Earnings release
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– 1 – Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement. CHINA SANJIANG FINE CHEMICALS COMPANY LIMITED (Incorporated in the Cayman Islands with limited liability) (Stock Code: 2198) ʮ̡ INTERIM RESULTS ANNOUNCEMENT FOR THE SIX MONTHS ENDED 30 JUNE 2026 The board (the “ Board”) of directors (the “ Directors”) of China Sanjiang Fine Chemicals Company Limited (the “ Company”) wishes to announce the unaudited consolidated interim results of the Company and its subsidiaries (the “ Group”) for the six months ended 30 June 2026 (the “ period under review ”). RESULTS HIGHLIGHTS 6 months ended 30 June 2026 6 months ended 30 June 2025 2026 1H vs. 2025 1H Change RMB’000 RMB’000 % Revenue 9,599,498 9,105,675 5.4% Gross profit 990,178 464,612 113.1% Net profit attributable to equity holders of the parent 656,133 301,132 117.9% Earnings per share — Basic (RMB) 56.86 fens 26.01 fens 118.6% Interim dividend per share (HK$) 10.0 cents — N/A Gross profit margin (%) 10.3% 5.1% 5.2% Gearing — interest-bearing borrowings to total assets basis 51.2% 52.5% –1.3%
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– 2 – MANAGEMENT DISCUSSION AND ANALYSIS During the six months ended 30 June 2026 (the “ period under review ”), the oil and chemical sector (the “ Sector”) and the economy of the People’s Republic of China (the “PRC”) continued to operate in a volatile and complex environment, shaped by fluctuating commodity prices, evolving trade and tariff policies, and heightened geopolitical tensions, including disruptions to key crude oil and feedstock shipping routes in the Middle East. Against this backdrop, China Sanjiang Fine Chemicals Company Limited (the “ Company”) and its subsidiaries (the “ Group”) delivered a substantial improvement in profitability, with net profit attributable to equity holders of the Company increasing by approximately 117.9% to approximately RMB656.1 million as compared with approximately RMB301.1 million in the corresponding period of 2025. Basic earnings per share increased to approximately RMB56.86 fens from approximately RMB26.01 fens. The Group’s revenue increased by approximately 5.4% to approximately RMB9,599.5 million, while the overall gross profit margin improved by approximately 5.2 percentage points to approximately 10.3% (six months ended 30 June 2025: approximately 5.1%). This performance was underpinned by the Group’s vertically integrated operations, its agile adjustment of feedstock and product mix, and firm demand and margin expansion across a number of key products, in particular ethylene oxide (“ EO”), polypropylene (“ PP”), ethylene and methyl tert-butyl ether (“ MTBE”). During the period under review, the Board has recommended an interim dividend of HK10.0 cents per share. The Group intends to progressively increase its dividend payout ratio, taking into account its stable and growing operating performance and a prudent and improving gearing position. The Company is committed to balancing the overall interests of shareholders with the requirements for sustainable long-term development. The Group continued to benefit from the full-cycle integrated operations of its 6th phase EO/EG production facilities and the Naphtha/Ethane/Propane-to-Ethylene/Propylene production facility , which led to the flexibility to rebalance feedstock inputs among naphtha, ethane, propane and methanol and allowed the Group to optimise raw material costs and to mitigate its exposure to the price volatility of any single feedstock. During the period under review, the landed cost of imported ethane — a key feedstock sourced principally from the United States — was affected by elevated ocean freight rates arising from geopolitical tensions in the Middle East and along the Strait of Hormuz. In response, the Group actively adjusted its feedstock mix and continued to advance its own shipping and logistics arrangements with a view to stabilising ethane transportation costs and further strengthening its cost competitiveness over the medium term. Product-wise, the Group dynamically adjusted its production and sales mix to prioritise higher-margin and higher value-added products: EO, PP, ethylene, MTBE and butadiene each recorded improved gross profit margins over the corresponding period of 2025. The Group also expanded its export sales during the period, with revenue from customers outside Mainland China increasing significantly, driven mainly by MTBE.
