Report date: 2026-09-13 | Price data: As of the September 11, 2026 close; technical indicators (MA, MACD, RSI, Bollinger Bands) are snapshots as of the September 10, 2026 close and have not yet been recalculated to their final values after the September 11, 2026 close. | Sources: 26 | Report engine: v1 (v2 available)

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Zhejiang Xinan Chemical Industrial Group Co., Ltd. (Xinan Chemical) (600596)

Individual Stock Analysis Report | Industry: Chemicals | Report Date: September 13, 2026 | Based on the close of September 11, 2026; technical indicators (MA, MACD, RSI, Bollinger Bands) are snapshots as of the close of September 10, 2026 and have not been recalculated for final values after the close of September 11, 2026.

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

I. Core Summary

Xinan Chemical's results for the first half of 2026 showed significant recovery: operating revenue of RMB 8.563 billion, up 6.26% year-on-year; net profit attributable to shareholders of RMB 254 million, up 268.03% year-on-year; net profit attributable to shareholders after deducting non-recurring gains and losses of RMB 211 million, turning profitable year-on-year, with half-year net profit already exceeding the full year of 2025. Profit improvement mainly came from price recovery of glyphosate and organosilicon products, cost control, and an increased share of high-value-added products; however, net cash flow from operating activities was only RMB 154 million, down 30.34% year-on-year, and inventory rose 24.66% year-on-year. The transmission of profit improvement to cash flow and inventory still needs to be observed.

The company's main businesses are crop protection and silicon-based new materials, with revenues of RMB 8.066 billion and RMB 4.511 billion respectively in 2025, together accounting for 88.58% of main business revenue. The company has an integrated foundation spanning silicon mines—industrial silicon—organosilicon monomers and agrochemical products, and is extending into agrochemical formulations, plant protection services, silicon-based terminal materials, phosphorus-based flame retardant materials, and new energy battery materials; however, the gross margin of silicon-based basic products in 2025 was only 1.44%, and the basic chemicals business remains significantly affected by product price cycles and industry competition.

From the earnings forecast perspective, institutions on average expect net profit attributable to shareholders for 2026 to 2028 to be RMB 630 million, RMB 947 million, and RMB 1.185 billion respectively, with revenues of RMB 16.744 billion, RMB 18.688 billion, and RMB 20.762 billion respectively. The core assumptions are continued recovery in glyphosate and organosilicon prosperity and an increased share of terminal products. As of September 11, 2026, the company's stock price was RMB 12.49, with a dynamic P/E ratio of approximately 50.77x. Based on institutional average forecast EPS, the P/E ratios for 2026 to 2028 are approximately 24.0x, 16.1x, and 12.8x, and valuation is relatively sensitive to the degree of earnings realization and cycle sustainability.

On the technical front, the stock price recently experienced rapid rally, spike, high-volume pullback, and rebound repair. As of the close of September 11, it was above MA5, MA10, and MA20, and MACD remained in a relatively strong state, but the closing price was above the September 10 Bollinger upper band. Recent turnover rates reached 7.92% to 13.48%, and main funds showed characteristics of rapid in-and-out movement. RMB 12.45 to 13.08 is the recent resistance zone, and RMB 11.26 to 11.86 is the first support zone. While short-term trading activity is relatively high, bullish-bearish divergence is also quite evident.

II. Company Overview

2.1 Basic Information

Item	Content
Stock Code	600596
Listing Date	September 6, 2001
Headquarters	Jiande City, Zhejiang Province
Core Businesses	Crop protection, silicon-based new materials, extending into phosphorus-based flame retardant materials, new energy battery materials, etc.
2025 Operating Revenue	RMB 14.625 billion
2025 Main Business Revenue	RMB 14.198 billion, accounting for 97.09% of operating revenue

2.2 Main Business and Product Layout

Crop protection: glyphosate technical and formulations, glufosinate, L-glufosinate, selective herbicides, insecticides, fungicides, and agricultural plant protection services, forming an integrated industrial chain of "intermediates—technical—formulations—services"; 2025 sales revenue of RMB 8.066 billion, accounting for 56.81% of main business revenue.
Silicon-based new materials: covering silicon mines, industrial silicon, silicon powder, organosilicon monomers, silicone rubber, silicone oil, silicone resin, silane coupling agents, and high-purity polysiloxanes; 2025 sales revenue of RMB 4.511 billion, accounting for 31.77% of main business revenue.
Other emerging businesses: including phosphorus-based flame retardant materials, artificial graphite anode materials, silicon-carbon anode materials, oxide solid electrolytes, computing power coolant, robot skin, and semiconductor packaging materials, at stages of cultivation, scaling, or industrialization advancement.
2025 main business revenue structure: agrochemical products RMB 8.066 billion, accounting for 56.81%; silicon-based new materials RMB 4.511 billion, accounting for 31.77%; other businesses RMB 1.621 billion, accounting for 11.42%.
2025 gross margin by product: silicon-based basic products 1.44%, silicon-based terminal products 22.25%, agrochemical self-produced products 14.66%, agrochemical trading products 5.76%, other products 6.04%.

2.3 Upstream and Downstream Position in the Industrial Chain and Cost-Profit Structure

Xinan Chemical occupies a midstream chemicals position of "integration of resources and basic chemicals, extending into agrochemical formulations and silicon-based terminal materials." The company has formed partial internal supporting through silicon mines, industrial silicon, organosilicon monomers, and the "chlorine—phosphorus—silicon" circular economy, while extending into pesticide formulations, plant protection services, silicone rubber, silicone oil, silanes, and high-end silicon-based materials.

