Jinhong Gas Co., Ltd. (688106)

Stock Analysis Report | Industry: Industrial Gas / Electronic Chemicals | Report Date: September 13, 2026 | The research memo did not provide a complete price-data date; it only mentioned that the current data date is approximately 2026-09-11; the market snapshot is derived from price records on pages such as East Money and Jiufang Zhitou, and the exact cut-off time is uncertain.

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

1. Core Summary

Jinhong Gas achieved operating revenue of RMB 1.473 billion in the first half of 2026, up 12.12% year on year, but net profit attributable to shareholders was only RMB 68 million, down 17.41% year on year, and non-recurring net profit attributable to shareholders was RMB 18 million, down 73.50% year on year; the comprehensive gross margin fell to 26.98%. Revenue growth coexists with pressure on core-business profitability; profit performance was significantly weaker than revenue, and net profit attributable to shareholders was affected by approximately RMB 39.53 million in gains from disposal of non-current assets, so the assessment of operating quality should focus on the non-recurring basis.

The company's growth mainly came from expansion in bulk gas, specialty gas, on-site gas supply and rental businesses, as well as the introduction of semiconductor customers and the ramp-up of helium. In the first half of 2026, revenue from bulk gas, specialty gas, and on-site gas supply and rental grew by 13.00%, 21.35% and 16.11%, respectively; revenue from the integrated circuit industry grew 29.56% year on year, and helium revenue grew approximately 141% year on year. Among these, the gross margin of on-site gas supply and rental was 52.67%, significantly higher than 24.34% for bulk gas and 21.59% for specialty gas, indicating potential room for improvement through business mix optimization.

The company's profit pressure mainly came from declines in product selling prices and gross margins, intensified industry competition, and increased depreciation expenses after the concentrated transfer to fixed assets of earlier projects. In 2025, net profit attributable to shareholders fell 34.44% year on year, and in the first quarter of 2026, net profit attributable to shareholders fell 88.93% year on year, showing that front-loaded depreciation and price pressure were once concentrated; in the second quarter of 2026, revenue grew 17.16% year on year and net profit attributable to shareholders grew 64.99% year on year, a clear sequential recovery, but non-recurring profitability remained weak, and the sustainability of the second-quarter improvement still needs to be verified by subsequent results.

Recent project progress includes the completion of trial production of electronic-grade dichlorosilane, with an annual capacity of 200 tonnes and customer certification underway, as well as the Xinjiang Aral BOG helium extraction project carrying out equipment installation and commissioning, expected to enter trial production in the second half of 2026. The company's technical-analysis materials are incomplete; currently they only show that the stock rose 0.55% this week and that main-force funds had a weekly net inflow of RMB 57.2794 million, lacking moving averages, MACD, RSI, trading volume and clear support/resistance levels, so short-term trends cannot be precisely judged.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Bulk gas: 2025 revenue of RMB 1.173 billion (+20.57%), accounting for 42.3%, gross margin 29.47% (down 1.79 pct year on year); 2026H1 revenue of RMB 616.5 million (+13.00%), gross margin 24.34% (down 5.58 pct year on year)
• Specialty gas: 2025 revenue of RMB 891 million (-7.42%), accounting for 32.1%, gross margin 23.40% (down 4.29 pct year on year); 2026H1 revenue of RMB 504.5 million (+21.35%), gross margin 21.59% (up 0.63 pct year on year)
• On-site gas supply and rental: 2025 revenue of RMB 357 million (+28.57%), accounting for 12.9%; 2026H1 revenue of RMB 198 million (+16.11%), gross margin 52.67% (down 5.11 pct year on year, the highest among all segments)
• Gas (natural gas): 2025 revenue of RMB 231 million (+8.29%), accounting for 8.3%; 2026H1 revenue of approximately RMB 100 million (-15.3%), gross margin approximately 17.5%
• Company positioning: an environmentally friendly, intensive and comprehensive gas service provider professionally engaged in integrated solutions for gas R&D, production, sales and service, adhering to the "vertical and horizontal development strategy: vertical development, horizontal layout," and providing specialty gas, bulk gas and natural gas in three major categories and more than 100 gas varieties

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

Jinhong Gas is located in the midstream of the industrial gas industry chain — production, purification, filling, distribution and on-site operation and maintenance services. It is a typical capital-intensive "manufacturing + service" hybrid with a limited regional service radius, rather than an upstream resource monopolist or a downstream brand owner. On the upstream side, helium is mainly directly sourced overseas (price taker), the raw material liquid ammonia for ultra-high-purity ammonia is purchased externally (price taker), and the substantive cost of air separation gas production is electricity and equipment depreciation; downstream consists of dispersed manufacturing customer groups in pan-semiconductors, machinery manufacturing, new materials, high-end equipment and other sectors.