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– 3 – Looking ahead to the second half of 2026, the Group expects downstream demand across its major product lines to remain in the early stage of a gradual recovery, supported by policy measures and export opportunities, although the pace of recovery may be uneven. On the supply side, limited new domestic capacity additions, the continued exit of ageing capacity both in the PRC and overseas, and low inventory levels across the value chain are expected to support product prices and to widen price elasticity as demand strengthens. The Group remains cautious regarding global economic uncertainty, trade and tariff developments, commodity price volatility, and geopolitical risks affecting feedstock supply and freight costs. Nonetheless, the Group’s vertically integrated structure, diversified feedstock sourcing capability, disciplined cost control and continued deleveraging provide a solid foundation for sustaining profitability and creating long-term value for shareholders. The Group will continue to improve its raw-material mix and reduce transportation and logistics costs, pursue opportunities in high value-added products and further downstream integration, and, over time, improve its gearing ratio and enhance shareholder returns. FINANCIAL REVIEW Revenue The breakdown by line of business in terms of revenue, sales volume, average selling price and gross profit margin during the periods under review are set forth below: First Half year 2026 % of revenue First Half year 2025 % of revenue Variance +/(–) REVENUE (RMB’000) Ethylene oxide 1,052,477 11% 987,919 11% +6.5% Ethylene glycol 1,420,224 15% 1,741,183 20% –18.4% Polypropylene 994,449 10% 1,686,503 19% –41.0% Ethylene 725,951 8% 387,747 4% +87.2% Surfactants 1,470,174 15% 2,102,297 22% –30.1% MTBE 2,188,954 23% 435,346 5% +402.8% Gas, diethylene glycol and others 511,204 5% 398,372 4% +28.3% Butadiene 435,983 5% 345,061 4% +26.3% Ethanolamine 456 0% 105,966 1% –99.6% Surfactants processing service 48,522 1% 36,859 0% +31.6% Others 751,104 7% 878,422 10% –14.5% 9,599,498 100% 9,105,675 100% +5.4%
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– 4 – First Half year 2026 % of revenue First Half year 2025 % of revenue Variance +/(–) SALES VOLUME (MT) Ethylene oxide 170,573 167,286 +2.0% Ethylene glycol 385,015 417,152 –7.7% Polypropylene 140,122 267,186 –47.6% Ethylene 105,887 61,840 +71.2% Surfactants 253,491 318,209 –20.3% MTBE 433,520 91,210 +375.3% Gas, diethylene glycol and others N/A N/A N/A Butadiene 40,766 36,806 +10.8% Ethanolamine 160 19,016 –99.2% Surfactants processing service 174,722 124,090 +40.8% AVERAGE SELLING PRICE (RMB) Ethylene oxide 6,170 5,906 +4.5% Ethylene glycol 3,689 4,174 –11.6% Polypropylene 7,097 6,312 +12.4% Ethylene 6,856 6,270 +9.3% Surfactants 5,800 6,607 –12.2% MTBE 5,049 4,773 +5.8% Gas, diethylene glycol and others N/A N/A N/A Butadiene 10,695 9,375 +14.1% Ethanolamine 2,850 5,572 –48.9% Surfactants processing service 278 297 –6.4% GROSS PROFIT MARGIN (%) Ethylene oxide 23.6% 14.7% +8.9% Ethylene glycol 2.2% 11.0% –8.8% Polypropylene 15.9% 0.1% +15.8% Ethylene 14.5% –0.5% +15.0% Surfactants 10.8% 15.1% –4.3% MTBE 8.7% –4.7% +13.4% Gas, diethylene glycol and others N/A N/A N/A Butadiene 45.2% 33.0% +12.2% Ethanolamine –15.8% 11.6% –27.4% Surfactants processing service 60.4% 71.7% –11.3%
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– 5 – Ethylene oxide During the period under review, revenue from the EO line of business amounted to approximately RMB1,052.5 million, representing an increase of approximately 6.5% when compared with the corresponding period of 2025. The increase was primarily driven by an increase in the average selling price (“ ASP”) of EO of approximately 4.5%, together with a modest increase in sales volume of approximately 2.0%, reflecting relatively stable EO pricing and steady downstream demand. The gross profit margin of the EO line of business improved to approximately 23.6% (six months ended 30 June 2025: approximately 14.7%), as the Group optimised its production mix and benefited from improved product spreads and lower feedstock costs. Ethylene glycol During the period under review, revenue from the EG line of business amounted to approximately RMB1,420.2 million, representing a decrease of approximately 18.4% when compared with the corresponding period