Jiangsu Yangnong Chemical Co., Ltd. (600486)

Equity Research Report | Industry: Agrochemicals (Agrochemical Products) | Report Date: September 13, 2026 | Market snapshot data cutoff is the close of 2026-09-11; the research notes do not provide finer-grained timestamps for each metric within that snapshot

This report is automatically compiled and generated by AI based on public information and is for reference only. It does not constitute investment advice.

1. Core Summary

Yangnong Chemical (600486.SH) is the world's largest supplier of pyrethroid technical material and the global leader in dicamba, with Syngenta Group as its controlling shareholder (holding approximately 36.06%) and the State-owned Assets Supervision and Administration Commission of the State Council / Sinochem Holdings as the ultimate controller. It is the only fully integrated enterprise in China that starts from basic chemical raw materials, synthesizes intermediates, and produces pyrethroid technical material. In the first half of 2026, it achieved operating revenue of RMB 6.606 billion (YoY +5.97%), net profit attributable to parent of RMB 790 million (YoY -1.99%), and non-GAAP net profit attributable to parent of RMB 788 million (YoY -1.05%), showing a characteristic of revenue growth without profit growth; of which 2026Q2 single-quarter net profit attributable to parent was RMB 383 million (YoY +3.20%), non-GAAP YoY +5.16%, and gross margin of 24.36% showed a slight sequential recovery.

The main reasons for the pressure on 2026H1 results are threefold: RMB appreciation led to a net exchange loss of RMB 52.1215 million (compared to an exchange gain of RMB 3.7254 million in the same period last year), with financial expenses turning from -RMB 37.2026 million to +RMB 21.2687 million; technical material prices at low levels combined with geopolitical conflicts pushed up raw material and freight costs, with gross margin declining 0.62pct YoY to 23.01%; R&D expenses increased 13.16% YoY. Net cash flow from operating activities was RMB 1.439 billion (YoY -16.69%), with an interim dividend of RMB 2.40 per 10 shares (totaling approximately RMB 97 million, accounting for 12.28% of H1 net profit attributable to parent), continuing dividend returns but with a payout ratio lower than the 30.07% for full-year 2025.

In terms of business structure, 2026H1 technical material revenue was RMB 4.084 billion (YoY +11.74%), constituting the main growth driver, with technical material sales volume of 61,521.73 tons (+8.49%) and average price of RMB 66,400/ton (+3.0%); formulation revenue was RMB 1.101 billion (YoY -5.93%), with sales volume of 24,147.34 tons (-14.09%) but average price up 9.49% YoY; trading revenue was RMB 1.274 billion (YoY -1.05%). Subsidiary Liaoning Youchuang (Huludao base) had 1H26 revenue of RMB 929 million (+68.3%) and net profit of RMB 62 million (approximately RMB 390,000 in the same period last year), showing significant volume ramp-up; Jiangsu Youjia 1H26 net profit was RMB 430 million, remaining the core profit source.

Regarding valuation, as of the 2026-09-11 close of RMB 54.43 (-4.64% on the day), total market capitalization was RMB 21.996 billion, static PE 17.10x, TTM PE 17.32x, PB 1.84x, and net assets per share RMB 29.5962. Based on the latest institutional 2026E EPS of RMB 3.74—4.33 after the interim report, the corresponding forward PE is approximately 12.6—14.6x, lower than the current static valuation; however, it should be noted that the 2026E earnings forecast center has been revised down from RMB 1.6—1.75 billion in April to approximately RMB 1.55—1.60 billion (Open Source Securities lowered from RMB 1.754 billion to RMB 1.510 billion), and the latest target prices in August—September are only RMB 62.64—72.90, showing a significant timeliness gap with the average target price of RMB 83.38 shown on Baidu Stock (including old values from April—May).

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Technical material: R&D, production and sales of pesticide technical material, covering insecticides, herbicides, fungicides, plant growth regulators, with nearly 70 technical material varieties in production, total capacity exceeding 100,000 tons; 2025 technical material revenue RMB 7.315 billion, accounting for 61.63% of revenue, gross margin 26.46%
• Formulations: Branded formulation sales, targeting domestic terminal channels and users; 2025 formulation revenue RMB 1.498 billion, accounting for 12.62% of revenue, gross margin 29.66%
• Trading: 2025 trading revenue RMB 2.848 billion, accounting for 23.99% of revenue, gross margin 7.27%
• Product lines: Insecticides mainly pyrethroid series (public health use + field use); herbicides mainly glyphosate, dicamba, clethodim; fungicides mainly fluazinam, pyraclostrobin; plant growth regulators include trinexapac-ethyl

2.3 Industry Chain Upstream/Downstream Position and Cost-Profit Structure

Yangnong Chemical is positioned in the upstream technical material manufacturing/integration segment of the pesticide industry chain. It is one of the world's largest pyrethroid technical material suppliers, the global leader in dicamba, and the only fully integrated enterprise in China that starts from basic chemical raw materials, synthesizes intermediates, and produces pyrethroid technical material. The company's main raw materials are standardized bulk chemicals, and it is generally a price-taker; downstream it connects with formulation enterprises and multinational agrochemical giants, and its controlling shareholder Syngenta Group is simultaneously its largest customer, creating relatively high related-party sales dependence.

