Conch Material Technology reported interim results for the six months ended 30 June 2026. Revenue increased to RMB 1.21 billion, an 11.65% year-on-year gain, driven mainly by stronger sales of concrete admixtures and the launch of new fine-chemical products.
Profitability weakened. Profit before tax declined 22.15% to RMB 57.13 million, while net profit attributable to shareholders fell 23.23% to RMB 40.20 million. Basic EPS dropped to RMB 0.07 from RMB 0.09. The board will not pay an interim dividend.
Gross profit slipped 5.57% to RMB 200.88 million; gross margin fell to 16.64% from 19.67%. Management cited elevated raw-material costs tied to higher oil prices and intensified competition in traditional admixture markets.
Segment performance • Concrete admixture & intermediaries revenue rose 16.82% to RMB 616.50 million, becoming the largest contributor at 51.07% of group sales. • Cement admixture & intermediaries revenue declined 2.08% to RMB 539.41 million, accounting for 44.68% of sales. • “Other” products, mainly new fine chemicals such as surfactants, polyether polyols and ethylene carbonate, generated RMB 51.33 million, up 1,788.51% and representing 4.25% of sales.
Geographically, mainland China contributed RMB 1.18 billion of revenue; overseas markets delivered RMB 28.96 million, more than double the prior-year period.
Cash flow and balance sheet • Operating cash inflow improved to RMB 122.89 million (H1 2025: RMB 79.18 million) on tighter receivables management. • Cash and cash equivalents stood at RMB 343.15 million. • Total loans and borrowings decreased to RMB 938.99 million; 72.03% are due within one year. • Total assets were RMB 2.86 billion, with a 48.34% gearing ratio, down 0.71 percentage points from year-end 2025.
Capital allocation During the period, the company redirected unspent IPO proceeds to a new production complex in Maoming, Guangdong, raising its allocation for that project to HK$ 143.80 million. As of 30 June 2026, 34.84% of total IPO proceeds had been deployed.
Outlook Management plans to “stabilise the domestic base, deepen overseas growth, strengthen technology-driven development and diversify into multiple arenas,” emphasising fine-chemical expansion to build a second growth curve while maintaining its core admixture franchise. No further guidance was provided.