• Liquid ammonia: the main raw material for ultra-high-purity ammonia (the company's core specialty gas product), purchased externally. In its July 2023 survey, the company clearly stated that it "has reached a strategic cooperation with the largest local industrial ammonia production plant, and also has alternative plants in China and other regions to ensure raw material supply" (Tonghuashun survey record, 2023-07-17). This indicates that on the liquid ammonia side the company is a price taker, managing supply risk through strategic cooperation with large ammonia plants plus multi-source alternatives; no supplier concentration data was disclosed (information gap).
• Air / electricity / equipment depreciation: the raw material for air separation gas production (oxygen, nitrogen, argon) is air, and the substantive cost is electricity and equipment depreciation. The company itself stated that "the gas industry has capital-intensive characteristics, which determines that capital demand is relatively large" (January 2026 survey record), a typical cost structure of heavy assets and high depreciation.
• Helium (strategically scarce resource): the company has built a dual-drive safeguard system of "overseas direct sourcing + domestic self-production." Overseas direct sourcing means it remains a price taker on the resource side, subject to international helium supply-demand and geopolitical disruptions (the title of the China Merchants Securities 2026-03-29 research report mentioned that "Middle East conflict may boost helium price increases"). Domestic self-production path: in March 2025, cooperation with the High-Speed Maglev Shanxi Provincial Laboratory and Beijing Jingneng Puhua Environmental Technology on helium energy technology R&D; in June 2025, cooperation with Aral Jingteng Energy to plan construction of a helium extraction and purification facility in Xinjiang; in July 2025, establishment of Jinhong Gas (Xinjiang) Co., Ltd.
• Natural gas: the gas business involves externally purchased gas sources and resale with a markup, with the lowest gross margin (approximately 17.5% in 2026H1), and the company is a price taker.
• Packaging / storage and transportation equipment: capital expenditure items such as steel cylinders, tank trucks and storage tanks, constituting one of the main sources of depreciation pressure.
• Industry structure (disclosed basis, first three quarters of 2024): pan-semiconductor industry revenue accounted for 31%, of which integrated circuits accounted for 13% (up 30% year on year); machinery manufacturing 15%; new materials 13%; high-end equipment manufacturing 10%.
• Rapid decline in photovoltaic share: in the first three quarters of 2025, the company's revenue share from the photovoltaic industry was approximately 4%, and the company clearly stated it was "lower than before" (January 2026 survey); in 2023Q1 pan-semiconductors accounted for 26%, used to observe the upward trend.
• Customer development: in 2025H1, 18 new semiconductor customers were introduced (covering substrate, manufacturing and packaging stages); in full-year 2025, more than 20 new semiconductor customers were introduced (Sina Finance 2026-03-30).
• Customers of electronic bulk carrier gas / on-site gas supply projects (B2B long-term agreements): already in operation — North Integrated Circuit (Phase I), Guangdong Xinyu Energy, Xi'an Weiguang Technology, Xiamen Tianma Optoelectronics, Wuxi Huarun Shanghua, Jishan Mingfu, Yunnan Chenggang, etc.; newly landed in 2025 — Xincheng Hanqi Semiconductor, Zhejiang Laibao Display, Shanwei Truly, Xinye Era, Gaoxin Technology, Wuhan Minsheng; in 2025 "North Integrated Circuit" contributed approximately RMB 46 million and "Guangdong Xinyu Energy" contributed approximately RMB 20 million in performance amounts (Ping An Securities 2026-03-31).
• Pricing dynamics (industry attribute judgment): industrial gas has a pattern of "long-term contracts / annual price reduction negotiations between gas suppliers and manufacturing customers." Electronic bulk carrier gas and on-site gas supply are long-term gas supply contracts of 10–15 years, with stable revenue but price terms that usually include gradual price reductions; the bulk gas retail side is spot pricing at regional retail outlets, with greater flexibility. The logic is structurally similar to the "annual price reduction" in auto parts, but the contract period is longer and switching costs are higher (the company's original words in its 2023 survey: there is not much difference between a customer building its own operation and maintenance team and outsourcing, but outsourcing is safer).
• Operating cash flow consistently higher than net profit: in the first three quarters of 2025, net operating cash flow was RMB 290 million, while net profit attributable to shareholders in the same period was only RMB 116 million (company January 2026 survey record); in 2026Q1, net operating cash flow was RMB 48.163 million vs. net profit of RMB 5.5507 million (Huaxin F10, data for 2026Q1). From the perspective of profit-to-cash-flow conversion, the company has not shown obvious signs of profit being heavily tied up by receivables, consistent with the business form of "bulk gas retail mostly cash / short credit terms + electronic bulk carrier gas collected according to contract." However, this search did not obtain the absolute amount of accounts receivable, accounts receivable turnover days, or details of prepayments / accounts payable, so the above judgment can only be an indirect inference and cannot be used as direct evidence of "strong bargaining power"; it is recommended to supplement figures from the "accounts receivable" notes in the 2025 annual report and the balance sheet details in the 2026 half-year report. Asset / liability scale for reference: total assets of RMB 7.858 billion as of 2025-09-30 (up 16.12% from the end of the previous year); at the end of 2026Q1, total assets of RMB 8.066 billion, total liabilities of RMB 4.315 billion, and shareholders' equity of RMB 3.751 billion (Huaxin F10, 2026Q1).
• Combined share of top five customers: no disclosed data was obtained in this search, marked as an information gap. The company's downstream consists of dispersed manufacturing customer groups such as semiconductors / panels / steel / machinery manufacturing; based on public statements, customer concentration risk has not been emphasized, but there is a lack of quotable quantitative data. Supplier concentration was also not disclosed (information gap).

Jinhong Gas is located in the midstream of the industrial gas industry chain — production, purification, filling, distribution and on-site operation and maintenance services. It is a typical capital-intensive "manufacturing + service" hybrid with a limited regional service radius, rather than an upstream resource monopolist (helium directly sourced overseas as a price taker, liquid ammonia purchased externally) or a downstream brand owner. Its further margin improvement will not come from simple price increases, but from three paths: (1) product mix upgrading — increasing the share of high-gross-margin businesses such as specialty gas (semiconductor-grade), helium, and on-site gas supply / electronic bulk carrier gas (on-site gas supply gross margin of 52.67%, far higher than bulk gas at 24.34%); (2) regional density economics — "new outlets + M&A integration" to increase distribution density in a single region and dilute unit transportation costs; (3) self-built capacity replacing external procurement — the Xinjiang BOG helium extraction facility, electronic-grade dichlorosilane (200 tonnes/year), ALD/CVD and other self-built capacity advances. Brokerage consensus judgment: profit pressure is the dual result of "price cycle + front-loaded depreciation," not a demand collapse — 2026Q2 single-quarter net profit attributable to shareholders up 64.99% year on year already reflects sequential recovery.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest period is the 2026 half-year report (released around 2026-08-30). 2026H1 non-recurring net profit attributable to shareholders was RMB 18 million, down 73.50% year on year; gross margin 26.98%, down 2.72 pct year on year; net margin 4.75%, down 2.12 pct year on year. For the single quarter 2026Q2, revenue was RMB 810 million (up 17.16% year on year, up 22.16% quarter on quarter), and net profit attributable to shareholders was RMB 63 million (up 64.99% year on year, up 1194.37% quarter on quarter). The large divergence between net profit attributable to shareholders and non-recurring net profit was explained by the company as due to asset disposal gains formed by the electronic bulk carrier gas finance lease business. In the 2025 annual report, non-recurring net profit attributable to shareholders was RMB 118 million (RMB 117,593,050), down 24.43% year on year; total profit was RMB 177 million, down 33.52% year on year; sales gross margin was 29.71%, down 2.44 pct year on year (another source said a decline of 2.45 percentage points); sales net margin was 5.40%; it planned to distribute RMB 2.5 per 10 shares (tax included), totaling approximately RMB 119 million, accounting for 90.42% of net profit attributable to shareholders. In the 2026 Q1 report, non-recurring net profit attributable to shareholders was RMB 2.2261 million, down 92.39% year on year. Historical base: 2024 revenue of RMB 2.525 billion (+4.03%), net profit attributable to shareholders RMB 201 million (-36.12%/-36.29% on a flash-report basis), non-recurring net profit RMB 158 million (-45%), gross margin 32.15%; 2023 revenue of RMB 2.427 billion, net profit attributable to shareholders RMB 315 million; 2022 revenue of RMB 1.967 billion, net profit attributable to shareholders RMB 229 million.