• Actual raw materials procured are bulk basic chemicals/inorganic chemicals, specific varieties and 2024-2025 average procurement prices: methanol approximately RMB 2,324-2,436/ton, toluene approximately RMB 5,406-6,367/ton, liquid caustic soda approximately RMB 2,408-2,740/ton, nitric acid approximately RMB 1,283-1,542/ton, hydrochloric acid approximately RMB 139-143/ton, isoprene approximately RMB 8,899-10,100/ton, thionyl chloride approximately RMB 1,342-1,383/ton, hydrobromic acid approximately RMB 10,000-12,600/ton, methyl chloride approximately RMB 1,927-2,255/ton, formaldehyde approximately RMB 1,081-1,095/ton, potassium carbonate approximately RMB 5,868-6,121/ton, hydrazine hydrate approximately RMB 14,100-15,100/ton, acetic acid approximately RMB 2,501-2,954/ton, liquid potassium approximately RMB 2,714-2,875/ton
• Supply concentration: Tonghuashun F10 shows that in a certain disclosure period "the top 5 suppliers purchased a total of RMB 613 million, accounting for 31.15% of total procurement" (single source, disclosure year unclear, unable to cross-verify, specific data subject to the latest annual report)
• Bargaining power assessment: The company's main raw materials are standardized bulk chemicals, and it is generally a price-taker, with costs fluctuating with basic chemical prices; the 2025 annual report summary states that the procurement department "continuously optimizes supplier structure, optimizes procurement strategy, strengthens transportation cost management, and leverages centralized procurement economies of scale," suggesting that bargaining power is primarily based on large-scale centralized procurement rather than dependence on a few suppliers
• Cost fluctuation moat: Key intermediates (ether aldehyde, permethrin acid methyl ester,功夫acid, etc.) are self-produced, with industry chain integration, mastering self-production capabilities for key pyrethroid intermediates such as ether aldehyde, permethrin acid methyl ester (approximately 5,000 tons capacity), and功夫acid, "pyrethroid product key intermediates are all self-contained and well-supported"; in 2025, through process/equipment improvements, achieved cost reduction of RMB 91.05 million; new facilities at Liaoning Youchuang base have cost competitiveness
• Customer structure: Technical material customers are downstream formulation enterprises (including global agrochemical multinational giants, products exported to over 80 countries and regions); formulation customers are domestic terminal channels and users. The company states it "has formed close cooperation with all major global agrochemical multinational giants" and is "a core global pesticide technical material supplier"; public health use is "the preferred brand for numerous downstream enterprises at home and abroad, with domestic and Southeast Asian market share increasing from less than 5% and maintained at around 70%, making it the world's second-largest public health drug supplier"
• Related party/customer concentration: Controlling shareholder Syngenta Group is simultaneously the largest customer. Northeast Securities in-depth report: In 2022, Syngenta purchased RMB 5.87 billion from the company (YoY +37%), accounting for approximately 12% of Syngenta's external technical material procurement (RMB 46.6 billion). Tonghuashun F10 customer data (single source, year labeling unclear, subject to annual report): In one year "top 5 customers sold a total of RMB 3.998 billion, accounting for 34.82% of revenue," of which Syngenta Group RMB 2.918 billion, accounting for 25.42% (reverse calculation corresponds to approximately RMB 11.48 billion revenue, suspected to be 2023 basis); in another year "top 5 customers sold a total of RMB 8.030 billion, accounting for 50.78% of revenue," Syngenta RMB 5.870 billion, accounting for 37.12% (reverse calculation corresponds to approximately RMB 15.81 billion revenue, suspected to be 2022 basis)
• Industry downstream bargaining characteristics: Unlike automotive parts "annual price reductions" or resource products "commodity benchmark prices," the pesticide technical material industry exhibits "long-term agreement orders + multinational customer lock-in," with some multinational customers cooperating through annual long-term agreement orders with relatively locked product prices, objectively reducing spot price fluctuations (Northeast Securities)
• The industry overall is in oversupply, with domestic new capacity + Indian capacity expansion + cross-industry capital entry, and the company as a technical material price-taker remains constrained by technical material price declines over the long cycle (2025-12-28 industry technical material price index 71.44, YoY -2.03%); Syngenta Group as shareholder and largest customer brings both orders/synergies (such as undertaking the China launch of Syngenta's patented product pydiflumetofen) and creates relatively high related-party sales dependence (needs attention)
• Accounts receivable turnover days (MarketScreener 10-year ratio table): 2020 66.68 days → 2021 74.05 days → 2022 72.79 days → 2023 107.32 days → 2024 121.41 days (increasing year by year, slower collections, consistent with industry downturn and downstream pressure); accounts payable turnover days: 2020 129.04 days → 2021 115.96 days → 2022 100.96 days → 2023 160.39 days → 2024 198.00 days (significantly enhanced ability to hold upstream funds); cash conversion cycle (CCC): 2023 25.23 days → 2024 -15.23 days (turned negative), indicating the company overall between upstream and downstream "occupies upstream, is occupied by downstream," with net working capital burden actually decreasing; cash collection quality: cash received from sales of goods/operating revenue approximately 0.99 over the past five years combined (approximately 95%-110% range), net operating cash flow/net profit approximately 1.25 over the past five years combined, good cash collection quality (Source: zhiliaocaibao financial assessment, based on 2019-2023 data, updated 2024-04-23)
• Customer concentration: Controlling shareholder Syngenta Group is simultaneously the largest customer. Northeast Securities in-depth report: In 2022, Syngenta purchased RMB 5.87 billion from the company (YoY +37%), accounting for approximately 12% of Syngenta's external technical material procurement (RMB 46.6 billion). Tonghuashun F10 customer data (single source, year labeling unclear, unable to cross-verify, subject to annual report): In one year "top 5 customers sold a total of RMB 3.998 billion, accounting for 34.82% of revenue," of which Syngenta Group RMB 2.918 billion, accounting for 25.42% (reverse calculation corresponds to approximately RMB 11.48 billion revenue, suspected to be 2023 basis); in another year "top 5 customers sold a total of RMB 8.030 billion, accounting for 50.78% of revenue," Syngenta RMB 5.870 billion, accounting for 37.12% (reverse calculation corresponds to approximately RMB 15.81 billion revenue, suspected to be 2022 basis). Supplier concentration: Tonghuashun F10 shows that in a certain disclosure period "the top 5 suppliers purchased a total of RMB 613 million, accounting for 31.15% of total procurement" (single source, disclosure year unclear, unable to cross-verify, specific data subject to the latest annual report).