The silicon-based business mainly procures or uses silicon mines, industrial silicon, silicon powder, as well as chlorine, methanol, and other chemical raw materials and energy power required for organosilicon monomer synthesis. The company possesses silicon mine resources, industrial silicon capacity, and organosilicon monomer capacity, with some segments capable of internal supporting.
The upstream of the agrochemical business includes phosphorus, chlorine, methanol, glycine, and other pesticide intermediates and basic chemical raw materials. The raw material composition varies among different pesticide varieties.
In 2025, raw materials accounted for 68.81% and fuel power for 8.88% of the cost of the silicon-based new materials business; raw materials accounted for 77.89% and fuel power for 6.78% of the cost of the agrochemical business, indicating that the company is relatively sensitive to raw material and energy prices, with particularly high sensitivity in the agrochemical business.
In 2025, the average steam procurement price decreased 15.73% year-on-year, reducing operating costs by approximately RMB 63.18 million; falling raw material prices in the silicon-based business reduced raw material costs by 19.86% year-on-year, while agrochemical products saw raw material costs rise 20.00% year-on-year due to increased production and changes in market supply and demand.
In 2025, the top five suppliers' procurement amounted to RMB 975 million, accounting for 14.53% of annual total procurement; no single supplier accounted for more than 50% of procurement. Supplier names and specific raw material procurement sources were not disclosed, making it impossible to fully determine the degree of dependence on any specific supplier or single raw material.
Agrochemical business customers include overseas pesticide distributors, traders and terminal channels, domestic agricultural input distributors, agricultural growers, large-scale agricultural operators, and agricultural service platforms. In 2025, overseas sales were RMB 5.286 billion, accounting for approximately 37.23% of main business sales. Product pricing is largely affected by global pesticide supply and demand, prices of major varieties such as glyphosate, overseas destocking cycles, and international agricultural planting demand. The company clearly has the characteristics of a price taker for bulk agrochemical products overall.
The downstream of the silicon-based business covers new energy vehicles, photovoltaics and power equipment, construction and industrial sealing, electronics and electrical and semiconductor packaging, communications, healthcare, aerospace, special equipment, AI computing power, and humanoid robots.
Silicon-based basic products are affected by prices of bulk products such as organosilicon monomers and DMC, and customers have relatively strong bargaining power; silicon-based terminal products rely on formulation, certification, application development, and customer introduction to form certain differentiated bargaining power, with customer stickiness and bargaining power typically higher than basic products.
In 2025, the top five customers' sales totaled RMB 1.370 billion, accounting for 9.36% of annual total sales; no single customer accounted for more than 50% of sales. This data is based on the disclosure standards of the 2025 annual report, with customer names anonymized, and it is not possible to determine whether customers correspond to agrochemical, silicon-based, or other businesses, so customer bargaining power cannot be fully judged from this.
The company has a marketing network covering more than 130 countries and regions worldwide, with cumulative ownership of over 5,000 overseas pesticide registration certificates; it has obtained IATF16949, ISO13485, GJB9001C and other system certifications, which facilitate entry into automotive, medical, military, and high-end equipment supply chains, but the scaling of high-end applications still depends on customer certification cycles and downstream demand.
As of December 31, 2025, the book value of accounts receivable was RMB 1,424,307,400, operating revenue was RMB 14.625 billion, and accounts receivable accounted for approximately 9.74% of annual operating revenue; the top five accounts receivable and contract assets totaled RMB 230 million, accounting for 15.65% of accounts receivable and contract assets balance. The proportion of the top five receivable customers is not high, but customer names are anonymized. The above data only reflects accounts receivable concentration and cannot fully represent sales revenue concentration or customer bargaining power. The research notes did not provide accounts receivable turnover days, prepayments, or accounts payable data.
Supplier concentration was 14.53% of annual total procurement from the top five suppliers in 2025, and customer concentration was 9.36% of annual total sales from the top five customers in 2025; both figures come from relevant disclosures in the 2025 annual report, with names anonymized. The research notes did not provide data for other years, and cross-determination of specific business attribution was not possible.

Year	Gross Margin	Net Margin	Brief Explanation
2021	Main business gross margin 26.33%	Research notes did not provide net margin data	Post-pandemic global demand recovery, rising prices of agrochemical and organosilicon products with temporarily tight supply; silicon-based basic products gross margin 47.42%, agrochemical self-produced products gross margin 27.17%.
2022	Main business gross margin 25.14%	Research notes did not provide net margin data	Agrochemical and organosilicon product prices remained at relatively high levels, but organosilicon basic product prices declined and unit costs rose, with overall gross margin declining from 2021.
2023	Main business gross margin 13.14%	Research notes did not provide net margin data	Glyphosate and organosilicon product prices and sales volumes declined to varying degrees; silicon-based basic products gross margin fell to -2.50%, agrochemical self-produced products gross margin fell to 19.75%.
2024	Main business gross margin 11.35%	Research notes did not provide net margin data	Industry supply pressure and low product prices continued to suppress profits; agrochemical self-produced products gross margin fell to 14.32%, silicon-based terminal and specialty silane products gross margin was 19.50%, higher than silicon-based basic products.
2025	Approximately 11.7%	Research notes did not provide net margin data	Calculated based on operating revenue of RMB 14.625 billion and operating costs of RMB 12.914 billion; agrochemical self-produced products gross margin recovered to 14.66%, silicon-based terminal products gross margin rose to 22.25%, but silicon-based basic products gross margin was only 1.44%. There was a product classification adjustment in this year, and cross-year comparisons should use restated same-caliber data.

The company is positioned midstream in the integration of resources and basic chemicals. Basic silicon-based materials and bulk agrochemical products are skewed toward midstream processing with relatively thin profit margins, while agrochemical formulations, plant protection services, and silicon-based terminal materials extend toward the right side of the smile curve. Future profit improvement mainly depends on price recovery of basic products, increased share of agrochemical and organosilicon terminal products, reduced resource supporting and energy costs, and scaling of new businesses such as high-purity polysiloxanes, flame retardants, and silicon-carbon anodes.

III. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

Reporting Period	Operating Revenue	YoY	Net Profit Attributable to Shareholders	YoY
H1 2026 (January 1 to June 30, 2026)	RMB 8.563 billion	Up 6.26% year-on-year	Net profit attributable to shareholders of the listed company RMB 254 million	Up 268.03% year-on-year
Q2 2026	RMB 4.480 billion	Up approximately 1.0% year-on-year, up 9.74% quarter-on-quarter	Net profit attributable to shareholders of the listed company approximately RMB 158 million	Up approximately 339.4% year-on-year, up 64.0% quarter-on-quarter
Full Year 2025	RMB 14.625 billion	Down approximately 0.28% year-on-year	Net profit attributable to shareholders of the listed company RMB 147 million	Up approximately 185.67% year-on-year

The 2026 semi-annual report was disclosed on August 25, 2026, and is unaudited. Net profit attributable to shareholders after deducting non-recurring gains and losses for H1 2026 was RMB 211 million, compared with a loss of RMB 23,917,700 in the same period last year, achieving a turnaround; Q2 2026 net profit after deducting non-recurring gains and losses was approximately RMB 130 million, turning profitable year-on-year and up approximately 65.1% quarter-on-quarter.

H1 2026 revenue growth was moderate, but net profit attributable to shareholders and net profit after deducting non-recurring gains and losses improved significantly, mainly related to price recovery of glyphosate and organosilicon products and recovery of product gross margins. Net cash flow from operating activities was RMB 154 million, down 30.34% year-on-year, lower than net profit attributable to shareholders for the same period; inventory rose 24.66% year-on-year, and inventory turnover declined from 2.84x in the same period last year to 2.82x. Attention needs to be paid to the conversion of profit growth into cash flow and inventory changes during the cycle recovery process. The weighted average return on equity for H1 2026 was 2.02%, an increase of 1.47 percentage points from the same period last year; as of June 30, 2026, net assets attributable to shareholders of the listed company were RMB 12.572 billion, up 0.90% from the end of 2025, and total assets were RMB 22.357 billion, up 1.66% from the end of 2025.

3.2 Earnings Forecast

As of September 3, 2026, Tonghuashun data shows that a total of 9 institutions made forecasts for Xinan Chemical's 2026 annual results within the past 6 months, and aggregated institutional forecasts for 2026 to 2028. The above data constitutes broker research forecasts or terminal aggregation, not company performance commitments; different institutions have different assumptions regarding glyphosate and organosilicon prices and the pace of industry supply-demand recovery, and cannot be fully equated with strictly real-time consensus expectations.

Year	Operating Revenue	Net Profit Attributable to Shareholders	Net Profit Growth Rate	Earnings Per Share (EPS)
2026E	Institutional forecast average RMB 16.744 billion, public forecast range approximately RMB 16.406 billion to RMB 17.109 billion	Net profit attributable to shareholders average RMB 630 million, forecast range RMB 602 million to RMB 656 million	Average approximately 325.58%	Average RMB 0.47, forecast range RMB 0.45 to RMB 0.49
2027E	Institutional forecast average RMB 18.688 billion	Net profit attributable to shareholders average RMB 947 million, forecast range RMB 885 million to RMB 1.028 billion	Average approximately 48.79%	Average RMB 0.70, forecast range RMB 0.66 to RMB 0.76
2028E	Institutional forecast average RMB 20.762 billion	Net profit attributable to shareholders average RMB 1.185 billion, forecast range RMB 1.124 billion to RMB 1.288 billion	Average approximately 28.78%	Average RMB 0.88, forecast range RMB 0.83 to RMB 0.95

3.3 Valuation Level and Institutional Ratings

Institution	Rating	Date	Remarks
Great Wall Securities	Buy	September 1, 2026	Expects net profit attributable to shareholders for 2026 to 2028 of RMB 642 million, RMB 943 million, and RMB 1.172 billion respectively, with EPS of RMB 0.48, RMB 0.70, and RMB 0.87 respectively; based on the closing price of August 31, 2026, corresponding forecast P/E ratios of approximately 23.4x, 15.9x, and 12.8x; no explicit target price in the report.
China Merchants Securities	Public summary does not specify rating	August 31, 2026	Forecasts net profit attributable to shareholders for 2026 to 2028 of RMB 609 million, RMB 891 million, and RMB 1.124 billion respectively, with EPS of RMB 0.45, RMB 0.66, and RMB 0.83 respectively; public summary does not show a target price.
Northeast Securities	Overweight	Research report dated July 14, 2026, earnings forecast data updated to July 12, 2026	Public research summary does not show a target price; forecasts net profit attributable to shareholders for 2026 to 2028 of RMB 656 million, RMB 961 million, and RMB 1.273 billion respectively, with EPS of RMB 0.49, RMB 0.71, and RMB 0.94 respectively.
Shenwan Hongyuan	Overweight	June 30, 2026	Public research summary does not show a target price.
Sinolink Securities	Overweight	February 13, 2026	Target price RMB 14.24; at that time estimated 2026 net profit attributable to shareholders of approximately RMB 640 million, valued at approximately 30x 2026 forecast P/E ratio.
CITIC Securities	Outperform Industry	April 22, 2026	Target price RMB 15.23; estimated 2026 net profit of approximately RMB 630 million and 2027 net profit of approximately RMB 1.028 billion, with a target price of RMB 15.23 corresponding to approximately 20x 2027 P/E ratio.

As of the close of September 3, 2026, the stock price was RMB 11.29, total market capitalization approximately RMB 15.237 billion, TTM earnings per share approximately RMB 0.26, TTM P/E ratio approximately 43.42x; 52-week high RMB 18.39, low RMB 9.50. Lixinger data as of September 2, 2026 shows PE-TTM approximately 43.95x, historical percentile approximately 17.10%, PB approximately 1.16x, market capitalization approximately RMB 14.589 billion. Based on the closing price of September 3, 2026 and institutional average forecast EPS, the P/E ratios for 2026E, 2027E, and 2028E are approximately 24.0x, 16.1x, and 12.8x respectively. Based on the 2026 semi-annual report net assets attributable to shareholders of RMB 12.572 billion and total share capital of approximately 1.350 billion shares, net assets per share are approximately RMB 9.31, corresponding to PB of approximately 1.21x. Among disclosed target prices, RMB 14.24 represents potential upside of approximately 26.1% from RMB 11.29, and RMB 15.23 represents potential upside of approximately 34.9% from RMB 11.29. The current TTM valuation is relatively high, mainly affected by the low earnings base over the past 12 months; after adopting institutional earnings forecasts, the forward valuation shows a clear switch. It should be noted that the target price sample size is limited and comes from different times and valuation assumptions, and cannot be regarded as a unified multi-institutional target price; agrochemicals and organosilicon have cyclical characteristics, and if product prices decline, the forward P/E ratios calculated based on 2026 to 2028 earnings forecasts may be passively revised upward.

