GHW INTL (09933) issues a positive profit alert, expecting mid-term net profit to increase by 25 million to 35 million yuan compared to the same period last year.

GHW INTL (09933) announced that, based on the recent preliminary review of the Group's unaudited consolidated management accounts for the six months ending June 30, 2026 (the "Period") and other information currently available to the Board, the Group expects to achieve a net profit ranging from RMB 25 million to RMB 35 million during this Period, compared to a net profit of approximately RMB 7.9 million for the six months ending June 30, 2025. The increase in net profit is primarily due to the strong performance of the Group's series of products in the methylamine industry (namely choline chloride and betaine) as well as new materials products from Jinhaiwei (specifically, polymethylenepolyphenyl isocyanate), resulting in a gross profit increase. This increase is mainly attributed to the rise in average selling prices of these products and the Groups successful implementation of a procurement strategy for trading products. The increase in net profit is partially offset by the following factors: (i) other losses, primarily due to the appreciation of various foreign currencies, including the US dollar, against the RMB during the Period, leading to a decrease in net foreign exchange gains; (ii) an increase in logistics costs (including transportation, port fees, and freight) driven by increased sales volume of certain products, resulting in higher selling expenses; and (iii) an increase in income tax expenses, consistent with the profit increase generated during the Period.