The company is positioned at the "upstream technical material manufacturing/integration" end of the smile curve—it is the world's largest pyrethroid technical material supplier, global dicamba leader, and pyrethroid full-industry-chain integrated enterprise, relying on process R&D + key intermediate self-supply + large-scale centralized procurement + long-term agreement customers to achieve technical material gross margins above peers (technical material gross margin approximately 26-28%, significantly higher than trading business 7-8%, and also higher than most peers), but overall still belongs to "chemical manufacturing type" rather than brand/resource-type high margin, with net margin only approximately 10-14%. Future gross margin improvement is mainly driven by: (a) pricing recovery from bottoming and rebound of core varieties such as pyrethroids/glyphosate; (b) high value-added product structure upgrade from Youchuang base new capacity (especially Syngenta's patented fungicide pydiflumetofen); (c) process cost reduction and deepening of intermediate self-supply. Constraining factors are long-term price suppression from industry overcapacity and related-party sales dependence on shareholder and major customer Syngenta.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest financial report is the 2026 interim report (disclosed 2026-08-24/25), and the previous full year is the 2025 annual report (disclosed 2026-03-30, KPMG Huazhen standard unqualified opinion). 2026Q1 data (revenue approximately RMB 3.467 billion, net profit attributable to parent approximately RMB 407 million) is reverse-calculated from H1 and Q2 data, not officially disclosed. 2026Q2 sequential data: revenue -9.47% QoQ, net profit attributable to parent -5.95% QoQ, non-GAAP RMB 384 million (YoY +5.16%), Q2 gross margin 24.36%, net margin 12.2% (slight sequential recovery). 2026H1 other indicators: total profit RMB 954 million (company basis flat with same period last year, approximately -0.2%), non-GAAP net profit attributable to parent RMB 788 million (-1.05%), basic earnings per share RMB 1.955 (-2.06%), sales gross margin 23.01% (-0.62pct), sales net margin 11.96% (-0.97pct), weighted average ROE 6.69% (-0.69pct), net cash flow from operating activities RMB 1.439 billion (-16.69%), interim dividend RMB 2.40 per 10 shares (tax inclusive) totaling RMB 97 million (accounting for 12.28% of H1 net profit attributable to parent). Three main reasons for 2026H1 revenue growth without profit growth: RMB appreciation led to net exchange loss of RMB 52.1215 million (exchange gain of RMB 3.7254 million in same period last year), financial expenses turning from -RMB 37.2026 million to +RMB 21.2687 million; technical material prices at low levels combined with geopolitical conflicts pushing up raw material/freight costs, gross margin decline; R&D expenses +13.16% YoY. Balance sheet: accounts receivable RMB 3.474 billion (+21.98% from beginning of year), inventory RMB 1.224 billion (+19.12% from beginning of year), monetary funds RMB 1.155 billion, short-term borrowings reduced to RMB 200 million (-78.02% from beginning of year). Business breakdown (H1): technical material revenue RMB 4.084 billion (+11.7%), formulations RMB 1.101 billion (-5.9%), trading RMB 1.274 billion; domestic RMB 3.918 billion/overseas RMB 2.688 billion; subsidiary Liaoning Youchuang net profit RMB 62 million, Jiangsu Youjia net profit RMB 430 million. 2025 other indicators: non-GAAP net profit attributable to parent RMB 1.272 billion (+9.39%), basic earnings per share RMB 3.188, gross margin 21.99% (-1.12pct), net margin 10.84% (-0.69pct), weighted ROE 11.69%, asset-liability ratio 36.91%, net operating cash flow RMB 2.217 billion (+2.85%), dividend RMB 7.14 per 10 shares (including interim RMB 0.24), full-year dividend RMB 387 million (accounting for 30.07% of net profit attributable to parent). 2025 volume-price breakdown: technical material sales volume 113,500 tons (+13.62%), average price RMB 64,500/ton (+0.31%), revenue RMB 7.315 billion (+13.97%); formulation sales volume 36,800 tons (+1.30%), average price RMB 40,700/ton (-4.34%), revenue RMB 1.498 billion (-3.09%); trading revenue RMB 2.848 billion (+23.53%); domestic RMB 4.854 billion (+11.55%), overseas RMB 6.808 billion (+15.02%). 2025 subsidiaries: Jiangsu Youjia revenue RMB 5.139 billion/net profit RMB 787 million, Sinochem Crops revenue RMB 2.504 billion (-32.52%)/net profit RMB 147 million (-35.23%), Jiangsu Youshi revenue RMB 1.527 billion/net profit RMB 148 million, Liaoning Youchuang revenue RMB 1.416 billion/net profit approximately RMB 61 million. Data verification note: Lanjinger Finance once mistakenly wrote 2025 net profit attributable to parent as RMB 912 million; after cross-verification by Cailianshe, China Securities Network, East Money, Sina Finance, and brokerage research reports, the correct value is RMB 1.286 billion; Lanjinger made a clerical error and is not adopted. 2026Q1 gross margin 21.79% (-2.85pct) is only from a single research report by Dongxing Securities.

The company achieved operating revenue of RMB 11.870 billion (+13.76%) and net profit attributable to parent of RMB 1.286 billion (+6.98%) in 2025, reversing the dual decline in revenue and profit in 2024, with volume-price performance diverging between technical material and formulation businesses, with technical material volume growth and stable prices driving revenue growth, and formulation volume decline with price increase. 2026H1 revenue of RMB 6.606 billion (+5.97%) continued growth, but net profit attributable to parent of RMB 790 million (-1.99%), showing revenue growth without profit growth, mainly due to RMB appreciation causing exchange losses (net exchange loss of RMB 52.1215 million, compared to exchange gain of RMB 3.7254 million in same period last year), technical material prices at low levels combined with geopolitical conflicts pushing up raw material and freight costs, R&D expenses +13.16% YoY. 2026Q2 single-quarter net profit attributable to parent RMB 383 million (YoY +3.2%), gross margin and net margin slightly recovered sequentially, non-GAAP YoY +5.16%. Liaoning Youchuang (Huludao) project continued to ramp up, 2025 revenue RMB 1.416 billion/net profit approximately RMB 61 million, 2026H1 net profit RMB 62 million, building a new growth pole. On the balance sheet, accounts receivable and inventory increased 21.98% and 19.12% respectively from the beginning of the year, requiring attention to collection and inventory changes; short-term borrowings decreased significantly by 78.02% to RMB 200 million, with financial structure somewhat optimized. Interim dividend RMB 2.40 per 10 shares, accounting for 12.28% of H1 net profit attributable to parent, continuing dividend returns.