IV. Recent News and Announcements

4.1 2026 Semi-Annual Earnings Pre-Increase Announcement (2026-07-09)

Estimated H1 2026 net profit attributable to shareholders of RMB 240 million to RMB 260 million, up 247% to 276% year-on-year. Reasons for change: increased market selling prices of leading products, cost control, and increased sales proportion of high-value-added products. Implied Q2 net profit of RMB 144 million to RMB 164 million, up 49% to 70% quarter-on-quarter from Q1 (approximately RMB 96 million). Source: aastocks Gelonghui article.

4.2 2026 Q1 Earnings Pre-Increase Announcement (Announcement No. 2026-007, dated 2026-04-15)

Estimated Q1 net profit attributable to shareholders of RMB 90 million to RMB 100 million, compared with RMB 33,130,500 in the same period last year, up 171.65% to 201.84% year-on-year. Estimated Q1 net profit attributable to shareholders after deducting non-recurring gains and losses of RMB 70 million to RMB 80 million, compared with -RMB 23,270,000 in the same period last year, an increase of RMB 93.27 million to RMB 103.27 million. Reasons: overall price increases of leading products, cost reduction and efficiency improvement, and increased proportion of high-margin terminal products. Source: East Money announcement page (cited by multiple media including Securities Daily, People's Financial News, and Lanjinger Finance).

4.3 2026 Q1 Report Official Data (disclosed 2026-04-28)

Operating revenue RMB 4.083 billion, up 12.69% year-on-year; net profit attributable to shareholders RMB 96 million, up 190.61% year-on-year. Source: Great Wall Securities research report "Xinan Chemical: 1Q26 Company Performance Gradually Recovering..." 2026-06-10.

4.4 2026 Semi-Annual Report (disclosed on the evening of 2026-08-24, published in newspapers on August 25)

Operating revenue RMB 8.563 billion, up 6.26% year-on-year; net profit attributable to shareholders RMB 254 million, up 268.03% year-on-year (same period last year RMB 69,073,400); net profit attributable to shareholders after deducting non-recurring gains and losses RMB 211 million (same period last year loss of RMB 23,917,700, turnaround); net cash flow from operating activities RMB 154 million, down 30.34% year-on-year; basic EPS RMB 0.1884; weighted average ROE 2.02% (up 1.47pct year-on-year); asset-liability ratio 38.80%; gross margin 14.37% (approximately 10.78% last year). The company stated that H1 net profit had already exceeded the full year of 2025. Source: Securities Star, 10jqka, China Securities Journal, National Business Daily. Note: One "earnings express" article stated the semi-annual report was released on August 21, inconsistent with the August 24 evening/August 25 timing from most sources. August 21 is suspected to be a drafting or timing error, and the August 24 evening disclosure should prevail.

4.5 2025 Q3 Report (2025-10-29)

Net profit attributable to shareholders RMB 71.38 million, down 46.21% year-on-year, basic EPS RMB 0.0529. Source: Securities Star trading notice.

4.6 2025 Annual Report (disclosed 2026-04-22)

Agrochemical products business sales revenue RMB 8.066 billion, up 3% year-on-year. Full-year silicon-based basic/silicon-based terminal/agrochemical self-produced/agrochemical trading revenue were RMB 2.487/2.024/6.875/1.191 billion respectively; 2025 net profit after deducting non-recurring gains and losses narrowed year-on-year (per Great Wall Securities research report). 2025 net operating cash flow RMB 902 million, up 64.95% year-on-year.

4.7 2025 Annual Profit Distribution and Equity Distribution Implementation (Announcement No. 2026-034, disclosed 2026-06-03/04)

Cash dividend of RMB 0.10 per share (including tax), based on total share capital of 1,349,597,049 shares, with total cash distribution of RMB 134,959,704.90. Record date June 10, 2026, ex-dividend date and cash dividend payment date June 11, 2026. Transfar Group, Zhejiang Transfar Chemical Group, Kaihua County State-owned Assets, Jiande City State-owned Assets, Kaihua County Huakong, etc. were paid directly by the company. Source: Shanghai Securities News, cnfin, aastocks, NetEase citations.

4.8 2025 Annual Shareholders' Meeting (held 2026-05-20)

344 shareholders and proxies attended, representing 450,462,429 voting shares, accounting for 33.3775%. Nine non-cumulative voting proposals were reviewed and approved, with approval rates for core proposals all exceeding 99%, including: 2025 Board of Directors work report, 2025 annual report, 2025 annual profit distribution plan, permanent replenishment of working capital with surplus raised funds from completed investment projects and cancellation of special accounts, chairman's 2025 compensation, 2026 credit and guarantee limit estimates, renewal of the "Financial Services Agreement" with Transfar Group Finance Co., Ltd. and related-party transaction, re-appointment of 2026 audit institution (Tianjian), etc. Related shareholders Transfar Group Co., Ltd., Zhejiang Transfar Chemical Group Co., Ltd., and Wu Yanming abstained from voting on relevant proposals. Source: cnfin resolution announcement, Sina Finance.

4.9 A Series of Related/Routine Announcements Published on the Same Day as the 2025 Annual Report (2026-04-22) (Title List)

2025 annual profit distribution plan announcement; 2025 annual main operating data announcement; 2026 asset pool business; 2026 use of idle self-owned funds for entrusted wealth management; 2025 provision for asset impairment; 2026 company and controlled subsidiaries credit and guarantee limit estimates; continuous risk assessment report on Transfar Group Finance Co., Ltd.; accounting policy changes; continued hedging business; permanent replenishment of working capital with surplus raised funds from completed investment projects and cancellation of special accounts; re-appointment of 2026 audit institution; renewal of "Financial Services Agreement" with Transfar Group Finance Co., Ltd. and related-party transaction; estimated 2026 daily related-party transactions; 2025 ESG report and summary; resolution of the 24th meeting of the 11th Board of Directors; notice of convening the 2025 annual shareholders' meeting. Source: Caitong Securities "Today's Announcement Highlights."