of 2025. The decrease was primarily attributable to a decrease in ASP of EG of approximately 11.6% and a decrease in sales volume of approximately 7.7%. The gross profit margin of the EG line of business decreased to approximately 2.2% (six months ended 30 June 2025: approximately 11.0%), primarily as a result of narrower product spreads amid executing sales contracts entered into during early part of the period, notwithstanding a recovery in EG prices towards the latter part of the period. Polypropylene During the period under review, revenue from the PP line of business amounted to approximately RMB994.4 million, representing a decrease of approximately 41.0% when compared with the corresponding period of 2025, which was primarily due to a decrease in sales volume of approximately 47.6%, partially offset by an increase in ASP of approximately 12.4%. The lower sales volume mainly reflected the temporary adjustment of production at certain upstream units during the period. Despite the lower volume, the gross profit margin of the PP line of business improved significantly to approximately 15.9% (six months ended 30 June 2025: approximately 0.1%), supported by higher ASPs and an improved cost structure. Ethylene During the period under review, revenue from the ethylene line of business amounted to approximately RMB726.0 million, representing an increase of approximately 87.2% when compared with the corresponding period of 2025, primarily due to an increase in sales volume of approximately 71.2% and an increase in ASP of approximately 9.3%, as the Group increased merchant sales of ethylene in view of favourable market spreads. The gross profit margin of the ethylene line of business improved to approximately 14.5% (six months ended 30 June 2025: approximately –0.5%).
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– 6 – Surfactants During the period under review, revenue from the surfactants line of business amounted to approximately RMB1,470.2 million, representing a decrease of approximately 30.1% when compared with the corresponding period of 2025, primarily due to a decrease in sales volume of approximately 20.3% and a decrease in ASP of approximately 12.2%, reflecting softer downstream demand and pricing during the period. The gross profit margin of the surfactants line of business decreased to approximately 10.8% (six months ended 30 June 2025: approximately 15.1%). MTBE During the period under review, revenue from the MTBE line of business amounted to approximately RMB2,189.0 million, representing an increase of approximately 402.8% when compared with the corresponding period of 2025. The increase was primarily driven by a substantial increase in sales volume of approximately 375.3%, together with an increase in ASP of approximately 5.8%, following the ramp-up of the Group’s MTBE production capacity and an increase in export sales. The gross profit margin of the MTBE line of business turned around to approximately 8.7% (six months ended 30 June 2025: approximately –4.7%). Butadiene During the period under review, revenue from the butadiene line of business amounted to approximately RMB436.0 million, representing an increase of approximately 26.3% when compared with the corresponding period of 2025, driven by an increase in ASP of approximately 14.1% and an increase in sales volume of approximately 10.8%, supported by firm demand from the synthetic rubber and automotive sectors. The gross profit margin of the butadiene line of business remained strong at approximately 45.2% (six months ended 30 June 2025: approximately 33.0%). Gross profit margin Overall gross profit margin of the Group improved by approximately 5.2 percentage points to approximately 10.3% (six months ended 30 June 2025: approximately 5.1%). The improvement was primarily due to increases in the gross profit margins of a number of major lines of business — namely EO, PP, ethylene, MTBE and butadiene — as a result of the combined effects of: (i) higher ASPs and improved product spreads for selected products; (ii) optimisation of the product mix to prioritise higher-margin products in response to market demand; and (iii) the continued efficiency benefits of the Group’s vertically integrated production facilities and flexible feedstock sourcing. These improvements more than offset the margin compression in the EG and surfactants lines of business.