3.2 Earnings Forecasts

Earnings forecasts are single-brokerage views, not exchange/company disclosures. Updated forecasts after the 2026 interim report (late August—early September 2026): Open Source Securities (2026-08-25) 2026E net profit attributable to parent RMB 1.510 billion (lowered by RMB 244 million), 2027E RMB 2.018 billion, 2028E RMB 2.266 billion, 2026E EPS RMB 3.74, Buy rating; Huatai Securities (2026-08-25) Overweight, target RMB 62.64; Orient Securities (2026-08-26) Overweight, target RMB 72.90; Huachuang Securities (2026-08-26) Buy, target RMB 68.94; CICC (2026-09-02) Buy, target RMB 70.00; Changjiang Securities (2026-08-30), Everbright Securities (2026-08-25) were H1 reviews, full-year figures not obtained. Forecasts after the 2025 annual report (April—July 2026): Zhongtai Securities (2026-07-01) 2026E RMB 1.592 billion/2027E RMB 1.840 billion/2028E RMB 2.210 billion; CITIC Securities (2026-06-08) RMB 1.580/1.754/1.871 billion, target RMB 82.00; Changjiang Securities (2026-05-14) RMB 1.474/1.618/1.756 billion; Industrial Securities (2026-05-05) RMB 1.645/1.829/2.031 billion; Shenwan Hongyuan (2026-05-04) RMB 1.635/1.926/2.241 billion; China Merchants Securities (2026-05-02) RMB 1.537/1.858/2.111 billion; Global Fusheng Wealth Management (2026-05-05) RMB 1.657/1.910/2.157 billion, target RMB 89.98; CICC (2026-04-28) RMB 1.615/1.833 billion, target RMB 83.00; Dongxing Securities (2026-04-28) RMB 1.571/1.799/2.007 billion, EPS RMB 3.88/4.44/4.95, Strong Recommend; Huatai Securities (2026-04-27) RMB 1.751/2.133/2.400 billion, target RMB 77.76; Guosen Securities (2026-04-27) RMB 1.519/1.739/1.959 billion; Great Wall Securities (2026-04-22) RMB 1.606/1.914/2.151 billion; Hua'an Securities (2026-04-21) RMB 1.605/1.874/2.149 billion, Buy; Guotai Haitong (2026-04-21) EPS RMB 4.09/4.71/5.32, target RMB 102.25/Overweight; BOC International (2026-04-09) EPS RMB 3.87/4.42/5.03, Buy; Sinolink Securities (2026-04-03) RMB 1.466/1.652/1.853 billion, EPS RMB 3.616/4.077/4.571, Buy; Open Source Securities (2026-04-01) RMB 1.754/2.112/2.326 billion, EPS RMB 4.33/5.21/5.74, Buy. Consensus summary (author's own compilation, not official): 2026E net profit attributable to parent range approximately RMB 1.47—1.75 billion, center approximately RMB 1.55—1.60 billion, with downward revision trend after the interim report (e.g., Open Source RMB 1.754→1.510 billion, magnitude approximately -14%), mainly due to export exchange losses + raw material cost increases; 2027E range approximately RMB 1.62—2.13 billion, 2028E approximately RMB 1.76—2.40 billion, reflecting market expectations for growth from Huludao (Liaoning Youchuang) project ramp-up. Note basis differences: some institutions give target prices, others only give ratings without target prices; target price publication spans a wide range (April to September), cannot be regarded as consensus target prices at the same point in time. The 2026E center of RMB 1.55—1.60 billion is an estimate based on a limited sample, not a complete multi-institution consensus.

3.3 Valuation Level and Institutional Ratings

As of the 2026-09-11 close, the latest closing price was RMB 54.43 (-RMB 2.65, -4.64%), total shares/floating shares both 404 million (fully circulating), total market capitalization/floating market capitalization RMB 21.996 billion, net assets per share RMB 29.5962, PE (static, based on 2025) 17.10x, PE (TTM) 17.32x, PB 1.84x. Self-verification using H1 data: total market capitalization RMB 21.996 billion ÷ TTM net profit attributable to parent (approximately RMB 1.27 billion) ≈ 17.3x, consistent with the page TTM PE, internally logically consistent. Forward valuation (author's estimate, based on each institution's EPS): at RMB 54.43, 2026E EPS RMB 3.74—4.33 corresponds to PE 12.6—14.6x; 2027E EPS RMB 4.99—5.21 corresponds to PE 10.4—10.9x; 2028E EPS RMB 5.03—5.74 corresponds to PE 9.5—10.8x. Accordingly, the valuation corresponding to institutional forecasts updated after the interim report is lower than the historical static PE cited in the report, reflecting the significant decline in share price from early-year highs (2026-02-28 average price RMB 79.79, 2026-03-31 RMB 74.29). Target price summary (Baidu Stock institutional forecast section): average target price RMB 83.38, highest RMB 104.12, lowest RMB 62.64; this average/highest is clearly inflated by early high target prices (Guotai Haitong RMB 102.25, Global Fusheng RMB 89.98, CICC April RMB 83.00, CITIC RMB 82.00), disconnected from the latest August—September target prices (RMB 62.64—72.90), and timeliness should be noted when referencing; single source (Baidu Stock aggregation), further verification with Wind/Tonghuashun recommended. Uncertainties and limitations: current time point is 2026-09-11 (Friday), market data from Cailianshe/Baidu Stock aggregation page, unable to secondarily verify from exchange raw data; average target price contains many old values from April—May, latest target prices only RMB 62.64—72.90, do not directly cite average as current consensus target price; 2026E earnings forecasts from multiple institutions in April (RMB 1.6—1.75 billion) have been partially falsified by August exchange rate and cost shocks, only Open Source gave a clear downward revision to RMB 1.510 billion, other August research reports did not obtain complete full-year figures; the difference between non-GAAP -1.05% and net profit attributable to parent -1.99% stems from non-recurring gains and losses; forecasts are all single-brokerage views, not exchange/company disclosures; any PS/PE calculations are the author's estimates based on public data, not investment advice.

4. Recent News and Announcements

4.1 Yangnong Chemical (600486.SH) Target Confirmation

Company full name Jiangsu Yangnong Chemical Co., Ltd., listed on the Shanghai Stock Exchange Main Board, mainly engaged in pesticides (pyrethroids, etc.), is the world's largest pyrethroid technical material supplier, with nearly 70 technical material varieties in production, glyphosate designed capacity 30,000 tons/year, dicamba 25,000 tons/year. Controlling shareholder Syngenta Group Co., Ltd. holds approximately 36.06%, ultimate controller is Sinochem Holdings Co., Ltd. The cutoff date baseline for this note is approximately September 11—September 12, 2026. This search using the current year-month (August—September 2026), the keyword search for '600486 latest announcement September 2026' returned empty results, indicating no new major announcements disclosed since September, with the most recent batch of announcements concentrated in the late August 2026 interim report window.

