SENIOR MATERIAL (Shenzhen Senior Technology Material Co., Ltd.) reported strong interim results for the six months ended 30 June 2026, underpinned by surging overseas demand and an improved product mix.
Revenue climbed 39.90% year on year to RMB 2.63 billion, entirely generated from lithium-ion battery separator sales. Overseas turnover rose 233.2% to RMB 820.08 million, lifting the offshore contribution to 31.2% of total sales (1H25: 13.1%). Mainland China revenue advanced 10.8% to RMB 1.81 billion.
Gross profit expanded 70.7% to RMB 750.81 million, with the overall gross margin improving to 28.5% (1H25: 23.4%). Margin gains were driven by higher-priced export orders and an optimised sales mix. Overseas gross margin reached 37.2% (1H25: 33.5%), while the domestic margin improved to 24.6% (1H25: 21.9%).
Operating expenses grew in line with expansion. R&D spending increased 19.1% to RMB 150.75 million, and general and administrative costs rose 35.6% to RMB 244.31 million, reflecting higher staff and depreciation charges. Foreign-exchange losses of RMB 83.89 million pushed other losses to RMB 69.50 million, offsetting part of the gross-profit gain. Finance costs climbed 22.8% to RMB 126.59 million on higher borrowing levels.
Net profit attributable to shareholders rose 35.3% year on year to RMB 137.42 million, while total net profit reached RMB 164.26 million. Basic and diluted EPS both stood at RMB 0.10.
Cash generated from operations fell 27.1% to RMB 391.12 million, constrained by larger inventories and receivables. Net investing cash outflow narrowed to RMB 680.83 million as capital spending tapered with project progress. A HK$1.28 billion H-share global offering, completed on 23 June 2026, and higher borrowings lifted financing cash inflow to RMB 2.41 billion, boosting cash and equivalents to RMB 3.30 billion at period-end (31 December 2025: RMB 1.19 billion).
Total assets reached RMB 27.34 billion; gearing edged up to 59.3% (31 December 2025: 59.1%) as borrowings increased to RMB 13.54 billion, with short-term debt accounting for 45.0% of the total. Capital expenditure commitments stood at RMB 2.03 billion, mainly for overseas wet-process and coated-separator capacity in Malaysia and other growth projects.
The company maintained its technology leadership, holding 532 granted patents and investing in next-generation solid-state electrolyte membranes and piezoelectric ceramic components through strategic partnerships and acquisitions. Management emphasised further penetration of global battery-separator markets, continued capacity build-out, and utilisation of listing proceeds for R&D, overseas expansion, and semiconductor-materials investments.
No interim dividend was declared for 1H26. The board sees sustained demand from electric-vehicle and energy-storage sectors supporting long-term growth, while focusing on cost control, product innovation, and balance-sheet flexibility.