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– 7 – Administrative expenses Administrative expenses amounted to approximately RMB105.6 million (six months ended 30 June 2025: approximately RMB125.6 million) and mainly consist of staff related costs, various local taxes and educational surcharge, depreciation, audit fee and miscellaneous expenses. Income tax expense Income tax expense increased to approximately RMB119.4 million (six months ended 30 June 2025: approximately RMB28.6 million), broadly in line with the increase in the Group’s profit before tax to approximately RMB776.6 million (six months ended 30 June 2025: approximately RMB330.6 million). Liquidity and financial resources As at 30 June 2026, the Group had cash and cash equivalents of approximately RMB1,072.8 million (31 December 2025: approximately RMB638.7 million) and pledged deposits and time deposits (current and non-current) of approximately RMB884.4 million (31 December 2025: approximately RMB1,739.2 million). The Group had interest-bearing bank and other borrowings (including the current portion of long-term loans) of approximately RMB11,031.9 million as at 30 June 2026 (31 December 2025: approximately RMB11,796.9 million). The Group’s gearing ratio, expressed as a percentage of total interest-bearing borrowings to total assets, was approximately 51.2% as at 30 June 2026 (31 December 2025: approximately 52.7%). Net cash flows generated from operating activities amounted to approximately RMB741.2 million during the period under review (six months ended 30 June 2025: approximately RMB836.6 million). The Group maintains internal gearing guidance and continues to hold sufficient liquidity to respond to potential market fluctuations.
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– 8 – CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS For the six months ended 30 June 2026 Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Notes RMB’000 RMB’000 REVENUE 4 9,599,498 9,105,675 Cost of sales (8,609,320) (8,641,063) Gross profit 990,178 464,612 Other income and gains 4 112,116 215,181 Selling and distribution cost (2,686) (3,134) Administrative expenses (105,598) (125,646) Other expenses 4 (61,727) (17,451) Finance costs 5 (155,678) (202,988) PROFIT BEFORE TAX 6 776,605 330,574 Income tax expense 7 (119,449) (28,551) PROFIT FOR THE PERIOD 657,156 302,023 Attributable to: Equity holders of the parent 656,133 301,132 Non-controlling interests 1,023 891 657,156 302,023 EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT — Basic and diluted (RMB) 8 56.86 fens 26.01 fens INTERIM DIVIDEND DECLARED FOR THE PERIOD 9 102,706 —
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– 9 – CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the six months ended 30 June 2026 Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) RMB’000 RMB’000 PROFIT FOR THE PERIOD 657,156 302,023 TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 657,156 302,023 Attributable to: Equity holders of the parent 656,133 301,132 Non-controlling interests 1,023 891 657,156 302,023
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– 10 – CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION At 30 June 2026 30 June 2026 31 December 2025 (Unaudited) (Audited) Notes RMB’000 RMB’000 NON-CURRENT ASSETS Property, plant and equipment 12,494,258 12,854,476 Investment properties 72,467 73,847 Right-of-use assets 639,363 648,490 Other intangible assets 18,002 33,338 Advance payments for property, plant and equipment 225,297 245,998 Equity investments designated at fair value through other comprehensive income 3,409 3,409 Pledged deposits 13 31,661 156,054 Deferred tax assets 7 7,586 Total non-current assets 13,484,464 14,023,198 CURRENT ASSETS Inventories 11 3,165,165 2,965,354 Trade and notes receivables 12 1,517,079 1,357,211 Prepayments, other receivables and other assets 1,441,488 1,797,177 Derivative financial instruments 378 1,494 Financial assets at fair value through profit or loss 10 2,787 4,741 Pledged deposits and time deposit 13 852,751 1,583,183 Cash and cash equivalents 13 1,072,773 638,719 Total current assets 8,052,421 8,347,879 CURRENT LIABILITIES Trade and bills payables 14 1,238,235 1,670,797 Other payables and accruals 1,503,979 1,893,643 Derivative financial instruments 34,380 45,870 Financial liabilities at fair value through profit or loss 253,207 331,360 Interest-bearing bank and other borrowings 15 7,939,105 8,184,915 Long-term loan within one year 15 1,311,952 2,253,805 Lease liabilities 2,478 5,993 Due to related parties 16 577,773 728,055 Tax payable 182,297 109,819 Total current liabilities 13,043,406 15,224,257 NET CURRENT LIABILITIES (4,990,985) (6,876,378) TOTAL ASSETS LESS CURRENT LIABILITIES 8,493,479 7,146,820