4.2 2026 Interim Report Disclosure: Revenue RMB 6.606 Billion, Net Profit Attributable to Parent RMB 790 Million, Proposed RMB 2.4 per 10 Shares

The company released the 2026 interim report on the evening of 2026-08-24 and disclosed on 8-25. First half (1H26) revenue RMB 6.606 billion, YoY +5.97%; net profit attributable to parent RMB 790 million, YoY -1.99%; non-GAAP net profit attributable to parent RMB 788 million, YoY -1.05%; basic EPS RMB 1.955; weighted ROE 6.69% (YoY -0.69pct); net cash flow from operating activities RMB 1.439 billion, YoY -16.69%; total profit RMB 954 million, basically flat with same period last year. Single-quarter Q2 revenue RMB 3.139 billion, YoY +4.87%, QoQ -9.47%; Q2 net profit attributable to parent RMB 383 million, YoY +3.20%, QoQ -5.95%; Q2 non-GAAP RMB 384 million, YoY +5.16%. Main reasons for revenue growth without profit growth: RMB appreciation led to first-half net exchange loss of RMB 52.1215 million (exchange gain of RMB 3.7254 million in same period last year), financial expenses turning from -RMB 37.2026 million to +RMB 21.2687 million; gross margin 23.01%, YoY -0.62pct; R&D expenses +13.16% YoY (first-half R&D expenses RMB 189 million). By business: technical material revenue RMB 4.084 billion (+11.74%), formulations RMB 1.101 billion (-5.93%), trading RMB 1.274 billion (-1.05%); technical material production 64,749 tons (+12.1%), sales volume 61,521.73 tons (+8.49%), average price RMB 66,400/ton (+3.0%); formulation sales volume 24,147.34 tons (-14.09%), average price RMB 45,600/ton (+9.49%). Subsidiaries: Liaoning Youchuang 1H26 revenue RMB 929 million (+68.3%), net profit RMB 62 million (approximately RMB 390,000 in same period last year); Jiangsu Youjia revenue RMB 2.731 billion, net profit RMB 430 million. A total of approximately 8 announcements were disclosed on the same day as the interim report (2026-08-24/25), including the 2026 interim report and summary, interim profit distribution plan, interim major operating data, the 9th Board of Directors 9th meeting resolution, signing of the "Supplementary Agreement II to the Financial Services Framework Agreement" with Sinochem Group Finance Co., Ltd. and related-party transaction, the 2026 "Improving Quality and Efficiency and Rewarding Returns" action plan semi-annual assessment report, and Sinochem Finance Company 2026 semi-annual risk assessment report.

4.3 2026 Interim Profit Distribution Plan: Proposed RMB 2.40 per 10 Shares

2026 interim distribution plan: cash dividend of RMB 2.40 per 10 shares (tax inclusive), totaling approximately RMB 96,986,900, accounting for 12.28% of first-half net profit attributable to parent (this basis comes from Securities Star, some media express it as board proposal). As of 2026-09-11, this interim dividend has not been implemented, with no record date.

4.4 2025 Annual Dividend Implementation: RMB 7.14 per 10 Shares

2025 annual dividend: RMB 7.14 per 10 shares (tax inclusive), record date 2026-06-24, ex-dividend date 2026-06-25, cash dividend approximately RMB 289 million; 2025 full year including interim dividend total cash dividend approximately RMB 386.75 million, accounting for 30.07% of that year's net profit attributable to parent. 2025 interim dividend (prior year interim): RMB 2.4 per 10 shares, registered 2025-09-29, ex-dividend 2025-09-30. Cumulative data: 25 cumulative cash dividends since listing totaling approximately RMB 3.218 billion; dividend yield approximately 1.75%, dividend payout ratio approximately 30%.

4.5 Equity Incentive Restricted Stock Repurchase and Cancellation: Total Cancellation of 1,213,355 Shares, Total Share Capital Reduced to 404,111,938 Shares

Board approved 2026-03-27, announced 2026-03-31 (Lin 2026-008, 009): Due to 3 incentive recipients departing from the 2022 restricted stock incentive plan (17,800 shares) and the third unlock period performance assessment not meeting targets (248 incentive recipients 1,195,555 shares), total repurchase and cancellation of 1,213,355 shares, involving 251 people; repurchase price for initial grant RMB 37.43/share, reserved portion RMB 30.60/share, funds from own funds. Completed cancellation on 2026-05-26, total share capital reduced from 405,325,293 shares to 404,111,938 shares. Previous round: announced 2025-12-29 (Lin 2025-044), 14 incentive recipients due to departure/retirement/performance reasons repurchased and cancelled 73,591 shares, completed 2026-01-05, total share capital reduced from 405,398,884 shares to 405,325,293 shares. Unlock listing: announced 2026-06-26, 2022 restricted stock incentive plan reserved grant first unlock period unlocked, approximately 123,300 shares listed for trading on 2026-07-02. Note: The above repurchases are all equity incentive restricted stock repurchase and cancellation, not market-based share repurchases; investors suggested annual repurchase and cancellation of RMB 50 million—100 million in shares, the company responded at the 2026 interim results briefing that it "highly values investor returns... fully promotes Huludao capacity (release)," did not explicitly commit to a market-based repurchase plan, it is management statement, not commitment.

4.6 Shareholder Count and Top Ten Floating Shareholders Changes (As of 2026-06-30)

Shareholder count: As of 2026-06-30, A-share shareholder count 30,425, compared to 22,124 as of 2026-03-31, an increase of 8,301, or +37.52%, with chips clearly dispersed. Top ten floating shareholders (2026-06-30): Syngenta Group 146 million shares/36.06% (unchanged), Yangzhou Fuyuan Chemical 5.47% (unchanged), National Social Security Fund Portfolio 106 3.87% (reduced 672,800 shares), Hong Kong Central Clearing 3.02% (reduced 2,077,500 shares), Basic Pension Insurance Fund Portfolio 807 1.40% (reduced 191,500 shares), Abu Dhabi Investment Authority 1.09% (reduced 1,227,700 shares), China Chengtong Holdings 0.98% (new entry), China Life Dividend-Individual Dividend Account 0.78% (new entry), Penghua CSI Subdivided Chemicals ETF 0.61% (reduced 1,897,000 shares), Zhongtai Xingyuan Flexible Allocation 0.60% (new entry).

4.7 Block Trades and Margin Trading Dynamics

Block trades: 2026-07-27 average price RMB 54.89, premium 0.00%, volume 306,000 shares, amount RMB 16.8 million. Margin trading (as of 2026-09-04): margin balance RMB 205.2 million, daily margin net buy -RMB 1.623 million; 9-03 balance RMB 206.8 million (net buy -RMB 10.81 million), 9-02 balance RMB 217.6 million (+RMB 1.067 million), 9-01 balance RMB 216.6 million (+RMB 29.68 million). Executive reductions (older, for reference): 2025-06-27 multiple executives concentrated reductions (e.g., Wu Xiaoju -14,000 shares, Jiang Youfa -8,797 shares, Li Changqing -7,973 shares, etc.); 2025-09-18 Liu Hongsheng -100 shares.

