Anhui Wanwei Updated High-tech Material Industry Co Ltd

Wanwei High-tech released its 2026 half-year financial report, achieving operating revenue of 4.236 billion yuan, up 4.32% year-on-year; net profit attributable to the parent of 313 million yuan, up 22.43% year-on-year; and non-GAAP net profit of 304 million yuan, up 24.37% year-on-year. Net cash flow from operating activities was 498 million yuan, a sharp year-on-year increase of 139.22%; research and development spending was 228 million yuan, up 16.86% year-on-year. The chemical industry segment achieved revenue of 2.547 billion yuan, accounting for 63% of main business revenue, with polyvinyl alcohol sales volume growth as the main driver; the new materials segment achieved revenue of 1.129 billion yuan, with its share rising to 29.7%. The company's overall gross margin rose to 17.86%, up 1.68 percentage points from the same period last year. In terms of new capacity construction, new production lines such as the wide-width PVA optical film for TFT polarizers with an annual capacity of 20 million square meters and the automotive-grade PVB film with an annual capacity of 20,000 tons are in the equipment commissioning and trial production stage; the second-phase expansion and upgrade of the functional PVA resin plant with an annual capacity of 5,000 tons and the 15.8-megawatt distributed photovoltaic power generation project have been completed and put into production. On the capital operations front, the company plans to transfer the cement production capacity and supporting assets of its headquarters and Mengwei Technology to a subsidiary of Conch Cement for 619 million yuan, and to invest in a 20-megawatt, 80-megawatt-hour user-side energy storage system project with a total investment of 86.819 million yuan. The company will not distribute profits or convert capital reserves into share capital for the first half of 2026.

Wanwei High-tech released its 2026 interim report, with net profit attributable to the parent company at 313 million yuan, an increase of 57.39 million yuan compared with the same period last year, up 22.43% year-on-year, achieving growth for two consecutive years. The company's total operating revenue was 4.236 billion yuan, up 4.32% year-on-year; net cash inflow from operating activities was 498 million yuan, up 139.22% year-on-year. The latest asset-liability ratio was 41.19%, down 4.01 percentage points from the same period last year; gross margin was 17.88%, up 3.39 percentage points year-on-year; diluted earnings per share was 0.15 yuan, up 23.77% year-on-year.

Wanwei High-tech announced that it plans to invest in the construction of a project with an annual output of 100,000 tonnes of VAE emulsion and 50,000 tonnes of redispersible powder, with a total investment of approximately 576 million yuan. The company stated that the project will help optimize resource allocation, capital structure, and industrial structure, extend the VAC and PVA industry chain, produce high-end new material products, increase product added value and profitability, and have positive significance for the company's future business development.

Wanwei High-tech announced that its wholly-owned subsidiary Mengwei Technology plans to implement a Phase II synthesis reactor technical renovation project, addressing cracking and corrosion leakage issues through material upgrades. The project has a total investment of 32 million yuan, of which construction investment is 31.9 million yuan. Upon completion and reaching full production standards, the project will effectively reduce shutdown losses of the synthesis unit, save material consumption, and extend the service life of the equipment.

Wanwei High-Tech announced plans to issue shares to its controlling shareholder Wanwei Group, raising up to 2.3 billion yuan. The proceeds will be used for a 200,000-ton-per-year ethylene-based functional polyvinyl alcohol resin project and a project producing 30 million square meters per year of polyvinyl alcohol optical film for high-generation panels.

Wanwei High-Tech has disclosed a series of senior management changes. General Manager and Chief Financial Officer Sun Xianwu has resigned due to a change in work arrangements. His original term was set to run until January 15, 2027. After stepping down, he will continue to serve as a non-independent director and in other roles. The company has appointed Xiang Xueyi as the new General Manager and Tao Yong as Executive Deputy General Manager. Meanwhile, the board of directors has elected Zhu Shengli as Chairman of the ninth board, with a term lasting until January 15, 2027. Previously, Chairman Wu Fusheng resigned upon reaching retirement age, and Director Yuan Dabing resigned due to a work transfer. The company expects its net profit attributable to the parent company for the first half of 2026 to be between 300 million and 330 million yuan, representing a year-on-year increase of 17.23 percent to 28.95 percent.

Wanwei High-Tech has issued an earnings forecast, estimating net profit attributable to shareholders of the listed company for the first half of 2026 at between 300 million yuan and 330 million yuan, representing a year-on-year increase of 17.23% to 28.95%. The company said downstream markets are gradually recovering, customer demand is improving, and sales volumes of main products such as vinyl acetate, redispersible polymer powder, PVB resin, and PVB film have grown year-on-year. Export business continues to improve, with vinyl acetate export volume up more than 400% year-on-year, redispersible polymer powder export volume up about 30%, and VAE emulsion export volume also achieving substantial growth. The company estimates non-recurring gains and losses attributable to shareholders of the listed company at approximately 12 million yuan, which will have no significant impact on performance. Based on this calculation, net profit for the second quarter is expected to increase by 20% to 42% quarter-on-quarter.