4.10 Buyback and Shareholder Returns (★Obvious Data Contradictions Exist, Key Verification Needed)

Background: On the May 13, 2025 interactive platform, when responding to "whether buybacks are being considered," the company stated: the current external environment is complex and operations are under pressure, cash is crucial for the company, and it would prioritize using funds to improve operating quality, while monitoring market dynamics, studying relevant policies, and making recommendations to the Board of Directors—i.e., no buyback commitment was made at that time. August 19, 2026 interactive platform reply (one source): As of July 31, 2026, the company through its share buyback dedicated securities account had cumulatively repurchased 479,400 shares via centralized bidding, accounting for 0.34% of total share capital, with the highest transaction price of RMB 24.90/share and lowest of RMB 21.17/share, total transaction amount of RMB 11,274,086 (excluding fees), and the buyback plan had not yet been fully implemented. Cross-verification conclusion: This data is internally and externally inconsistent. ① 479,400 shares as a percentage of total share capital of 1,349,597,049 shares is approximately 0.036%, not 0.34%; ② total transaction amount of RMB 11,274,086 ÷ 479,400 shares ≈ RMB 23.5/share, which is severely inconsistent with the company's stock price around August 2026 (approximately RMB 10, closing at RMB 10.38 on August 24); ③ another third party (Value Master gurufocus) shows "cash outflow from stock repurchases as of 2026-03 was 0." Therefore, this "buyback" data is suspected to be a single-source scraping error or misattribution, and is not accepted as confirmed fact. It is recommended to refer to official exchange buyback progress announcements.

4.11 Changes in Shareholder Structure

Number of shareholders: As of June 30, 2025, 85,164 accounts (down 1,224 accounts or 1.42% from March 31, 2025); as of September 30, 2025, 76,475 accounts (down 8,689 accounts or 10.20% from the previous period); as of June 30, 2026, 113,100 accounts—the number of accounts rose significantly from a year earlier, showing characteristics of retailization/chip dispersion. Top ten shareholders (as of June 30, 2026): Zhejiang Transfar Chemical Group 12.83%, Transfar Group 10.55%, Kaihua County State-owned Assets Operation 5.06%, Jiande City State-owned Assets Investment Holding 2.52%, Zhou Qibao 1.73%, Kaihua County Huakong 1.68%, with GF Jufeng Mixed, GF Advantage Growth, Hong Kong Central Clearing, PICC Traditional Income, etc. also on the list; the top ten collectively held 508 million shares, accounting for 37.60%. Source: East Money/Jiemian "2026 Interim Report" article, Securities Star trading notice.

4.12 Trading-Level and Industry Policy News

Block trades/Dragon-Tiger List (2025): On November 13, 2025, listed on the Dragon-Tiger List due to closing price deviation of 7%, with total purchases of RMB 186.2 million and total sales of RMB 173.3 million; multiple block trades during 2025 (e.g., two trades totaling 560,000 shares on November 25, 2025, with transaction value of RMB 6.037 million; 275,000 shares on December 15, 2025, at an average price of RMB 10.95/share). Source: Securities Star trading notice. External guarantees: Multiple announcements from July to December 2025 regarding guarantees provided to Zhejiang Xinan, Hefei Xingyu Chemical, Fujian Xinan Technology, Xinan Silicon Materials (Yanjin), Huzhou Qiyuan Jincan New Energy, and other guaranteed parties. Policy/Industry: In H1 2026, glyphosate experienced a significant upward trend—global total capacity of approximately 1.18 million tons/year, with China accounting for nearly 70%, and the top four enterprises having a capacity concentration of approximately 70%; the United States listing glyphosate as a strategic resource triggered precautionary reserve demand; industry "anti-involution" and emission reduction self-discipline drove organosilicon price rebound in H2. Source: Securities Star earnings express, which is media interpretation, not the original company announcement text. Business/Project News: In July 2026, the company stated on the investor interactive platform that its subsidiary Yage Xinan's silicon tetrachloride project had begun trial production, with simultaneous customer sample delivery; the "AI + liquid cooling" business achieved a 0-to-1 breakthrough in H1; L-glufosinate process achieved a key breakthrough and global patent layout was initiated. Source: China Securities Journal.

4.13 Summary of Uncertainties to Note

1. The data point "cumulative buyback of 479,400 shares as of 2026-07-31" appears only in a single source on Hudongyi, and the share percentage, average transaction price versus stock price, and total share capital are all contradictory. Additionally, a third party shows buyback cash outflow of 0—highly questionable, not cross-verified by exchange announcements, and not treated as a confirmed buyback. 2. The semi-annual report disclosure date has two versions: "August 21" and "August 24 evening." The "earnings express" article states August 21, while other mainstream sources indicate August 24 evening disclosure; the latter is adopted. 3. In the semi-annual report, financial expenses turned from -RMB 34,375,500 in the same period last year to RMB 78,020,800 (an increase of approximately RMB 112 million), with exchange gains/losses turning from gains to losses and interest expenses on construction in progress converted to fixed assets being expensed; operating cash flow down 30.34% year-on-year—while profits surged, attention must be paid to cash flow and expense-side pressure. Such breakdown comes from media "earnings express" interpretation, not the original company announcement tables. 4. Some earnings forecasts are preliminary accounting figures, and official figures are subject to periodic reports (the announcement itself notes this). 5. No clear, cross-verifiable "major shareholder increase/decrease" announcements for Xinan Chemical in 2026 were found; changes in shareholder structure mainly manifest as an increase in the number of shareholders. If the report needs to cover "shareholder dynamics," it is recommended to further confirm through exchange announcements whether there are records of purchases/sales by directors, supervisors, senior management, and major shareholders.