4.8 2026 Interim Results and Cash Dividend Briefing Held

On 2026-08-27, the 2026 interim results and cash dividend briefing was held in "video recording + online text interaction" format, with Chairman Su Fu, Director and General Manager Wu Xiaoju, Independent Director Li Zhonghua, Board Secretary and CFO Li Changqing attending. Management stated "innovative compounds in the pipeline continue to increase, with multiple products entering registration stage," striving to launch 1 new product every 1~2 years in the next 5 years; the commercialized innovative drug is flufenzine.

4.9 Operations, Projects and R&D Dynamics: Liaoning Youchuang Capacity Release, Innovative Drug Launch, Patent Grants

Projects: Liaoning Youchuang (Huludao) Phase I Stage 1 capacity release, Stage 2 commissioning has produced qualified products, Phase II project started approval; simultaneously advancing Jiangsu Youshi, Shenyang Kechuang projects. Innovative drugs: New mechanism innovative drug flufenzine launched March 2026; independently innovated product "Weijing" officially launched March 2026. Patents/R&D: 2026-08-05 obtained invention patent authorization "A synthesis method for 4-methylsulfonyltoluene"; 2026-07-22, 07-15 etc. multiple invention patent authorizations; first half obtained 24 domestic and international patent authorizations. ESG: 2026-09-06 obtained Huazheng Index ESG latest rating A, industry ranking 40th (previously 2026-03-15, 06-07 rating A).

4.10 Industry, Policy and Peer News (Related)

Interim report citations: 2025-12-28 industry technical material price index 71.44 points, YoY -2.03%, 72% of tracked products declined YoY; 2025 China chemical pesticide production first exceeded 4 million tons, YoY +12%, industry "oversupply, intensifying involution"; 2026 first half Sinochem Lihua index fell to historical lowest since inception. Pesticide "anti-involution"/capacity concentration improvement policy theme continues. Peer references (not company announcements): Lier Chemical control transaction settled with China Resources Double-Crane, transaction amount RMB 5.656 billion, premium 138% (2026-07-29); Hunan Haili controlling shareholder plans RMB 85 million—170 million increase (2026-07-22). This search found no announcements of Yangnong Chemical itself undergoing M&A restructuring or control changes.

4.11 Data Uncertainty and Usage Notes

1. Interim report release date basis: Most sources indicate release on evening of 2026-08-24, disclosure on 8-25; Securities Star has an article stating "released August 21," which does not match mainstream sources and SSE announcement date (20260825), subject to 2026-08-24/25. 2. Multiple data sources (East Money, Securities Star, Tonghuashun, Chagu.com, Baidu Finance) are third-party aggregations or AI summaries, with some articles marked "AI algorithm generated"; core financial figures (revenue RMB 6.606 billion, net profit attributable to parent RMB 790 million, RMB 2.4 per 10 shares) have been cross-verified consistent by China Securities Network, China Fund News, multiple brokerage research reports and SSE announcement PDF. 3. Interim dividend RMB 96,986,900/12.28% from single media (Securities Star), may have slight differences from company announcement proposal basis, it is board proposal, not yet implemented. 4. "Repurchase" matter is only equity incentive restricted stock repurchase and cancellation, not market-based share repurchase; investor-suggested market-based repurchase has not been committed by the company. 5. Shareholder count +37.52% and executive increase/decrease, block trade data from third-party compilation, some entries older (2025), cutoff date should be noted when using. 6. Cailianshe individual stock page shows market date 2026-09-12, one day difference from Baidu Finance 09-11 close, it is data source time point difference, price information cited as background only.

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

The research notes confirm the target is Jiangsu Yangnong Chemical Co., Ltd. (600486.SH), listed on the Shanghai Stock Exchange Main Board, Shenwan industry classification as "Basic Chemicals—Agrochemical Products—Pesticides," mainly engaged in pesticide technical materials, formulations and trading, belonging to concepts including glyphosate, central enterprise reform, pension holdings, social security heavy holdings, Shanghai Stock Connect, QFII heavy holdings, etc. However, the "market snapshot (as of 2026-09-11 close)" and subsequent technical indicators, capital flow specific values in the research notes are not actually given in the main text, only source links are listed; therefore no price, moving averages, Bollinger Bands, turnover rate, trading volume, shareholder concentration and other specific figures can be filled in this section. The sporadic price information appearing in the research notes (such as price figures in some page titles, individual date capital net buy/net sell amounts) comes from scattered sources with inconsistent bases, and has not been cross-verified with unified closing basis, not suitable for use as technical data in this report. It is recommended to supplement 2026-09-11 closing price, change, volume/turnover, turnover rate, moving averages and Bollinger Band values, recent highs/lows, main capital flows and other verified data before generating complete technical analysis.

5.3 Short-Term Trend Outlook (Next Week, Scenario Deduction, For Reference Only)

⚠️ Risk Warning: The following content is only subjective scenario deduction based on currently available information, does not constitute investment advice, please do not operate based on it.

① Key Technical Levels

② Next Week Scenarios (Subjective Weight, Not Statistical Probability)

• Range-bound consolidation (weight cannot be assessed (subjective judgment, not statistical probability)): In the absence of specific technical level data, corresponding price range and trigger conditions cannot be given. General observation approach: if share price fluctuates on reduced volume near recent moving average clusters and no new catalysts, may maintain range-bound; need to confirm with supplementary data.
• Weaker downside (weight cannot be assessed (subjective judgment, not statistical probability)): In the absence of support level data, downside target range cannot be given. General observation approach: if breaking below recent key support with increased trading volume and sector weakening in tandem, may further decline; need to confirm with supplementary data.
• Rebound strengthening (weight cannot be assessed (subjective judgment, not statistical probability)): In the absence of resistance level data, rebound target range cannot be given. General observation approach: if breaking above recent resistance on volume with industry or company-level positive news, may open upside space; need to confirm with supplementary data.

③ Capital and Liquidity Background

The research notes do not provide turnover rate, trading volume range and other liquidity data as of 2026-09-11, nor do they provide top ten shareholder concentration and whether it includes public funds, social security, QFII and other institutional holders specific information. Although the target's concepts include "social security heavy holdings" "QFII heavy holdings" "Shanghai Stock Connect" and other labels, these are concept/theme descriptions, cannot replace verified shareholder structure data; shareholder data typically has disclosure lag of more than one quarter, actual structure may have changed. Therefore in the absence of the above data, no judgment can be made on bid-ask thickness, slippage level or capital involvement degree, recommend supplementing data before analysis.