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– 11 – 30 June 2026 31 December 2025 (Unaudited) (Audited) Notes RMB’000 RMB’000 NON-CURRENT LIABILITIES Interest-bearing bank and other borrowings 15 1,780,802 1,358,228 Due to related parties 16 770,261 343,866 Lease liabilities 14,081 13,870 Deferred tax liabilities 54,122 67,146 Other payables 61,273 66,486 Total non-current liabilities 2,680,539 1,849,596 Net assets 5,812,940 5,297,224 EQUITY Equity attributable to owners of the parent Issued capital 102,662 102,662 Reserves 5,639,127 5,210,138 5,741,789 5,312,800 Non-controlling interests 71,151 (15,576) Total equity 5,812,940 5,297,224
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– 12 – CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS For the six months ended 30 June 2026 Six months ended 30 June 2026 2025 (Unaudited) (Unaudited) Note RMB’000 RMB’000 Net cash flows in respect of operating activities 741,160 836,567 Net cash flows in respect of investing activities (98,000) (810,297) Net cash flows in respect of financing activities (199,926) 232,191 Net increase in cash and cash equivalents 443,234 258,461 Cash and cash equivalents at beginning of period 638,719 564,328 Effect of foreign exchange rate change, net (9,180) (242) CASH AND CASH EQUIVALENTS AT END OF PERIOD 13 1,072,773 822,547
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– 13 – CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY For the six months ended 30 June 2026 — unaudited Attributable to owners of the parent Share Capital Treasury shares Statutory surplus & safety production reserve Special reserve Share premium Capital redemption reserve Financial assets at FV through OCI revaluation reserve Merger reserve Shares repurchased for share award plan Retained profits Total Non- controlling interests Total equity RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 RMB’000 At 31 December 2025 102,662 (6,227) 1,056,183 (38,363) 1,352,311 2,371 2,409 (627,092) (46,833) 3,515,379 5,312,800 (15,576) 5,297,224 Profit for the period — — — — — — — — — 656,133 656,133 1,023 657,156 Total comprehensive income for the period — — — — — — — — — 656,133 656,133 1,023 657,156 Acquisition of non-controlling interest — — — (160,505) — — — — — — (160,505) 85,704 (74,801) Repurchase of ordinary shares — (16,847) — — — — — — — — (16,847) — (16,847) Final 2025 dividend — — — — — — — — — (51,189) (51,189) — (51,189) Appropriation to statutory surplus/safety production reserve — — 111,367 — — — — — — (111,367) — — — Safety production reserve used — — (4,109) — — — — — — 4,109 — — — Offset with dividend — — — — — — — — 1,397 — 1,397 — 1,397 At 30 June 2026 102,662 (23,074) 1,163,441 (198,868) 1,352,311 2,371 2,409 (627,092) (45,436) 4,013,065 5,741,789 71,151 5,812,940 At 31 December 2024 102,662 — 948,666 (38,363) 1,352,311 2,371 2,409 (627,092) (46,833) 3,215,638 4,911,769 (17,981) 4,893,788 Profit for the period — — — — — — — — — 301,132 301,132 891 302,023 Total comprehensive income for the period — — — — — — — — — 301,132 301,132 891 302,023 Appropriation to statutory surplus/safety production reserve — — 89,342 — — — — — — (89,342) — — — Safety production reserve used — — (7,431) — — — — — — 7,431 — — — At 30 June 2025 102,662 — 1,030,577 (38,363) 1,352,311 2,371 2,409 (627,092) (46,833) 3,434,859 5,212,901 (17,090) 5,195,811
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– 14 – NOTES TO CONDENSED CONSOLIDATED FINANCIAL INFORMATION 1 CORPORATE INFORMATION The Company was incorporated with limited liability in the Cayman Islands on 30 January 2009. The registered office address of the Company is Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman, KY1-1111, Cayman Islands. The Company and its subsidiaries (the “ Group”) was principally engaged in the manufacture and supply of ethylene oxide (“ EO”), ethylene glycol (“ EG”), polypropylene (“ PP”), methyl tert-butyl ether (“MTBE”) and surfactants in the PRC. The Group was also engaged in the provision of processing services for PP, MTBE and surfactants to its customers and the production and supply of other chemical products such as Butadiene, Ethanolamine and industrial gases, namely oxygen, nitrogen and argon in the PRC. EO is a key intermediary component for the production of ethylene derivative products such as ethanolamines and glycol ethers and a wide range of surfactants. EG is a type of semi-finished goods that is used to produce other bio-organic chemical products such as mono ethylene glycol which is used to produce polyester and anti-frozen chemical liquids. PP is a kind of thermoplastic resin, which can be used in knitting products, injection molding products, film products, fiber products, pipes etc. Surfactants are widely applied in different industries as scouring agents, moisturising agents, emulsifiers and solubilisers. MTBE is a gasoline additive, used as an oxygenate to raise the octane number and is almost exclusively used as a fuel component in fuel for gasoline engines. 