In 2025, revenue grew steadily (+9.95%) but net profit attributable to shareholders fell 34.44% year on year, and gross margin declined about 2.44 percentage points year on year, with profitability under pressure. In terms of business structure, for full-year 2025 bulk gas accounted for approximately 44.2% (RMB 1.173 billion, +20.57%), specialty gas approximately 32%-33.6% (RMB 891 million, -7.42% year on year), on-site gas supply and rental approximately 13.5% (RMB 357 million, +28.57%), and gas approximately 8.7%. In the 2026 Q1 report, net profit attributable to shareholders was only RMB 4.8691 million, down 88.93% year on year, and non-recurring net profit was down 92.39% year on year, with results under heavy pressure. 2026H1 revenue continued to grow (+12.12%), net profit attributable to shareholders fell 17.41% year on year, but non-recurring net profit fell 73.50% year on year, mainly due to non-recurring asset disposal gains; by business, bulk gas was RMB 617 million (+13.00%), specialty gas RMB 505 million (+21.35%), and on-site gas supply and rental RMB 198 million (+16.11%), with corresponding gross margins of 24.34% (down 5.58 pct), 21.59% (up 0.63 pct), and 52.67% (down 5.11 pct), while integrated circuit industry revenue rose 29.56% year on year. 2026Q2 single-quarter performance improved significantly quarter on quarter (net profit attributable to shareholders up 1194.37% quarter on quarter). Overall, the company's revenue is resilient but its profit margin remains in a downward channel, and the divergence between net profit attributable to shareholders and non-recurring net profit is obvious, so the assessment of core-business profitability should focus on the non-recurring basis.

3.2 Profit Forecasts

Data sources: Tonghuashun iFinD aggregation (as of 2026-08-26, 8 institutions in the past 6 months), Kaiyuan Securities (2026-08-30 and 2026-04-02), Ping An Securities (2026-08-26), Guotai Haitong Securities (2026-06-01), Huayuan Securities (2026-07-10), China Merchants Securities (2026-07-16), Guosen Securities (2026-03-30). Overseas / third-party consensus: stockanalysis.com (citing S&P Global, only 3 analysts) gives FY2026 revenue forecast of RMB 3.66 billion (+31.85%), EPS RMB 1.04, consensus rating "Strong Buy," average target price RMB 38.66 (range RMB 24.32-53.00); this basis for revenue and EPS is significantly higher than all Chinese brokerage forecasts (RMB 177-226 million), the sample is only 3 and may include stale or inconsistent data, so it is not adopted as a reliable consensus and is for reference only. Most sources did not provide revenue and EPS forecasts, and the relevant fields are truthfully marked as data missing.

3.3 Valuation Levels and Institutional Ratings

Reference PE (research report basis): Kaiyuan Securities on 2026-08-30 said it corresponded to 2026-2028 PE of 84.0/60.3/51.4x; Kaiyuan Securities on 2026-04-02 said it corresponded to 2026-2028 PE of 61.4/50.5/40.6x; Ping An Securities (2025-08-25), based on the closing price of 2025-08-22 at that time, gave 2025-2027 PE of 37.5/27.4/23.9x. Historical valuation points: at the time of the 2024 annual report flash (closing on 2025-02-27), PE(TTM) was approximately 44.17x, PB(LF) approximately 3.01x, and PS(TTM) approximately 3.54x (disclosed by China Securities Journal). Financial quality: ROE was 6.57% in 2024 and fell to approximately 4.26% in 2025 (third-party ratio page), both in a downward channel. Share price / market value: according to Securities Times / laoyaoba, the share price was RMB 26.34 and market value RMB 14.127 billion (an earlier point in time, and corresponding to H1 results); the Sina Finance page showed Jinhong Gas at RMB 35.13 (-7.26%), and the specific date was not clear in the captured excerpt; the two belong to different points in time and different sources. Since this round did not obtain precise point-in-time data such as the latest trading day's closing price, total market value, and PE(TTM), price-related valuation multiples should be verified based on the company's announcement date or market terminals. Uncertainties requiring special note: 1) Target price bases diverge widely, with the Tonghuashun iFinD aggregate average of RMB 29.25 vs. stockanalysis (S&P Global) at RMB 38.66; the latter's forecast net profit/EPS is significantly higher and the sample is only 3, so the two cannot be directly compared; 2) The downward revision trend is obvious: the 2026 net profit forecast fell from RMB 208-282 million at the beginning of the year to RMB 177 million by Kaiyuan in August and RMB 190 million by China Merchants, and institutional consensus is continuously moving down, so "as of 2026-08-30" must be noted when using it; 3) Net profit attributable to shareholders diverges from non-recurring net profit: 2026H1 net profit attributable to shareholders was RMB 68 million but non-recurring net profit was only RMB 18 million, with the difference coming from asset disposal / finance lease gains, which are non-recurring, so core-business profitability should be assessed on the non-recurring basis; 4) Share capital basis: convertible bond conversion caused total share capital to float from 482 million shares to more than 500 million shares (some third parties show approximately 502 million shares), and the denominator for diluted EPS/PE needs to be unified; 5) The price and valuation point in time could not be locked to the latest trading day's precise closing price and market value; 6) stockanalysis's FY2026 revenue +31.85% and EPS RMB 1.04 are from a single source and have not been cross-verified by Chinese brokerages, so they are not adopted for now.