V. Stock Price Trend and Technical Analysis

5.1 Price Overview

Indicator	Value
Closing Price	RMB 12.49
Daily Change	+RMB 0.47, up approximately +3.91%
Open/High/Low	RMB 11.79/RMB 12.74/RMB 11.68
Volume	Approximately 121.4 million shares
Turnover	Approximately RMB 1.478 billion
Turnover Rate	Approximately 9.00%
Total Market Capitalization	Approximately RMB 16.856 billion; minor differences exist among different sources
Dynamic P/E / PE(TTM)	Approximately 50.77x
52-Week Price Range	High RMB 18.39 (June 29, 2026); low recorded by different sources as RMB 9.44 (November 5, 2025) or RMB 9.50
Recent Trend	September 8 to September 11, 2026 experienced "limit-up style rally—continued spike—high-volume pullback—rebound repair"; the September 11 close had not effectively exceeded the September 9 intraday high of RMB 12.94

5.2 Technical Indicators

Indicator	Value	Brief Interpretation
MA5	RMB 11.74	As of September 10, the September 10 closing price of RMB 12.02 was above MA5, and short-term price remained above the moving average
MA10	RMB 11.42	As of September 10, the closing price was approximately 5.30% above MA10
MA20	RMB 11.07	As of September 10, the closing price was approximately 8.59% above MA20; this position is also close to the Bollinger middle band
MACD	DIF 0.20; DEA approximately 0.00; MACD histogram +0.40	The MACD histogram is above the zero line, DIF is above DEA, and the short-term trend remains relatively strong
RSI	RSI6 62.4; RSI12 60.2; RSI24 53.6	RSI6 has not yet entered the traditionally extreme overbought zone, but is approaching the strong zone
Bollinger Bands	Upper band RMB 12.22; middle band RMB 11.07; lower band RMB 9.92	The September 11 closing price of RMB 12.49 was above the upper band of RMB 12.22 calculated as of September 10, showing a state of running outside the Bollinger upper band after rapid rally; September 11 final Bollinger indicator data is missing
Recent Trading and Turnover	Trading value over the most recent 4 trading days was approximately RMB 1.303 billion to RMB 2.266 billion, with turnover rates of 7.92% to 13.48%	Trading activity was significantly higher than the Shanghai Main Board median market turnover rate of approximately 1.48% on the same day, with relatively full short-term chip exchange, but also significant bullish-bearish divergence
Main Funds	September 8 net inflow of approximately RMB 332 million; September 9 net outflow of approximately RMB 118 million; September 10 net outflow of approximately RMB 38.02 million; September 11 net inflow of approximately RMB 38.37 million	Recent capital flows show high volatility and rapid in-and-out characteristics, not one-sided sustained inflow; although the most recent 10 trading days saw a total net inflow of approximately RMB 244 million, there were only 4 days of net inflow and 6 days of net outflow

As of September 11, 2026, Xinan Chemical closed at RMB 12.49, having recently experienced rapid rally, spike, high-volume pullback, and rebound repair, with short-term volatility clearly amplified. Based on technical indicators as of September 10, the stock price was above MA5, MA10, and MA20, MACD was above the zero line with DIF above DEA, and the technical trend remained relatively strong; however, the September 11 close was above the September 10 Bollinger upper band, and September 10 saw a high-volume decline, indicating short-term profit-taking and high-level divergence. Main funds moved rapidly in and out over recent trading days, with unstable capital direction. The 52-week high is RMB 18.39, and the current price is approximately 32% below the high; the 52-week low is RMB 9.44 or RMB 9.50 depending on the source, and the current position is in the middle-to-lower part of the 52-week range. The following short-term outlook is only a subjective scenario deduction based on existing data and technical positions in the notes.

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

⚠️ Risk Warning: The following content is only a subjective scenario deduction based on closing data as of September 11, 2026. It does not constitute investment advice, nor is it a single-point prediction of future stock prices; scenario weights are subjective heuristic judgments based on current technical conditions and capital flows, not statistical probabilities.

① Key Technical Levels

Level	Range	Explanation
Short-Term Resistance	RMB 12.45~13.08	Near RMB 12.45 is close to the September 11 closing price and recent high-volume trading zone; RMB 12.72~12.94 corresponds to recent intraday highs; if it breaks above RMB 13.08 with volume, the RMB 13.09~13.67 range can be observed, but volume and sector sentiment need to cooperate
First Support	RMB 11.26~11.86	Corresponds to recent chip peak, the MA5/MA10 vicinity, and short-term high-volume trading zone; if it stabilizes on reduced volume after pullback, the short-term strong structure is not yet clearly damaged
Strong Support	RMB 10.67~11.29	Close to MA20, the body of the previous high-volume bullish candle, and high-volume trading zone; if it effectively breaks below RMB 10.67, the short-term trend may weaken and seek support in the RMB 10.18~10.71 range or even lower

② Next Week Scenarios (Subjective Weights, Not Statistical Probabilities)

Range-bound consolidation (relatively high weight, approximately 50% to 60%; subjective heuristic weight, not statistical probability): Observation range RMB 11.80~12.80. If the stock price fails to sustainably hold above the RMB 12.72~13.08 resistance zone, but the pullback can hold the RMB 11.26~11.86 first support zone, and trading value returns to the recent normal of approximately RMB 1.3 billion to RMB 1.6 billion without consecutive high-volume sell-offs, it may manifest as range consolidation after a spike and pullback.
Weaker downside (moderate weight, approximately 30%; subjective heuristic weight, not statistical probability): Observation range RMB 10.70~11.80. If the stock price breaks below the RMB 11.26~11.86 support zone, while trading value continues to exceed recent normal levels, main funds show consecutive net outflows, and the basic chemicals sector or broader market risk appetite continues to weaken, short-term pullback risk rises; if it further breaks below RMB 10.67, the RMB 10.18~10.71 range can be observed.
Rebound strengthening (low-to-moderate weight, approximately 20%; subjective heuristic weight, not statistical probability): Observation range RMB 12.70~13.70. If the stock price holds above the RMB 12.72~13.08 resistance zone with volume, single-day trading value reaches or exceeds approximately RMB 1.8 billion to RMB 2.0 billion, and main funds shift from net outflow to consecutive net inflow, while basic chemicals or organosilicon, pesticides, and related sectors remain strong, the RMB 13.09~13.67 range can be observed; if it only spikes without volume, sustainability still needs further confirmation.

