million tons of finished products, up 12.65% year-on-year; revenue was RMB 18.167 billion, up 10.28%. Among them, global sales of automotive materials were 616,700 tons, up 10.07%; home appliance materials 278,000 tons, up 9.02%; electronic and electrical materials 230,100 tons, up 11.86%; new energy materials 56,300 tons, up 25.11%; and consumer electronics materials 73,000 tons, up 23.31%.

The new materials segment grew rapidly. In the first half, finished product sales were 178,300 tons, up 38.75% year-on-year; gross profit was RMB 601 million, up 58.23%. Among them, biodegradable plastics sales were 144,500 tons, up 40.7%; specialty engineering plastics sales were 21,700 tons, up 46.62%, with market share expanding in emerging sectors such as AI computing power and new energy; and high-performance fiber-reinforced composite materials achieved revenue of RMB 272 million, up 28.91%.

The medical health segment turned profitable. In the first half, sales revenue was RMB 807 million, up 72.44% year-on-year; gross profit increased by RMB 204 million year-on-year. Among them, nitrile glove sales were 6.181 billion pieces, up 51.64%.

The company's upstream petrochemical subsidiaries remained loss-making. Ningbo Kingfa New Materials Co. , Ltd. achieved revenue of RMB 2.799 billion in the first half, with a net loss of RMB 684 million, a loss expansion of 114.84% year-on-year; Liaoning Kingfa Technology Co. achieved revenue of RMB 5.222 billion, with a net loss of RMB 650 million. The combined net losses of the two subsidiaries were approximately RMB 1.334 billion. The expansion of Ningbo Kingfa's loss was mainly due to the completion of the "1.2 million tons/year polypropylene thermoplastic elastomer (PTPE) and modified new materials integration project" being transferred to fixed assets on April 30, 2025, coupled with significant fluctuations in raw material prices.

In overseas business, the company's overseas revenue in the first half was RMB 6.295 billion, up 24.46% year-on-year. Kingfa India's net profit was RMB 101 million, up 63.75%; Kingfa Vietnam's net profit was RMB 73 million, up 420.85%.