2.1 BASIS OF PRESENTATION AND PREPARATION The Group’s unaudited condensed consolidated interim financial information for the six months ended 30 June 2026 has been prepared in accordance with Hong Kong Accounting Standard (“HKAS”) 34 Interim Financial Reporting . The Group’s unaudited condensed consolidated interim financial information does not include all the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group’s annual financial statements for the year ended 31 December 2025. The unaudited condensed consolidated interim financial information has been prepared under the historical cost convention, except for certain equity investments designated at fair value through other comprehensive income, financial assets at fair value through profit or loss, and derivative financial instruments which have been measured at fair value. These financial information is presented in Renminbi (“ RMB”) and all values are rounded to the nearest thousand except when otherwise indicated. The Group’s unaudited condensed consolidated interim financial information has been reviewed by the audit committee of the Company. Going concern assumption As at 30 June 2026, the Group’s net current liabilities amounted to approximately RMB4,990,985,000. The liquidity of the Group is primarily dependent on its ability to maintain adequate cash inflows from operations and sufficient financing to meet its financial obligations as and when they fall due. In preparing the financial information, the directors of the Company have considered the Group’s sources of liquidity and believe that adequate funding is available to fulfill the Group’s debt obligations and capital expenditure requirements. Accordingly, the condensed consolidated financial information has been prepared on a basis that the Group will be able to continue as a going concern.
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– 15 – 2.2 CHANGES IN ACCOUNTING POLICIES AND DISCLOSURES The accounting policies adopted in the preparation of the interim condensed consolidated financial information are consistent with those applied in the preparation of the Group’s annual consolidated financial statements for the year ended 31 December 2025, except for the adoption of the following amended HKFRS Accounting Standard for the first time for the current period’s financial information. Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity Annual Improvements to HKFRS Accounting Standards — Volume 11 Amendments to HKFRS 1, HKFRS 7, HKFRS 9, HKFRS 10 and HKAS 7 The nature and impact of the amended HKFRS Accounting Standard are described below: Amendments to HKFRS 9 and HKFRS 7 Amendments to the Classification and Measurement of Financial Instruments clarify that a financial asset is derecognised when the entity’s rights to the contractual cash flows expire or are transferred, while a financial liability is derecognised on the settlement date. The amendments introduce an accounting policy option to derecognise a financial liability that is settled through an electronic payment system before the settlement date if specified criteria are met. The amendments clarify how to assess the contractual cash flow characteristics of financial assets with environmental, social and governance and other similar contingent features. Moreover, the amendments clarify the requirements for classifying financial assets with non-recourse features and contractually linked instruments. The amendments also include additional disclosures for investments in equity instruments designated at fair value through other comprehensive income and financial instruments with contingent features. Since the Group’s accounting policy for the derecognition of financial assets and liabilities in prior years aligned with the amendments and the Group did not have the financial assets that were addressed by the amendments, the amendments did not have any impact on the interim condensed consolidated financial information. The Group will provide additional disclosures for its equity investments designated at fair value through other comprehensive income in the Group’s consolidated financial statements for the year ending 31 December 2026. Amendments to HKFRS 9 and HKFRS 7 Contracts Referencing Nature-dependent Electricity clarify the application of the “own-use” requirements for in-scope contracts and amend the designation requirements for a hedged item in a cash flow hedging relationship for in-scope contracts. The amendments also include additional disclosures that enable users of financial statements to understand the effects these contracts have on an entity’s financial performance and future cash flows. As the Group did not have any contracts that are in the scope of the amendments, the amendments did not have any impact on the interim condensed consolidated financial information. Annual Improvements to HKFRS Accounting Standards — Volume 11 set out narrow scope amendments to HKFRS 1, HKFRS 7 (and the accompanying Guidance on implementing HKFRS 7 ), HKFRS 9, HKFRS 10 and HKAS 7. The amendments include clarifications, simplifications, corrections or changes to improve consistency in the corresponding HKFRS Accounting Standards. The amendments did not have any impact on the interim condensed consolidated financial information.