4. Recent News and Announcements

4.1 Disclosure of the 2026 Half-Year Report

Jinhong Gas (688106.SH) disclosed its 2026 half-year report on the evening of 2026-08-25 (published on 08-26). Operating revenue was RMB 1.4732 billion, up 12.12% year on year; net profit attributable to shareholders was RMB 67.8934 million, down 17.41% year on year; non-recurring net profit attributable to shareholders was RMB 17.8197 million, down 73.50% year on year; net operating cash flow was RMB 214.7 million, up 19.25% year on year; total assets were RMB 8.256 billion (up 6.14% from the end of the previous year); net assets attributable to shareholders were RMB 3.984 billion (+27.20%); weighted ROE 1.87%; basic EPS RMB 0.13 (-23.53%); R&D investment accounted for 3.60% of revenue (4.23% in the same period last year). There was no profit distribution / capitalization proposal for this period. Structural breakdown (Everbright Securities 2026-08-27 half-year report review): bulk gas revenue RMB 617 million (+13.0%, gross margin 24.3%, down 5.6 pct); specialty gas RMB 505 million (+21.4%, gross margin 21.6%, up 0.6 pct); on-site gas supply and rental RMB 198 million (+16.1%, gross margin 52.7%, down 5.1 pct). Integrated circuit industry revenue rose 29.56% year on year; helium revenue rose 141% year on year, of which 26Q2 rose 110% quarter on quarter. 26H1 recognized approximately RMB 39.53 million in gains from disposal of non-current assets (asset disposal gains/losses formed by the electronic bulk carrier gas project under a finance lease model), and government subsidies of RMB 15.0438 million. 26Q2 single quarter: revenue RMB 810 million (up 17.16% year on year, up 22.16% quarter on quarter); net profit attributable to shareholders approximately RMB 63.02 million (up 64.99% year on year, up approximately 1194% quarter on quarter), with the company describing it as "the second-quarter inflection point emerging." Reasons for the divergence between net profit attributable to shareholders and non-recurring net profit (company basis): concentrated transfer to fixed assets of new projects and a marked increase in depreciation expenses dragged down gross margin; combined with large non-recurring disposal gains.

4.2 2025 Annual Performance Flash Report (Announcement No. 2026-004)

Disclosed on 2026-02-28 (Shanghai Securities News). Operating revenue was RMB 2.780 billion (RMB 2,780,045,500), up 10.09% year on year; net profit attributable to shareholders was RMB 122.58 million, down 39.08% year on year; operating profit was RMB 166.4 million (-37.49%); total profit was RMB 168.6 million (-36.65%); basic EPS RMB 0.26 (-38.10%); total assets RMB 7.811 billion (+15.43%); equity attributable to shareholders RMB 3.123 billion (+1.94%). The company attributed this to intensified market competition leading to declines in selling prices and comprehensive gross margin of some products, increased depreciation after completion of projects laid out counter-cyclically in earlier periods, and a year-on-year decrease in asset disposal gains. The flash report data were unaudited.

4.3 2025 Annual Report and Profit Distribution Proposal

Disclosed on 2026-03-28, with Xinyong Zhonghe as the auditor and a standard unqualified opinion. The 2025 profit distribution proposal was a cash dividend of RMB 2.50 per 10 shares (tax included), based on total share capital of 481,977,757 shares less 4,829,996 shares in the repurchase special securities account, for a total proposed distribution of RMB 119,286,940.25; cash dividends accounted for 90.42% of net profit attributable to shareholders for the year; no capital reserve capitalization. The annual report also noted that "the parent company has unrecovered losses." Note: this search found no "performance forecast" released in mid-2026 (STAR Market half-year reports are generally not mandatory), only the above flash report / formal report; no information related to the 2026 third-quarter report was found (not yet disclosed as of the search date).

4.4 Grant and Registration Completion of the 2026 Restricted Stock Incentive Plan

2026-07-16: The 20th meeting of the sixth board of directors reviewed and approved the proposal to grant restricted stock to incentive recipients under the 2026 restricted stock incentive plan, with a grant date of 2026-07-16, a price of RMB 23 per share, and a grant of 5.8801 million shares to 191 incentive recipients (pursuant to the authorization of the first extraordinary shareholders' meeting of 2026). On 2026-08-06, the grant registration was completed (announcement 2026-08-07): 5.771 million shares were actually granted, the number of incentive recipients was 186, the grant price was RMB 23 per share, and the stock source was "repurchased shares + issued shares"; the maximum valid period was no more than 36 months, with lock-up periods of 12 months / 24 months and unlock ratios of 50% each; the company had received subscription payments of approximately RMB 133 million to supplement working capital; after the grant, total share capital increased to 536 million shares, and the shareholding ratio of the actual controller and persons acting in concert was passively diluted to 36.99%. Uncertainty: the incentive price was set at the "company level," and the extent of the discount to the secondary-market share price could not be fully verified (the original announcement text was not obtained).

4.5 Use of Temporarily Idle Convertible Bond Raised Funds for Cash Management

Announcement on 2026-08-07: without affecting the fundraising investment plan, it planned to use no more than RMB 230 million of temporarily idle convertible bond raised funds for cash management, within 12 months from the expiry date of the previous authorization on 2026-08-14, and the quota may be used on a rolling basis.

