Hongcheng Environmental Technology (02265) announced interim results. Shareholders should account for profit of 709.44 million yuan, an increase of 94.9% over the previous year

Zhitongcaijing · 1d ago

According to the Zhitong Finance App, Hongcheng Environmental Technology (02265) announced 2026 interim results, with revenue of 187.5 million yuan, an increase of 40.4%; profit attributable to company owners was 709.44 million yuan, an increase of 94.9% year on year; basic profit per share was 0.071 yuan.

The sharp increase in revenue is mainly due to: (i) the increase in the average selling price of the Group's main products (i.e. sulfuric acid) during the reporting period, which greatly increased the Group's overall revenue and profitability; (ii) the Group began producing and selling new downstream sulfuric acid products (i.e. sulfuric acid and magnesium fertilizer) in the fourth quarter of 2025, bringing additional revenue during the reporting period. The Group's gross margin increased from approximately 59.2% for the six months ended June 30, 2025 to approximately 68.1% during the reporting period.