The research notes do not provide the stock's recent normal fluctuation range of trading volume or turnover rate, unable to calibrate a verifiable volume confirmation threshold; after supplementing trading volume data, specific volume confirmation signals can be set accordingly.

④ Points of Attention (Observation Approach Only, Not Operational Instructions)

• Pay attention to subsequently supplemented 2026-09-11 closing price and recent moving averages (MA5/10/20), Bollinger upper/lower band values, to clarify short-term resistance and support ranges.
• Pay attention to whether trading volume and turnover rate can continue to expand relative to recent normal levels, as observation signal for capital involvement.
• Pay attention to changes in public funds, social security, QFII and other institutional holders among top ten shareholders (note disclosure lag).
• The above are all observation approaches, not operational instructions, please independently judge combined with latest market information.

The above scenario deduction is based on the research notes framework of 2026-09-11 closing data and historical prices, technical indicator calculations, but the research notes do not provide specific market and indicator values, some conclusions cannot be given due to missing data. Short-term share price will also be disturbed by multiple factors such as news, capital, market environment, technical indicators themselves have lag and limitations, do not constitute guarantee of future actual trends, nor constitute buy/sell advice, please independently judge combined with latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

According to National Bureau of Statistics, 2025 China chemical pesticide production first exceeded 4 million tons, YoY +12%; industry technical material price index 2025-12-28 reported 71.44 points, YoY -2.03%, 72% of over a hundred tracked products declined YoY; industry overall in "thin-profit cycle." Landscape characteristics: total oversupply, capacity concentrating to leaders and compliant large enterprises, regional clusters are Jiangsu (28 listed enterprises leading), Zhejiang, Shandong; central enterprises/state capital accelerating agrochemical layout (Sinochem system integrating ADAMA, Yangnong Chemical; supply and marketing cooperative system Sinochem Lihua integrating distribution channels).

6.2 Competitive Landscape

• Industry total: According to National Bureau of Statistics, 2025 China chemical pesticide production first exceeded 4 million tons, YoY +12%; industry technical material price index 2025-12-28 reported 71.44 points, YoY -2.03%, 72% of over a hundred tracked products declined YoY; industry overall in "thin-profit cycle" (2025 annual report summary)
• Industry ranking (China Pesticide Industry Association 2025 "enterprises with sales over RMB 500 million" list, released 2026-05-20, by pesticide sales): ①ADAMA RMB 26.650 billion; ②Rainbow Agro RMB 14.688 billion; ③Yangnong Chemical RMB 11.661 billion (YoY +13.54%); ④Sinochem Lihua RMB 11.237 billion; ⑤Lianyungang Liben Crop RMB 10.628 billion; ⑥Lier Chemical RMB 8.624 billion; ⑦Fuhua Tongda RMB 8.320 billion; ⑧Wynca RMB 8.066 billion; ⑨Qizhou Green RMB 7.336 billion; ⑩Xingfa Group RMB 5.797 billion. 119 listed enterprises total RMB 301.251 billion (2024 RMB 284.887 billion)
• By A-share listed company 2025 operating revenue ranking (China Business Industry Research Institute, 2026-05-22): ADAMA A RMB 28.945 billion, Rainbow Agro RMB 14.688 billion, Wynca RMB 14.625 billion, Yangnong Chemical, Sinochem Lihua, Lier Chemical, Lianhe Technology, Jiangshan Shares, Yingtai Biological, Taihe Shares in top ten (Yangnong Chemical 4th). Note: This ranking by revenue basis, different from Pesticide Industry Association "pesticide sales" basis, so Yangnong ranking differs (former 4th, latter 3rd)
• Landscape characteristics: total oversupply, capacity concentrating to leaders and compliant large enterprises, regional clusters are Jiangsu (28 listed enterprises leading), Zhejiang, Shandong; central enterprises/state capital accelerating agrochemical layout (Sinochem system integrating ADAMA, Yangnong Chemical; supply and marketing cooperative system Sinochem Lihua integrating distribution channels)
• Pyrethroid sub-sector peers (most direct competition with Yangnong, source: Northeast Securities in-depth report, specific capacity subject to each company's latest disclosure): cyhalothrin—Yangnong 5,500 tons/year, Changqing Shares 2,000 tons/year, Chunjiang Agrochem 1,500 tons/year, Jiangsu Changlong 1,200 tons/year, Gaoxin Runnong and Guangdong Liwei 1,000 tons/year each; bifenthrin—Yangnong 3,800 tons/year, Lianhe Technology 1,500 tons/year, Changqing Shares/Huifeng Shares/Guangdong Liwei 1,000 tons/year each. Yangnong pyrethroid capacity domestic first, global market share (2021 basis) over 10%
• Differentiated moat: Yangnong is the "only enterprise from basic chemical raw materials → synthesize intermediates → produce pyrethroid technical material" integrated enterprise (Cailianshe related reason), leading peers in process R&D, safety and environmental protection, large-tonnage product tree, key intermediate support, large-scale centralized procurement and transportation; also backed by Syngenta/Sinochem system

6.3 Main Competitors

Yangnong Chemical in comparable companies is positioned as "technical material integration + key intermediate self-supply" type enterprise, forming smile curve two-end contrast with ADAMA (formulations + global channels), Rainbow Agro (overseas registration + export channels); partially overlapping with Lier Chemical (glufosinate), Wynca (glyphosate + organosilicon), Jiangshan Shares (glyphosate) in herbicide varieties; comparable with Lianhe Technology in key intermediate/CDMO segment. Yangnong's core differentiation: (1) the only fully integrated enterprise in China starting from basic chemical raw materials, synthesizing intermediates and producing pyrethroid technical material; (2) pyrethroid capacity domestic first, global dicamba leader (capacity 20,000 tons/year, accounting for approximately 34% globally); (3) key intermediates (ether aldehyde, permethrin acid methyl ester,功夫acid) self-produced, reducing dependence on high-priced externally purchased intermediates; (4) backed by Syngenta/Sinochem system, undertaking its patented product (pydiflumetofen) China launch. But compared with ADAMA, Rainbow Agro, downstream brand/channel layout weaker, technical material price-taker attribute makes its profit pressure more obvious in industry oversupply cycle; compared with Lianhe Technology, intermediate CDMO business scale limited.