③ Capital and Liquidity Background

Over the most recent 4 trading days, turnover rates were 7.92%~13.48%, trading value was approximately RMB 1.303 billion to RMB 2.266 billion, and the recent trading value center was roughly RMB 1.3 billion to RMB 1.6 billion; September 9 trading value was RMB 2.266 billion with turnover rate of 13.48%, representing significant volume expansion, while September 11 trading value was RMB 1.478 billion with turnover rate of 9.00%, not yet reaching the September 9 volume level. It was above the Shanghai Main Board median market turnover rate of approximately 1.48% on the same day, indicating recent active trading and relatively full chip exchange, but also meaning significant bullish-bearish divergence. Shareholder structure data as of June 30, 2026: total number of shareholders 113,148 accounts, up approximately 43.64% from March 31, 2026; top ten circulating shareholders collectively held approximately 508 million shares, approximately 37.61%. Tonghuashun classification shows "other institutions" approximately 33.33%, "funds" approximately 4.22%, "insurance companies" approximately 0.64%; public pages do not fully disclose specific institution names and latest increase/decrease directions, and it cannot be asserted that public funds, social security, or QFII continuously increased holdings during the September market. The above shareholder data is more than two months old relative to the current market and has experienced significant volatility from September 8 to September 11; the actual chip structure may have changed. Based on available data, overall chips cannot be considered highly concentrated, and the increase in the number of shareholders means chip dispersion may have risen.

An observable volume-price confirmation signal is: if subsequent single-day trading value continuously expands to above RMB 1.8 billion to RMB 2.0 billion, and the closing price can hold above the RMB 12.72~13.08 resistance zone, this can be viewed as one of the confirmation conditions for continued short-term capital entry; if volume expands but the closing price falls back below RMB 12, caution is needed regarding intensified high-level divergence.

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

Observe whether the RMB 12.45~13.08 resistance zone can be effectively broken with volume expansion; this observation idea does not constitute an operational instruction.
Observe whether the RMB 11.26~11.86 first support zone can stabilize on reduced volume; this observation idea does not constitute an operational instruction.
If it breaks below RMB 10.67, observe whether short-term risk spreads to the RMB 10.18~10.71 range; this observation idea does not constitute an operational instruction.
Observe whether trading value can consecutively reach above RMB 1.8 billion to RMB 2.0 billion, and whether main funds shift from net outflow to consecutive net inflow; this observation idea does not constitute an operational instruction.

The above scenario deduction is based on closing data as of September 11, 2026 and historical price and technical indicator calculations. Short-term stock prices will also be affected by multiple factors including news, capital flows, and the broader market environment. Technical indicators themselves have lag and limitations, do not guarantee actual future trends, and do not constitute buy or sell recommendations. Please combine the latest market information for independent judgment and bear investment risks yourself.

VI. Industry Landscape and Competitor Analysis

6.1 Industry Status

Xinan Chemical spans multiple sub-industries including pesticides, industrial silicon, organosilicon, and specialty materials. Comparable dimensions should be based on the agrochemical and organosilicon industries separately, and it is not appropriate to directly compare comprehensive gross margins with companies in a single sub-industry.

6.2 Competitive Landscape

Pesticide and glyphosate industry: China is the world's major glyphosate production base. Product prices are affected by global agricultural planting area, overseas inventory, export demand, raw material prices, and environmental protection policies; domestic capacity expansion is constrained by environmental protection, safety, and pesticide registration systems.
Glyphosate industry competition is shifting from pure technical expansion to comprehensive competition in technical, formulations, registration, channels, and terminal plant protection services. The company has a marketing network covering more than 130 countries and regions worldwide and over 5,000 overseas pesticide registration certificates.
A July 2025 report by Tianfeng Securities estimated the company's glyphosate capacity at approximately 80,000 tons/year, domestic market share of approximately 10.8%, ranking in the top three domestically; organosilicon business capacity accounts for approximately 7.9% of the industry, ranking in the top five. The above data comes from a single broker research report and has not been fully cross-verified through company announcements and independent industry databases, and can only be used as a broker estimate.
In the organosilicon industry, midstream basic capacity such as industrial silicon, organosilicon monomers, and DMC is mainly concentrated in China; basic products have high homogeneity and strong price cyclicality, and plant scale and energy costs significantly impact competitiveness.
Organosilicon terminal products generally have higher profitability than basic products. New energy, photovoltaics, automobiles, electronics, and healthcare are structural growth markets, and demand structure is developing toward high performance, functionalization, and customization. The company uses more than 80% of its organosilicon monomers for downstream self-production, but in 2025 silicon-based basic product revenue declined 16.11% year-on-year with a gross margin of only 1.44%, still affected by industry cycles and price competition.

6.3 Major Competitors

Company	Positioning	Explanation
Xingfa Group (600141)	Comprehensive chemical enterprise in phosphorus chemicals, glyphosate, glycine, chlor-alkali, organosilicon, fertilizers, and electronic chemicals	Both Xinan Chemical and Xingfa Group have phosphorus chemicals, glyphosate, and organosilicon businesses with resource integration attributes; Xingfa Group has higher weighting in phosphorus chemicals and electronic chemicals, while Xinan Chemical has more prominent crop protection and silicon-based terminal businesses.
Jiangshan Chemical (600389)	Integrated enterprise in glyphosate, pesticides, chlor-alkali, new materials, and cogeneration	Comparable in glyphosate, pesticide technical, and chlor-alkali supporting, but silicon-based new materials business scale and terminal product coverage differ from Xinan Chemical.
Yangnong Chemical (600486)	Pesticide product enterprise in insecticides, herbicides, fungicides, etc.	More focused on pesticide specialization, high-efficiency pesticide varieties, and R&D registration capabilities; Xinan Chemical is more focused on major glyphosate varieties, comprehensive agrochemical solutions, and the "agrochemical + organosilicon" dual main business.
Hoshine Silicon (603260)	Enterprise in R&D, production, and sales of industrial silicon and organosilicon products	Advantages are more skewed toward industrial silicon and organosilicon basic capacity scale; Xinan Chemical has differentiation in agrochemical business, silicon mine resources, and organosilicon terminal products.
Dongyue Silicon Materials (300821)	Enterprise in organosilicon intermediates, silicone rubber, silicone oil, and fumed silica	Business is more concentrated in organosilicon intermediates and downstream deep processing, suitable for comparing Xinan Chemical's silicon-based materials basic products and terminal deep processing capabilities.