4.6 Inconsistent Repurchase Share Figures (Need to Be Noted)

Shanghai Stock Exchange e-interaction Q&A (reply on 2026-06-24): "As of May 31, 2026, the company had cumulatively repurchased 39,300 shares through the repurchase special securities account by way of centralized bidding, accounting for 0.01% of the company's existing total share capital, with a highest transaction price of RMB 29.27 per share and a lowest transaction price of RMB 28.89 per share, and total payment of RMB 1,139,791 (excluding transaction fees)." 2025 annual report basis: as of 2025-12-31, the repurchase special securities account held 4,829,996 shares (used to deduct the dividend base). Cross-verification note: the above 39,300 shares (0.01%) and the 4,829,996 shares in the repurchase special account at the end of 2025 clearly do not belong to the same basis and cannot be simply added or compared; combined with the 2026-08 equity incentive "stock source being repurchased shares and issued shares" (5.771 million shares ≈ 4,829,996 shares + approximately 940,000 newly issued shares), it can be inferred that the treasury shares at the end of 2025 were used for the incentive plan in August 2026, while the 39,300 shares may be another / a new small-scale repurchase. This inference has not been directly confirmed by the original announcement text and is an item requiring further verification. Investors asked about repurchases multiple times in 2026 (2026-05-22, 2026-08-03, 2026-08-24, etc.), and the company's reply basis was consistent: "If there is a repurchase (or increase) plan in the future, we will strictly follow information disclosure rules and timely fulfill disclosure obligations" — that is, as of the search date, no announcement of a new large-scale repurchase plan in 2026 had been seen.

4.7 Announcement on Abnormal Stock Trading Fluctuations and Risk Warning (Announcement No. 2026-049)

Disclosed on 2026-07-02: the company's stock closing price deviation for three consecutive trading days (2026-06-29, 06-30, 07-01) cumulatively reached 30%, constituting abnormal stock trading fluctuations; the board of directors confirmed that there were no major matters or planning intentions that should be disclosed but had not been disclosed. Note: this late-June surge coexisted with investors complaining in the August 2026 e-interaction that "the stock price significantly underperformed the broader market and the semiconductor specialty gas sector," indicating that the stock price experienced an obvious pullback during the period; the relevant interval price changes and fund flows were not verified in this search (they fall within the technical-analysis scope).

4.8 Change and Completion of Fundraising Investment Projects and Convertible Bond Repurchase Matters

The second extraordinary shareholders' meeting of 2025 (notice 2025-11-08, meeting/resolution 2025-11-24/25) reviewed the "Proposal on Changing the Investment Scale of Fundraising Investment Projects and Completing Them and Using Surplus Raised Funds to Lend to a Controlled Grandsubsidiary to Implement a Project Under Construction" and the "Proposal on Changing Registered Capital, Amending the Articles of Association and Handling Industrial and Commercial Change Registration." Soochow Securities (sponsor institution) issued on 2025-11-26 the "Verification Opinions on Matters Relating to the Repurchase of Jinhong Gas Convertible Corporate Bonds" — indicating that the "Jinhong Convertible Bond" (118038) underwent a repurchase matter in November 2025 (the repurchase scale/result was not obtained in this search). On 2025-11-08, Soochow Securities also issued verification opinions on "changing the investment scale of fundraising investment projects and completing them and adding new fundraising investment projects" and "providing guarantees for controlled subsidiaries."

4.9 Cancellation of Certain Special Accounts for Raised Funds (Announcement 2026-063)

Announcements on 2026-09-03/04: because the funds in the fundraising special accounts at Industrial and Commercial Bank of China Suzhou Xiangcheng Branch (1102265529000074522) and China Merchants Bank Suzhou Branch (512913680710808) had been fully used, the accounts were cancelled and the supervision agreements terminated.

4.10 Participation in the STAR Market 2026 Half-Year Collective Performance Briefing for the Semiconductor Manufacturing, Equipment and Materials Industry (Announcement 2026-062)

Announcement on 2026-09-02: the company would participate in the Shanghai Stock Exchange STAR Market 2026 half-year collective performance briefing for the semiconductor manufacturing, equipment and materials industry (2026-09-10 15:00-17:00, SSE Roadshow Center); participants were Chairman Jin Xianghua, Board Secretary Chen Ying, Deputy General Manager and Chief Financial Officer Zong Weizhong, and Independent Director Chen Zhong.

4.11 Disclosure of Investor Relations Activity Records

Activity record forms were disclosed on 2026-01-19 (No. 2026-001), 2025-12-16 (12/12 activity), 2025-11-25 (11/20-21), 2025-11-14, 2025-11-06, 2025-11-03, etc.

4.12 Completion of Trial Production of the Electronic-Grade Dichlorosilane Project

Electronic-grade dichlorosilane (a planned product of the convertible bond fundraising project "New High-End Electronic Specialty Materials Project") has successfully completed trial production, with an annual capacity of 200 tonnes, and is advancing semiconductor customer testing, certification and introduction (2026-09-10 interactive platform).

4.13 Progress of the Xinjiang Aral BOG Helium Extraction Project

The Xinjiang Aral BOG helium extraction project is orderly carrying out equipment installation and commissioning and is expected to enter trial production in the second half of 2026 (consistent replies on 2026-09-10 and 2026-08-24).

4.14 Clarification of Speculation Relating to Yunnan Hanxing Defang Gas Technology Co., Ltd.

2026-09-10 interaction: Yunnan Hanxing Defang Gas Technology Co., Ltd. is a subsidiary of Jinhong Jiemeng Gas (Shanghai) Co., Ltd., which the company acquired earlier, and currently has not yet carried out actual operating activities (clarifying market speculation about its "tungsten hexafluoride capacity").

4.15 M&A, Joint Ventures and Project Progress Disclosed in the Half-Year Report

Completed the acquisition and integration of "Shanghai Zemu" to strengthen the bulk gas layout in East China; the Singapore Jinhong (formerly CHEM-GAS) platform continued to ramp up; established the joint venture "Jinhong Puhua" to build an overseas helium supply chain; electronic bulk carrier gas / on-site gas supply projects (Yingkou Jianfa air separation and Shandong Ruilin polymer air separation are expected to successively commence production in 2026Q4, and the Spain new energy materials on-site gas supply project is advancing). Customer cooperation progress: stable mass-production supply of supercritical CO2 to Wuxi Hynix and direct mass-production supply of high-purity nitrous oxide to Dalian Hynix; deepened cooperation with SMIC, ChangXin Memory and Hynix; electronic bulk carrier gas projects such as Xincheng Hanqi Semiconductor, Zhejiang Laibao Display and Shanwei Truly entered stable operation / capacity release (half-year report and brokerage review basis).

