Zhongfu Shenying H1 2026 Net Profit Surges 488%

Zhongfu Shenying released its 2026 interim report, showing revenue of RMB 1.163 billion for the first half, up 26.14% year on year, and net profit of RMB 70.16 million, up 488.12%. The company attributed the revenue growth to stronger market demand and expansion of downstream applications, which drove both volume and price higher. Net profit benefited from higher volumes and prices, an improved product mix, and cost control. On a quarterly basis, second-quarter net profit was RMB 40 million, up 30% from RMB 30 million in the first quarter.

During the reporting period, net cash generated from operating activities was RMB 260 million, up 247.85% year on year, mainly due to faster cash collection and a VAT input tax refund. Gross margin reached 21.98%, up 6.67 percentage points from 15.31% in the same period of 2025.

The company's main raw materials for carbon fiber production include acrylonitrile and natural gas. Acrylonitrile, a petroleum derivative, is priced in line with international oil. As of late August, the ex-factory spot price of acrylonitrile was about RMB 12,000 per tonne, a record high since 2025 and up more than 50% from the low of RMB 7,800 per tonne at the end of 2025.

Zhongfu Shenying focuses on the research, development, production, and sales of carbon fiber and its composites, with products spanning multiple series and models used in aerospace, wind power, photovoltaics, and consumer electronics. In the first half of 2026, the company's market share exceeded 75% in the hydrogen energy sector, surpassed 45% in both high-end sports and carbon/carbon-ceramic fields, and approached 20% in wind power. Sales in emerging sectors such as consumer electronics and medical devices grew sharply year on year.

On the evening of August 26, the company announced that, in line with the principle of prudence, it would book total impairment provisions of RMB 15.65 million for the first half of 2026. By the close of trading that day, the company's share price stood at RMB 38.31, giving a market capitalisation of RMB 34.48 billion.