Core Viewpoint - Yonghe Co., Ltd. reported strong performance in the first half of 2025, with significant growth in multiple key financial metrics [1] Financial Performance - The company achieved operating revenue of 2.445 billion yuan, a year-on-year increase of 12.39% [1] - Average gross margin improved to 25.29%, up 7.36 percentage points from the same period last year [1] - Net profit attributable to shareholders reached 271 million yuan, a substantial year-on-year growth of 140.82% [1] - Deducting non-recurring gains, the net profit attributable to shareholders was 268 million yuan, with a higher growth rate of 152.25% [1] - Basic earnings per share were 0.67 yuan, an increase of 123.33% year-on-year [1] - Net cash flow from operating activities surged by 209.39% to 337 million yuan [1] Business Segments - The fluorocarbon chemical business was the main driver of revenue growth, generating 1.31 billion yuan in revenue, a year-on-year increase of 26.02% [2] - The gross margin for this segment rose to 32.43%, up 12.15 percentage points from the previous year [2] - The fluoropolymer materials business also performed well, with revenue of 799 million yuan and a gross margin increase of 2.73 percentage points to 19.75% [2] - The company has a total annual production capacity of 82,800 tons for fluoropolymer materials and monomers, with HFP capacity ranking among the top globally [2] Industry Position and Resources - Yonghe Co., Ltd. is one of the most complete enterprises in the fluorochemical industry chain, covering everything from fluorite resource reserves to the production of fine chemicals [2] - The company holds three fluorite mining rights and two exploration rights, with proven fluorite reserves of 4.8527 million tons [2] - Current production capacities include 135,000 tons of anhydrous hydrofluoric acid and 190,000 tons of fluorocarbon chemicals [2] Research and Development - Research and development expenses for the first half of the year reached 51.44 million yuan, a year-on-year increase of 3.58% [3] - The company is focusing on the development of fourth-generation environmentally friendly refrigerants and optimizing the dielectric performance of upgraded products [3] - New products in the fine chemical field, such as perfluorohexanone fire extinguishing agents, are being successfully promoted in the market [3] Future Outlook - The implementation of the Kigali Amendment and deepening management of HFCs quotas are expected to strengthen supply-side constraints in the refrigerant industry [3] - National policies promoting large-scale equipment updates and trade-in programs are anticipated to create new demand growth points for refrigerants [3] - The company aims to leverage its integrated industry chain and quota resource advantages to enhance product structure and profitability, striving for continued growth in annual performance [3]