4.16 Shareholder and Governance Dynamics (Verifiable Part)

Total share capital: 481,977,757 shares as of 2025-12-31; increased to approximately 536 million shares after registration of the 2026-08 equity incentive; the shareholding ratio of the actual controller and persons acting in concert was passively diluted to 36.99%. Pledge: third-party data (Lixinger, page last updated 2026-02-10) showed "pledged shares to top ten shareholders' shareholding ratio 0%," i.e., no major shareholder pledge was seen during the reporting period; the same page showed total shareholder accounts of approximately 20,700, Stock Connect holdings accounting for 0.97% of tradable A shares (RMB 91.6091 million, 2025-12-31), and margin financing and securities lending balance accounting for 4.63% of tradable market value (financing balance RMB 543 million, securities lending balance RMB 2.6962 million, 2026-03-09). Unverified items: this search was unable to find clear 2026 controlling shareholder / director (the memo original text is truncated here, and subsequent content is missing).

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

The research memo only confirmed the identity of Jinhong Gas (688106.SH), a data date of approximately 2026-09-11, and two market data points: up 0.55% this week and a weekly net inflow of RMB 57.2794 million from main-force funds; it also provided industry sector performance (the helium sector fell 0.59% on September 10, the industrial gas sector fell 0.8%, and the nuclear fusion sector fell 1.24%) and company fundamental events (completion of trial production of electronic-grade dichlorosilane, progress in introducing semiconductor customers, and 2026 interim net profit of RMB 67.8934 million, down 17.41% year on year). However, the research memo lacks a complete closing price series, trading volume/turnover, turnover rate, moving averages, Bollinger Bands, MACD, RSI and other key technical indicator data, as well as 52-week highs and lows, recent swing highs and lows, and shareholder structure data. Therefore, it is impossible to construct a complete technical judgment and a precise table of key technical levels. The following content will strictly be based on the data already available in the research memo, and missing items will be truthfully explained.

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 limited data in the research memo (data date approximately 2026-09-11) and historical prices and technical indicator calculations. It does not constitute investment advice, nor does it constitute a guarantee of actual future trends.

① Key Technical Levels

② Next-Week Scenarios (Subjective Weighting, Not Statistical Probability)

• Range-bound consolidation (medium weight (subjective judgment, based on the current technical/fund setup, not statistical probability)): The research memo shows the share price rose slightly by 0.55% this week and main-force funds had a weekly net inflow of RMB 57.2794 million, so a range-bound pattern may persist in the short term. However, due to the lack of specific volume-price, moving-average, and Bollinger Band data, a clear consolidation range and trigger conditions cannot be given. Further observation is needed in light of subsequent volume expansion and sector performance.
• Weaker downside (medium weight (subjective judgment, based on the current technical/fund setup, not statistical probability)): The research memo mentions that the industrial gas sector fell 0.8% on September 10, the helium sector fell 0.59%, and the nuclear fusion sector fell 1.24%, with the sectors overall weak; combined with the company's 2026 interim net profit falling 17.41% year on year, if sector weakness continues or funds turn to net outflow, the share price may come under pressure. However, because key technical support level data are missing, a specific downside target range and clear breakdown trigger conditions cannot be given.
• Rebound and strengthening (medium weight (subjective judgment, based on the current technical/fund setup, not statistical probability)): The research memo mentions positive fundamental factors such as the successful completion of trial production of electronic-grade dichlorosilane and accelerated introduction of specialty gas to semiconductor customers, and main-force funds showed a net inflow this week; if related catalysts continue and sector sentiment recovers, the share price may rebound and strengthen. However, because specific resistance levels and volume data are missing, a clear rebound target range and volume confirmation conditions cannot be given.

③ Funds and Liquidity Background

The research memo did not provide liquidity data such as turnover rate or daily turnover range, so an effective assessment of Jinhong Gas's funds and liquidity background cannot be made. Regarding shareholder structure, the research memo source links include a list of tradable shareholders (marked date March 31, 2026), a shareholder list (marked date April 29, 2026), and a top ten shareholders information page, but the memo body did not extract any specific shareholder concentration data, nor did it indicate whether the top ten shareholders include mainstream institutions such as public funds, social security, or QFII, or only controlling family / PE-type shareholders. Given that shareholder data usually have a disclosure lag of more than one quarter, and the research memo did not provide specific data, the structure may have changed since the above marked dates, and the actual impact of the current shareholder structure on liquidity cannot be judged on this basis. In addition, the research memo did not provide any quantitative information on order book depth, slippage, or small-cap liquidity risk. It is recommended to evaluate again after obtaining turnover rate, turnover amount, and the latest top ten shareholder details.

The research memo did not provide the stock's recent average daily turnover amount and turnover rate data, so an effective volume confirmation threshold cannot be calibrated; it is recommended to first obtain the average daily turnover amount of the past 20 trading days as a benchmark, and then set a specific standard that "a sustained expansion in single-day turnover to more than X times the benchmark is regarded as a signal of fund entry."

