Tongkun Group H1 2026 Revenue RMB 52.71 Billion, Net Profit Up 285.03%

Tongkun Group disclosed its semi-annual report for 2026 on August 25. In the first half, the company achieved operating revenue of RMB 52.709 billion, up 19.36% year on year; net profit attributable to shareholders of the listed company was RMB 4.222 billion, up 285.03% year on year; net profit excluding non-recurring items was RMB 4.006 billion, up 280.03% year on year; basic earnings per share were RMB 1.78. In the same period of 2025, the company's net profit attributable to shareholders was RMB 1.097 billion. Operating costs in the first half were RMB 47.417 billion, up 15.16% year on year, with growth lower than that of operating revenue. The company stated that the increase in operating revenue was mainly due to higher per-ton product selling prices.

During the reporting period, the profitability of major products such as polyester filament yarn and PTA improved significantly. Polyester POY and FDY saw notable profit gains, while DTY profitability was under slight pressure. With supply constraints on PX and improved industry supply-demand dynamics, PTA processing fees recovered markedly, with the June PTA processing fee exceeding RMB 700 per ton, a new high since 2023. The industry's supply-demand relationship continued to optimize, with destocking and capacity self-discipline adjustments showing results. Combined with resilient growth in downstream textile, apparel, and home textile demand, industry prosperity rose steadily.

The performance recovery of associate company Zhejiang Petroleum and Chemical Co. , Ltd. (ZPC) provided support. Tongkun holds a 20% stake in ZPC. In the first half, investment income from associates and joint ventures was RMB 1.676 billion, compared with RMB 424 million in the same period of 2025. During the reporting period, ZPC achieved operating revenue of RMB 93.521 billion and net profit of RMB 8.275 billion, versus a net profit of RMB 2.132 billion in the same period of 2025. ZPC's industry improved compared with the same period of 2025, with continued product line expansion and improved profitability for some products.

In terms of cash flow, net cash flow from operating activities in the first half was RMB -718 million, compared with RMB -300 million in the same period of 2025, mainly due to an increase in cash paid for purchasing goods and receiving services. As of the end of June, the company's inventory stood at RMB 15.661 billion, up 44.72% from the beginning of the year; contract liabilities were RMB 2.458 billion, down 40.21% from the beginning of the year. On investment, payments for construction of fixed assets, intangible assets, and other long-term assets in the first half were RMB 2.975 billion, down 58.12% year on year, compared with RMB 7.106 billion in the same period of 2025.