7. Risk Warnings

• Exchange loss risk: 2026H1 due to RMB appreciation produced net exchange loss of RMB 52.1215 million (exchange gain of RMB 3.7254 million in same period last year), financial expenses turning from -RMB 37.2026 million to +RMB 21.2687 million, company overseas revenue proportion high (2026H1 overseas RMB 2.688 billion, 2025 overseas RMB 6.808 billion, YoY +15.02%), if RMB continues to appreciate, exchange gains/losses negative drag on profit may continue or even expand.
• Related-party sales dependence risk: Controlling shareholder Syngenta Group is simultaneously the largest customer, Northeast Securities report shows 2022 Syngenta purchased RMB 5.87 billion from company, approximately 12% of Syngenta's external technical material procurement, Tonghuashun F10 data shows in a certain year top five customer sales proportion once reached 50.78%, of which Syngenta accounted for 37.12%, and the company's 2026 interim report window simultaneously disclosed signing of "Supplementary Agreement II to the Financial Services Framework Agreement" with Sinochem Group Finance Co., Ltd. and related-party transaction, related-party transaction pricing fairness and order sustainability need continuous attention.
• Industry oversupply and price decline risk: 2025 China chemical pesticide production first exceeded 4 million tons (YoY +12%), technical material price index 2025-12-28 reported 71.44 points (YoY -2.03%), 72% tracked products declined YoY, 2026 first half Sinochem Lihua index fell to historical lowest since inception; domestic new capacity release, Indian capacity expansion, cross-industry capital entry, company as technical material price-taker, 2024, 2025 gross margin already continuously declined to 23.11%, 21.99%, thin-profit cycle may extend.
• Working capital risk from accounts receivable and inventory increases: 2026H1 accounts receivable RMB 3.474 billion (+21.98% from beginning of year), inventory RMB 1.224 billion (+19.12% from beginning of year), while monetary funds only RMB 1.155 billion; accounts receivable turnover days already rose from 66.68 days in 2020 to 121.41 days in 2024, if downstream formulation enterprises and farmer end payment ability continues to deteriorate, may bring bad debt provisions and cash flow pressure, 2026H1 net cash flow from operating activities already YoY -16.69% to RMB 1.439 billion.
• Chip dispersion and institutional reduction risk: As of 2026-06-30 shareholder count 30,425, compared to 22,124 at end of March 2026, an increase of 8,301, or +37.52%; same period National Social Security Fund Portfolio 106 reduced 672,800 shares, Hong Kong Central Clearing reduced 2,077,500 shares, Basic Pension Insurance Fund Portfolio 807 reduced 191,500 shares, Abu Dhabi Investment Authority reduced 1,227,700 shares, Penghua CSI Subdivided Chemicals ETF reduced 1,897,000 shares, institutional holding concentration decline may increase share price volatility.
• Earnings forecast downward revision and performance below expectations risk: After the 2026 interim report institutional forecasts showed clear downward revision, Open Source Securities lowered 2026E net profit attributable to parent from RMB 1.754 billion to RMB 1.510 billion (magnitude approximately -14%), downward revision mainly due to export exchange losses and raw material cost increases; April multiple institutions gave RMB 1.6—1.75 billion forecasts have been partially falsified by exchange rate and cost shocks, if Huludao project ramp-up progress or technical material price recovery below expectations, actual performance may be lower than current approximately RMB 1.55—1.60 billion forecast center.
• Internal operating pressure reflected by equity incentive assessment not meeting targets: In March 2026 due to 2022 restricted stock incentive plan third unlock period performance assessment not meeting targets, implemented repurchase and cancellation of 1,195,555 restricted shares held by 248 incentive recipients (plus 3 departing recipients 17,800 shares), total repurchase and cancellation 1,213,355 shares, involving 251 people, repurchase price for initial grant RMB 37.43/share, reserved portion RMB 30.60/share, assessment not meeting targets itself reflects the company's difficulty in achieving original performance targets in industry downturn cycle, and may affect core team incentive effect.

8. Conclusion and Outlook

The growth logic main line has three: First, Liaoning Youchuang (Huludao) base capacity release constitutes the most clear incremental source, Phase I Stage 1 capacity release, Stage 2 has produced qualified products, Phase II started approval, 1H26 Liaoning Youchuang revenue YoY +68.3%, and undertaking Syngenta patented fungicide pydiflumetofen and other high value-added products China launch, product structure upgrade expected to drive profit center recovery; Second, company key intermediates (ether aldehyde, permethrin acid methyl ester approximately 5,000 tons capacity,功夫acid etc.) self-contained, well-supported, 2025 through process and equipment improvements achieved cost reduction RMB 91.05 million, cost moat relatively prominent in industry thin-profit cycle; Third, innovative drug commercialization advancement, new mechanism innovative drug flufenzine and independently innovated product 'Weijing' already launched March 2026, management proposed striving to launch 1 new product every 1~2 years in next 5 years, multiple products in pipeline entering registration stage, long-term expected to reduce dependence on bulk technical material price cycle.

Risks and constraints are equally clear: Industry level, 2025 China chemical pesticide production first exceeded 4 million tons (YoY +12%), technical material price index 2025-12-28 reported 71.44 points (YoY -2.03%), 72% of tracked products declined YoY, 2026 first half Sinochem Lihua index fell to historical lowest since inception, industry oversupply, intensifying involution landscape not yet reversed, company as technical material price-taker profit pressure has long-term nature; Company level, controlling shareholder Syngenta Group is simultaneously largest customer, related-party sales dependence relatively high (Northeast Securities report shows 2022 Syngenta purchased RMB 5.87 billion, approximately 12% of its external technical material procurement), related-party transaction pricing and order stability need continuous tracking.

Financial and chip level also have marginal changes worth attention: 2026H1 accounts receivable RMB 3.474 billion from beginning of year +21.98%, inventory RMB 1.224 billion from beginning of year +19.12%, collection and inventory pressure rising (accounts receivable turnover days already rose from 66.68 days in 2020 to 121.41 days in 2024); as of 2026-06-30 shareholder count 30,425, compared to 22,124 as of 2026-03-31, an increase of 8,301, or +37.52%, chips clearly dispersed, same period National Social Security Fund Portfolio 106, Hong Kong Central Clearing, Basic Pension Insurance Portfolio 807, Abu Dhabi Investment Authority etc. all had reductions. Overall, the company's "technical material integration + key intermediate self-supply + Youchuang ramp-up + innovative drug reserve" medium-long term logic coexists with "industry thin-profit cycle + related-party sales dependence + exchange rate and cost fluctuations + chip dispersion" short-term constraints, subsequently need to