Oriental Yuhong: Asphalt Reserves Lift H1 2026 Engineering Gross Margin by 2.81% YoY
Oriental Yuhong said its asphalt reserves and price adjustments lifted its engineering channel gross margin by 2.81% year on year in the first half of 2026. The company stocked asphalt during the winter to counter sharp rises in bulk raw material prices, which have pressured margins. Combined with industry-wide price increases and a continued push toward higher-value waterproofing products, the measures supported profitability and were reflected in first-half financial results, in line with the company's operational plans.
Oriental Yuhong implemented asphalt reserves in the first half of 2026 to mitigate fluctuations in raw material prices. Since 2026, prices of asphalt and other bulk raw materials have risen sharply. The company, together with other leading industry players, pursued coordinated product price increases to offset higher costs. Asphalt is primarily used in engineering operations, and its price movements have the most pronounced effect on the gross margin of the engineering group. Through earlier winter asphalt stocking and the gradual implementation of price adjustments, the company's engineering channel gross margin rose by 2.81% year on year in the first half.
The engineering group has continued to optimize its product mix. In 2026, it stepped up promotion of new waterproofing products and gradually increased the revenue share of high-value-added items to alleviate cost pressure from persistently high asphalt prices. These measures were reflected in the first-half 2026 financial data, and the margin improvement aligns with the company's established operational arrangements.
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