Xinan Chemical does not have a single competitor that completely overlaps with its multiple business segments. The agrochemical business can be compared with Xingfa Group, Jiangshan Chemical, and Yangnong Chemical; the silicon-based business can be compared with Hoshine Silicon and Dongyue Silicon Materials. Xinan Chemical's comprehensive differentiation lies in silicon mine resources, industrial silicon—organosilicon vertical integration, agrochemical business foundation, and extension into agrochemical formulations and silicon-based terminal materials; in formal comparisons, comprehensive gross margins across sub-industries should not be directly compared.

VII. Risk Warnings

Risk of glyphosate and organosilicon product price decline: The company's agrochemical business accounted for 56.81% of 2025 main business revenue and silicon-based new materials for 31.77%, and the company clearly has the characteristics of a price taker for bulk agrochemical products; if global pesticide destocking, supply-demand changes, or intensified competition in organosilicon basic products occur, product prices and gross margins may come under pressure again.
Risk of weak profitability in basic businesses: In 2025, silicon-based basic product gross margin was only 1.44%, while raw materials accounted for 68.81% of silicon-based business costs; if price competition in industrial silicon, organosilicon monomers, and DMC continues, basic capacity scale and cost advantages may not translate into stable profits.
Raw material, energy, and inventory risk: Raw materials accounted for 77.89% of agrochemical business costs; in 2025, agrochemical product raw material costs rose 20.00% year-on-year due to increased production and changes in market supply and demand; in H1 2026, inventory rose 24.66% year-on-year and inventory turnover declined from 2.84x to 2.82x. If price recovery falls short of expectations, inventory impairment or increased cash occupation may occur.
Cash flow and expense pressure risk: Net cash flow from operating activities in H1 2026 was RMB 154 million, down 30.34% year-on-year, lower than net profit attributable to shareholders for the same period; meanwhile, financial expenses turned from negative in the same period last year to an expense. Whether profit growth can continue to convert into operating cash flow still needs verification.
Risk of new business commercialization falling short of expectations: Phosphorus-based flame retardant materials, artificial graphite anodes, silicon-carbon anodes, oxide solid electrolytes, AI liquid cooling, robot skin, and semiconductor packaging materials are still at stages of cultivation, scaling, or industrialization advancement; the silicon tetrachloride project is currently in trial production with simultaneous customer sample delivery, and high-end applications still face customer certification cycles and downstream demand uncertainty.
Earnings forecast and valuation volatility risk: As of September 11, 2026, the dynamic P/E ratio was approximately 50.77x, and institutional forward valuation is based on assumptions of continued glyphosate and organosilicon price recovery and rapid profit growth; if the cycle reverses or profits fall below forecasts, forward P/E ratios may be passively revised upward, and the stock price may also be affected by both valuation and expectation downward revisions.
Short-term trading volatility risk: After the recent rapid rally, the stock price experienced a high-volume pullback, with turnover rates reaching 7.92% to 13.48%, and main funds rapidly flowing in and out across multiple trading days; if the stock price cannot effectively break above the RMB 12.45 to 13.08 resistance zone, or breaks below the RMB 11.26 to 11.86 support zone, short-term volatility and pullback magnitude may further expand.
Shareholder and information verification risk: As of June 30, 2026, the number of shareholders rose to 113,100 accounts, showing chip dispersion characteristics; information regarding cumulative buyback of 479,400 shares as of end-July 2026 has internal contradictions in share percentage, average transaction price, and transaction amount, and cannot yet be treated as confirmed fact. Relevant shareholder dynamics and buyback progress should be subject to official announcements.

VIII. Conclusion and Outlook

The company's current core logic is that product price recovery and structural upgrading together drive profit recovery: the agrochemical business has a global marketing network and numerous overseas registration certificates, while the silicon-based business has resources and industrial chain supporting, and continues to expand into silicon-based terminal materials and emerging applications. H1 2026 net profit after deducting non-recurring gains and losses turned profitable, indicating that operating profitability has improved; if glyphosate and organosilicon prices remain relatively stable, and agrochemical formulations, silicon-based terminal products, and emerging materials continue to scale, profit growth may continue to exceed revenue growth.

However, the company's performance still has strong cyclical attributes. From 2021 to 2024, main business gross margin declined from 26.33% to 11.35%, and was approximately 11.7% in 2025, with basic silicon-based product profitability still weak. Therefore, whether institutional earnings forecasts for 2026 to 2028 can be realized depends on factors such as product prices, supply-demand landscape, terminal product share, and cost control, and cannot be extrapolated solely based on H1 high growth.

Follow-up assessment priorities include: whether product price recovery can continue, whether operating cash flow can follow profit improvement, whether inventory growth can be digested, and whether businesses such as silicon tetrachloride, AI liquid cooling, L-glufosinate process, and silicon-carbon anodes can gradually form scaled revenue from trial production or cultivation stages. The stock price is in a state of technically strong but amplified volatility in the short term, and valuation also incorporates some earnings recovery expectations. The pace of fundamental realization and market trading sentiment may jointly affect stock price performance.

Data Sources

Reports are generated by AI from public online information and may contain errors or outdated information. They are for research only, not investment advice. Verify material facts against company filings and authoritative sources.