④ Points to Watch (Observation Ideas Only, Not Trading Instructions)

• Watch whether volume-expanded bullish candles or bearish candles subsequently appear, to judge whether the weekly net inflow of RMB 57.2794 million from main-force funds is sustainable (observation idea, not a trading instruction)
• Watch the trends of related sectors such as industrial gas, helium, and nuclear fusion; the research memo shows these sectors have recently been weak, and if sector sentiment recovers it may boost the stock (observation idea, not a trading instruction)
• Watch the follow-up implementation of fundamental catalysts such as progress in trial production of electronic-grade dichlorosilane and the introduction of semiconductor customers (observation idea, not a trading instruction)
• Watch whether subsequent quarterly results show signs of improvement after the 2026 interim net profit fell 17.41% year on year (observation idea, not a trading instruction)

The above scenario deductions are based on the approximately 2026-09-11 closing data in the research memo and historical price and technical indicator calculations, but the research memo lacks key data such as a complete price series, trading volume, turnover rate, moving averages, Bollinger Bands, MACD, RSI and shareholder structure, so some scenarios and key levels cannot be given precise ranges. Short-term share prices will also be disturbed by multiple factors such as news, funds, and the broader market environment. Technical indicators themselves have lag and limitations, do not constitute a guarantee of actual future trends, and do not constitute buy or sell advice. Please make independent judgments in light of the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

The industrial gas industry is a capital-intensive "manufacturing + service" hybrid with a limited regional service radius, and the industry landscape is characterized by "long-term contracts / annual price reduction negotiations between gas suppliers and manufacturing customers." Jinhong Gas is positioned as an environmentally friendly, intensive and comprehensive gas service provider, providing specialty gas, bulk gas and natural gas in three major categories and more than 100 gas varieties, and adhering to the "vertical and horizontal development strategy: vertical development, horizontal layout." The industry is currently in a stage where the price cycle and front-loaded depreciation overlap: the 2025 comprehensive gross margin was 29.7% (down 3.4 pct), and in 2026H1 it further fell to 26.98% (down 2.72 pct), but the structural bright spots lie in the helium ramp-up (26H1 revenue up 140.53% year on year) and the rebound in specialty gas gross margin (up 0.63 pct).

6.2 Competitive Landscape

• Industry attributes: industrial gas is a capital-intensive industry, and the substantive cost of air separation gas production is electricity and equipment depreciation. The company itself stated that "the gas industry has capital-intensive characteristics, which determines that capital demand is relatively large" (January 2026 survey record).
• Competitive landscape: in 2025, the company's specialty gas gross margin fell 4.29 pct to 23.40%, mainly because the photovoltaic chain's "price war" dragged down ultra-high-purity ammonia and high-purity hydrogen; bulk gas gross margin fell 1.79 pct to 29.47%, reflecting intensified industry competition and declines in selling prices and gross margins of some products.
• Electronic bulk carrier gas / on-site gas supply are long-term gas supply contracts of 10–15 years, with stable revenue but price terms usually including gradual price reductions; the logic is similar to the "annual price reduction" in auto parts, but the contract period is longer and switching costs are higher.
• Helium is a strategically scarce resource. The company has built a dual-drive safeguard system of "overseas direct sourcing + domestic self-production." Overseas direct sourcing is affected by international helium supply-demand and geopolitical disruptions (the title of the China Merchants Securities 2026-03-29 research report mentioned that "Middle East conflict may boost helium price increases").
• Downstream structure changes: pan-semiconductor industry revenue accounted for 31% (of which integrated circuits accounted for 13%, up 30% year on year), and the photovoltaic industry revenue share rapidly declined to approximately 4% (first three quarters of 2025); in 2023Q1 pan-semiconductors accounted for 26%, an upward trend.
• Differences in industry classification basis: Baidu Finance shows "Electronic Chemicals II"; Huaxin F10 shows "Petroleum, Chemicals, Plastics and Rubber"; this is a third-party classification difference, and the source basis must be noted when citing.

6.3 Main Competitors

The research memo did not provide specific financial data or market share information of comparable companies in the same industry, so a quantitative horizontal comparison cannot be made. From the available qualitative information: Jinhong Gas's differentiated positioning lies in its comprehensive gas service capability under the "vertical and horizontal development strategy" (three major categories and more than 100 varieties), as well as the revenue stability brought by the long-term agreement model of electronic bulk carrier gas / on-site gas supply (10–15 year contract period), with the on-site gas supply segment gross margin of 52.67% significantly higher than bulk gas at 24.34%. However, the common industry pressure it faces is the downturn in the price cycle and depreciation pressure brought by the transfer to fixed assets of earlier capital expenditure — in 2025 net profit attributable to shareholders fell 34.44% year on year, and in 2026H1 non-recurring net profit fell 73.50% year on year (mainly due to increased depreciation and declines in product selling prices / gross margins), while 2026Q2 single-quarter net profit attributable to shareholders rose 64.99% year on year, reflecting sequential recovery. Brokerages consensus that profit pressure is the dual result of "price cycle + front-loaded depreciation," not a demand collapse. Quantitative comparison data for comparable companies in the same industry are missing and marked as an information gap; it is recommended to supplement the financial data of listed companies in the same industry (such as Huate Gas, Heyuan Gas, etc.) to improve the comparative analysis.

