Ganzhou Tengyuan Cobalt New Material Co. Ltd.

Tengyuan Cobalt has released its 2026 interim report, with net profit attributable to the parent company of 881 million yuan, up 87.82% from the same period last year. Total operating revenue was 6.089 billion yuan, up 72.36% year-on-year, marking a third consecutive year of growth. Net cash flow from operating activities was negative 205 million yuan, down 149.62% year-on-year. The company's latest gross margin was 25.82%, latest return on equity was 8.88%, and diluted earnings per share was 2.30 yuan.

On the evening of August 20, multiple listed companies on the Shanghai and Shenzhen stock exchanges released important positive announcements. Tengyuan Cobalt plans to invest 18 million US dollars in the Democratic Republic of the Congo to build an annual production capacity of 160,000 tonnes of sulphuric acid from sulphur and a supporting power generation project. Zhaochi Holdings plans to invest up to 38.33 million US dollars to build a production base in Mexico. Han's CNC plans to invest up to 180 million US dollars in Malaysia to build a PCB special equipment project, and disclosed first-half net profit of 957 million yuan, up 263.45 percent year on year. Shanghai Sinyang adjusted the production capacity layout of its Shanghai Chemical Industry Park construction project and increased investment, with the project's estimated total investment adjusted from 580 million yuan to 1.05 billion yuan. Tuojing Technology's first-half net profit rose 1,324.1 percent year on year, and it plans to pay a cash dividend of 3.5 yuan per 10 shares. Han's Laser's first-half net profit was 1.288 billion yuan, up 163.84 percent year on year, and it plans to increase the investment limit for its Southeast Asia overseas operations centre project to 265 million US dollars. Ping An Insurance's first-half net profit attributable to the parent company was 92.585 billion yuan, up 36.1 percent year on year. Xinhua Department Store's first-half net profit fell 20.25 percent year on year, and it plans to buy back shares worth 200 million to 400 million yuan. A subsidiary of Wuhan Tianyuan Holdings plans to invest 404 million yuan to build an energy storage project.

Tengyuan Cobalt announced plans to invest in the construction of a project in the Democratic Republic of the Congo with an annual capacity of 160,000 tonnes of sulphuric acid, supporting 5,000 tonnes of sulphur dioxide and a 5.3 megawatt steam turbine power generation unit. The investment amount is 18 million US dollars, equivalent to approximately 121 million yuan. The project is located within the plant area of its controlling subsidiary Hechuang New Energy. The listed company will invest 10.8 million US dollars, while partner SAWA will invest 7.2 million US dollars, contributing capital according to the existing equity ratio of 6 to 4, without changing the shareholding structure. After completion, the project can produce 160,000 tonnes of sulphuric acid and 5,000 tonnes of sulphur dioxide annually, with steam turbine power generation of 5.3 megawatts. The construction period is about 13 months, with acid production expected in August 2027 and power generation in October 2027. The company said the move aims to address cost pressures from geopolitical factors and rising prices of bulk auxiliary materials, achieve partial or full self-supply of key auxiliary materials such as sulphuric acid and sulphur dioxide, and improve electricity self-sufficiency through waste heat power generation. The 2026 semi-annual report disclosed on the same day showed that the company achieved operating revenue of 6.089 billion yuan in the first half of the year, up 72.36 percent year on year, and net profit attributable to the parent company of 881 million yuan, up 87.82 percent year on year.

The Democratic Republic of the Congo has issued an administrative order banning the export of copper and cobalt concentrates, triggering a sharp rally in cobalt mining stocks. Huayou Cobalt responded that its products in the DRC are crude cobalt hydroxide and electrowon copper, and it does not export concentrates, adding that the situation is similar for other Chinese companies. Tianfeng Securities noted that in the short term, cobalt raw material supply is tight but not scarce, and cobalt prices are fluctuating with a weak bias. CITIC Securities believes the ban has limited impact on Chinese copper companies, but could intensify concerns over copper supply tightness and push LME copper prices to accelerate toward fifteen thousand dollars per tonne and above.