In the first half of 2026, Shenma Shares has focused on technological innovation, green and low‑carbon development, internal control, and quality‑driven efficiency gains, deploying multi‑pronged efforts to tackle key challenges and achieve breakthroughs across multiple fronts. As a result, the company has delivered tangible, phased results in all areas, with its operations and growth bucking the trend to post strong performance—reporting robust improvements in profitability, steady growth, and sustained momentum.

By steadfastly leveraging technology, the company has forged a competitive edge in its industry. Shenma Shares has consistently regarded technological innovation as the cornerstone for enhancing quality and efficiency, continuously ramping up R&D investment in core areas. In the first half of the year, R&D spending reached RMB 299.3458 million, accounting for 4.67% of total revenue, with a strong focus on breakthroughs in key technologies such as high-performance nylon materials and advanced polymerization processes. Notably, the project “Key Technologies for Continuous Melt Direct Spinning of High-Performance Polyamide 66 Industrial Filaments and Their Application in High-End Tires” was awarded the Second Prize of the National Science and Technology Progress Award, successfully overcoming longstanding technical bottlenecks in the industry. Furthermore, the caprolactam and aminocaproic acid projects have entered production, establishing a unique global dual‑technology pathway for critical raw materials and ensuring supply chain security and controllability. The company is accelerating the R&D of modified products such as flame-retardant nylon and high-temperature nylon, while iteratively upgrading its portfolio of high-end nylon 66 chips, industrial filaments, and tire cord fabrics. Significantly enhance product value-added and competitiveness.

Deeply committed to green and low-carbon development, we are expanding opportunities for sustainable growth. Shenma Shares will… Green development and low‑carbon transformation serve as the foundation for corporate sustainability, driving vigorous upgrades to green production processes and energy‑efficiency improvements. The company is accelerating efforts to elevate the environmental performance of its nylon operations—moving from “A‑level” compliance to “B‑level” excellence—while proactively developing cutting‑edge green products and core technologies, including bio‑based nylons, recycled nylons, and high‑value utilization of carbon dioxide. By fostering collaborative innovation across the upstream and downstream value chain, the company is vigorously promoting advanced green technologies such as low‑carbon catalysis, waste‑heat and waste‑pressure recovery, and zero‑carbon process substitution. Through technological upgrades, it continues to reduce per‑unit emissions at every stage of production, while simultaneously establishing end‑to‑end carbon‑footprint management. This comprehensive approach—spanning product R&D, manufacturing, and circular‑economy applications—ensures a deep, enterprise‑wide transition toward green and low‑carbon operations. Strengthen integrated management and enhance the quality and efficiency of corporate operations. Shenma Shares has bolstered industrial synergy across its nylon‑related production units, breaking down silos in procurement, manufacturing, and management. The company has refined its internal transaction‑settlement mechanisms to improve communication between upstream and downstream production entities; implemented meticulous inventory management, exercised prudent and rational procurement control, and rigorously curbed material overstocking and losses; adhered to a sales‑driven, demand‑based production schedule, precisely aligning output with market needs, effectively reducing production inventories, and comprehensively elevating overall operational performance. Meanwhile, the company has launched targeted initiatives—such as “Everyone Is a Salesperson: What Can I Do to Boost Sales?,” “Embrace the ‘Four Iron’ Spirit and Avoid Becoming a ‘Four‑Type’ Cadre,” and “Study the ‘Four Zeros, Seven Degrees, Nine Essentials’ Management Principles”—to reinforce work style and significantly boost the enthusiasm and initiative of all production‑related cadres and employees, thereby comprehensively improving production quality and efficiency.

Strengthening operational management to enhance corporate profitability. Relying on its cost advantages within the industrial chain, Shenma Shares has strategically capitalized on the recovery in industry supply and demand, flexibly adjusted its market strategies, and effectively improved production and operations. In the first half of the year, the company reported main business revenue of RMB 6.41 billion, down 2.98% year over year; net profit attributable to shareholders was RMB 62.98 million, up 149.14% year over year; and non‑GAAP net profit stood at RMB 61.65 million, up 138.88% year over year. In the second quarter, main business revenue reached RMB 3.295 billion, a 2.31% year‑over‑year decline; quarterly net profit attributable to shareholders totaled RMB 94.30 million, up 271.94% year over year; and quarterly non‑GAAP net profit amounted to RMB 115 million, up 245.31% year over year. The company’s operating cash flow remained robust, reflecting an overall positive operating trend.

Focusing on long-term planning, the company is charting a course for sustained growth. Grounded in a vision of enduring development and aligned with its operational realities, Shenma Shares is accelerating the implementation of several key projects, including the third phase of the Aisian project, the high-value utilization of carbon dioxide initiative, the Ningdong nylon‑66 impregnated fabric project, the sulfuric acid project, and the catalyst recovery program, thereby expediting the enterprise’s transformation and upgrading. Once this portfolio of projects is completed and brought online, the company’s profitability is expected to improve further, enabling it to honor its cash dividend policy, strike an optimal balance between industrial development and shareholder returns, and deliver consistent, long‑term, sustainable investment value to all shareholders.