7. Risk Warnings

• Risk of declining core-business profitability: in the first half of 2026, non-recurring net profit attributable to shareholders was only RMB 17.8197 million, down 73.50% year on year, and the difference between net profit attributable to shareholders and non-recurring net profit mainly came from approximately RMB 39.53 million in asset disposal gains; if non-recurring gains decrease, core-business profit may continue to come under pressure.
• Risk of declining product prices and gross margins: in the first half of 2026, bulk gas gross margin fell to 24.34%, down 5.58 percentage points year on year; although specialty gas gross margin rebounded to 21.59%, it was still below the 2025 level, and the company had previously also been affected by price competition in the photovoltaic chain and pressure on selling prices of ultra-high-purity ammonia and high-purity hydrogen.
• Risk related to depreciation and returns on capital expenditure: earlier counter-cyclical projects were successively transferred to fixed assets, causing a marked increase in depreciation expenses and dragging down gross margin; if capacity utilization or customer introduction after the commissioning of projects such as electronic bulk carrier gas, on-site gas supply, and Xinjiang helium extraction falls short of expectations, there may be a situation where depreciation comes first and profit release lags.
• Risk of helium supply and price fluctuations: the company adopts a parallel model of overseas direct sourcing and domestic self-production for helium; overseas direct sourcing still leaves it a price taker on the resource side and vulnerable to international helium supply-demand and geopolitical factors; the Xinjiang Aral BOG helium extraction project is still at the equipment installation and commissioning stage and is expected to enter trial production in the second half of 2026, with uncertainty in actual commissioning and profit contribution.
• Risk of customer certification for electronic specialty gas: although electronic-grade dichlorosilane has completed trial production and has an annual capacity of 200 tonnes, it is still advancing semiconductor customer testing, certification and introduction; if the certification cycle is extended or customer introduction falls short of expectations, the new capacity may not be converted into revenue and profit in a timely manner.
• Risk of price reductions under long-term contracts: electronic bulk carrier gas and on-site gas supply projects usually adopt 10- to 15-year long-term gas supply contracts, which help stabilize revenue and improve customer stickiness, but contract prices usually include gradual price reduction clauses, which may limit revenue growth and gross margin improvement.
• Risk of performance volatility and forecast downgrades: in the first quarter of 2026, net profit attributable to shareholders fell 88.93% year on year; although the second quarter recovered markedly year on year, the performance of net profit attributable to shareholders and non-recurring net profit diverged; at the same time, institutional forecasts for 2026 net profit have been lowered from the beginning of the year to approximately RMB 177 million to RMB 226 million, and may still be adjusted subsequently due to project depreciation, price competition or demand changes.
• Risk of share capital dilution and valuation basis: after registration of the 2026 restricted stock incentive, total share capital increased to approximately 536 million shares, and the shareholding ratio of the actual controller and persons acting in concert was passively diluted to 36.99%; at the same time, there are basis differences among convertible bond conversion, incentive shares and total share capital data from different sources, which may affect EPS and PE comparisons.
• Technical and market volatility risk: recent materials only show that the share price rose 0.55% for the week and main-force funds had a weekly net inflow of RMB 57.2794 million, lacking a complete price series, trading volume, turnover rate and moving-average indicators; the company previously experienced abnormal fluctuations with a cumulative three-trading-day gain deviation of 30%, and short-term prices may fluctuate significantly due to funds, sector sentiment and news catalysts.

8. Conclusion and Outlook

Jinhong Gas's growth logic lies in semiconductor and integrated circuit customer expansion, the landing of long-term agreement projects for electronic bulk carrier gas and on-site gas supply, the structural upgrading of specialty gas, and the ramp-up of the helium business. The relatively high gross margin of on-site gas supply and the rapid growth of helium revenue provide direction for future profit structure improvement; if electronic-grade dichlorosilane and the Xinjiang helium extraction project successfully complete certification, commence production and generate stable revenue, they may further enhance the growth potential of the specialty gas and scarce gas businesses.

However, the company is currently still in a stage where revenue growth coexists with declining profit margins. In the first half of 2026, non-recurring net profit attributable to shareholders fell 73.50% year on year, and the gross margins of bulk gas and on-site gas supply both declined year on year, while the depreciation pressure formed by earlier capital expenditure has not yet been fully absorbed. The marked rebound in second-quarter 2026 net profit attributable to shareholders was partly affected by non-recurring asset disposal gains and cannot be directly equated with a comprehensive recovery in core-business profitability.

Follow-up focus should include whether specialty gas prices and gross margins can stabilize, capacity utilization and project returns after increased depreciation, whether the helium and electronic-grade dichlorosilane projects can complete customer introduction, and whether non-recurring profit continues to improve. Institutional forecasts for 2026 net profit attributable to shareholders are approximately RMB 177 million to RMB 226 million, but forecasts have been downgraded from the beginning of the year, and current valuation and share price data differ in timing, share capital and basis, so relevant judgments need to be dynamically assessed in light of subsequent formal financial reports and the latest market data.

Data Sources

• Jinhong Gas: Investor Relations Activity Record Form January 16, 2026 _ Jinhong Gas (688106) _ Announcement Text - Jinhong Gas: Investor Relations Activity Record Form January 16, 2026 View PDF Original
• Jinhong Gas: Investor Relations Activity Record Form January 16, 2026_Jiufang Zhitou
• Jinhong Gas Co., Ltd. Investor Relations Activity Record Form
• Jinhong Gas (688106)_Stock Overview_Stock Price_Real-time Quotes_Trend Chart_News_Stock Reviews_Earnings_FinScope-AI Makes Investing Simpler
• Chinese Stock Survey Activity Table - Jinhong Gas Co., Ltd. - October 31, 2024 - Tonghuashun
• Jinhong Gas Listed Company Information
• Jinhong Gas Achieves Steady Growth in the First Half of 2025; Domestic Substitution of Electronic Specialty Gas and Regional Expansion Build a Solid Foundation for Growth - Jinhong Gas Achieves Steady Growth in the First Half of 2025; Domestic Substitution of Electronic Specialty Gas and Regional Expansion Build a Solid Foundation for Growth
• Chinese Stock Survey Activity Table - Jinhong Gas Co., Ltd. - July 17, 2023 - Tonghuashun
• Jinhong Gas (688106): Specialty Gas Accelerates Introduction to Semiconductor Customers; Bulk Gas and On-Site Gas Supply Maintain Growth_Jiufang Zhitou
• Jinhong Gas: Subsidiary Has Not Yet Carried Out Actual Operating Activities
• Jinhong Gas Co., Ltd. Announcement on Abnormal Stock Trading Fluctuations and Risk Warning - July 02, 2026 Electronic Edition
• China Securities Journal - Jinhong Gas Co., Ltd.<BR/>Announcement on Abnormal Stock Trading Fluctuations and Risk Warning - | Page B066: Information Disclosure | Previous Next
• Chinese Stock Survey Activity Table - Jinhong Gas Co., Ltd. - January 22, 2026 - Tonghuashun
• Jinhong Gas: Electronic-Grade Dichlorosilane Has Completed Trial Production, Annual Capacity 200 Tonnes
• Chinese Stock Survey Activity Table - Suzhou Jinhong Gas Co., Ltd. - September 8, 2021 - Tonghuashun
• China Securities Journal - Jinhong Gas Co., Ltd. - | Page B170: Information Disclosure | Previous Next
• Suzhou Jinhong Gas Co., Ltd. Announcement on the Results of the Initial Public Offering and Listing on the STAR Market - Article Search