Luhua Technology Posts First-Half Net Profit of 45.89 Million Yuan on Debt Restructuring Gains

Luhua Technology (600691) reported first-half 2026 revenue of 4.711 billion yuan, down 8.16% year on year, and net profit attributable to shareholders of 45.8918 million yuan, compared with a loss of 229 million yuan a year earlier, according to Jiemian News. The company said its pretax profit was 6.5751 million yuan, versus a loss of 249 million yuan in the same period last year, while net profit excluding non-recurring items remained a loss of 91.5885 million yuan, though the loss narrowed from 239 million yuan. The turnaround was driven largely by non-recurring gains of 137 million yuan, including 155 million yuan from debt restructuring and 20.2654 million yuan in government subsidies. Operating pressure remained evident: cost of revenue fell 7.26% to 4.544 billion yuan, slower than the decline in revenue, and gross margin slipped to about 3.55% from 4.49%. By segment, fertilizer revenue was 1.323 billion yuan with an 8.26% gross margin, equipment manufacturing revenue was 1.049 billion yuan with an 11.47% gross margin, and chemical revenue was 1.915 billion yuan against costs of 2.003 billion yuan, leaving a negative gross margin of about 4.55%. Jiemian News reported that the company’s main subsidiary, Hengtong Chemical, posted a first-half net loss of 184 million yuan. Cash flow from operating activities was a net outflow of 16.3155 million yuan, improving from a net outflow of 148 million yuan a year earlier.