Leading chemical group net profit rises nearly 15% in H1

By Yan Wanqin.

Hubei Xingfa Chemicals Group Co., Ltd., a leading chemical company in Yichang, reported its net profit attributable to shareholders reached 836 million yuan (US$123.30 million) in the first half of 2026, up 14.97 percent year on year.

The Shanghai-listed company posted an operating revenue of 17.452 billion yuan for the period, marking a year on year increase of 19.37 percent, driven by progress on key investment projects and the launch of 13 new products.

The company's strategy of staggered project advancement has gained substantial traction across its industry chain. A number of major capital projects have been completed, further strengthening the company's core business foundation.

These include the renovation and expansion project with an annual production capacity of 100,000 tons of lithium dihydrogen phosphate, the 35,000 ton phosphorus-based flame-retardant project, the 75,000 tons thermal-process phosphoric acid project, and a yellow phosphorus relocation and upgrading project.

Several other projects are expected to be completed within the year, including the second phase of the 300,000-ton iron phosphate project, the 100,000-ton lithium iron phosphate project, and the 30,000-ton high-performance specialty silicone material project.

During the reporting period, Xingfa launched 13 new products, including high-selectivity phosphoric acid, insulator-grade silicone rubber, and high-purity D4 (Octamethylcyclotetrasiloxane). Several of the products can replace imported alternatives in the domestic market

Xingfa also continued to expand its research and development capabilities. It signed an agreement with Academician Yang Chao of the Institute of Process Engineering, Chinese Academy of Sciences, to establish a joint academician workstation. Pilot platforms in Yuan'an and Yidu are progressing smoothly, further refining the industry-university-research collaboration mechanism. The company also recruited 29 Ph.D. holders and 208 master's degree holders during the period, bringing its total on-board R&D staff to 970, of whom 75 hold doctoral degrees.

Xingfa is accelerating its strategic transformation toward high-end new materials and new energy industries. The company is advancing an integrated development model encompassing phosphorus, silicon, sulfur, salt, and fluorine chemicals, aiming to enhance its resource self-sufficiency and establish a new engine for growth through industry integration.

Lei Chuntao contributed to this story.