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– 16 – 3 SEGMENT INFORMATION For management purpose, the Group did not organise into business units based on their products and services and only has one reportable operating segment. Management monitors the operating results of its operating segment as a whole for the purpose of making decisions about resource allocation and performance assessment. Information about products and services The following table sets forth the total revenue from external customers by product and service during the periods: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Sales of goods 9,542,491 9,059,571 Provision of services 48,522 36,859 Others 8,485 9,245 Total 9,599,498 9,105,675 Geographical information (a) Revenue from external customers Six months ended 30 June 2026 2025 RMB’000 RMB’000 Chinese Mainland 7,120,167 8,838,060 Others 2,479,331 267,615 Total revenue 9,599,498 9,105,675 (b) The Group’s non-current assets are all located in Chinese Mainland.
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– 17 – 4 REVENUE, OTHER INCOME AND GAINS AND OTHER EXPENSES Revenue, which is also the Group’s turnover, represents the net invoiced value of goods sold, net of valued-added tax and government surcharges, and after allowances for returns and trade discounts. An analysis of revenue is shown in Note 3 above. An analysis of other income and gains and other expenses is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Other income and gains Additional deduction for input value-added tax 10 8,185 Interest/investment income derived from banks&related parties, financial assets at fair value through profit or loss 32,836 24,768 Reversal of write-down of inventories to net realisable value — silver (being part of catalyst) — 82,325 Sales in respect of trading of oil and chemicals 58,568 5,619 Gains on disposal of silver catalysts — 54,078 Others 20,702 40,206 112,116 215,181 Six months ended 30 June 2026 2025 RMB’000 RMB’000 Other expenses Disposal of property, plant and equipment 9,657 3,156 Foreign exchange loss, net 9,888 10,895 Fair value changes of financial instruments 26,056 — Others 16,126 3,400 Total 61,727 17,451
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– 18 – 5 FINANCE COSTS An analysis of finance costs is as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Interest on bank and other borrowings 120,074 161,237 Interest on discounted notes receivables 35,285 40,648 Interest on lease liabilities 319 1,103 Total 155,678 202,988 6 PROFIT BEFORE TAX The Group’s profit before tax is arrived at after charging: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Cost of inventories sold 8,590,563 8,630,620 Cost of service provided 18,757 10,443 Depreciation of property, plant and equipment 468,609 438,307 Depreciation of right-of-use assets 9,127 25,856 Amortisation of other intangible assets 2,266 4,982 7 INCOME TAX The Group is subject to income tax on an entity basis on profits arising in or derived from the jurisdictions in which members of the Group are domiciled and operate. The income tax expense of the Group for the periods are analysed as follows: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Current Charge for the period 124,894 15,904 Effect of additional tax deduction enacted by tax authority — (4,026) Deferred (5,445) 16,673 Total tax charge for the period 119,449 28,551 Pursuant to the rules and regulations of the Cayman Islands, the Company is not subject to any income tax in the Cayman Islands.
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– 19 – Pursuant to the relevant tax law of the Hong Kong Special Administrative Region, Hong Kong profits tax has been provided at the rate of 16.5% (2025: 16.5%) on the estimated assessable profits arising in Hong Kong during the period. The Group conducts a significant portion of its business in Mainland China and the applicable income tax rate of its subsidiaries operating in Mainland China is generally 25% in accordance with the Corporate Income Tax Law which was approved and became effective on 1 January 2008, except for certain entities who are entitled to preferential tax rates of 15%, subject to the approval of the relevant tax bureaus. 8 EARNINGS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE PARENT The calculation of the basic earnings per share amount is based on the profit for the period attributable to ordinary equity holders of the parent and the weighted average number of ordinary shares in issue during the period. The number of shares for the current period has been arrived at after eliminating shares repurchased. No adjustment has been made to the basic profit per share amount presented for the period ended 30 June 2026 and the period ended 30 June 2025 in respect of a dilution as the Group had no potentially dilutive ordinary shares in issue during the period. The calculations of basic and diluted earnings per share are based on: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Earnings Profit attributable to ordinary equity holders of the parent 656,133 301,132 Number of shares ’000 ’000 Shares Weighted average number of ordinary shares in issue during the period 1,153,915 1,157,875 9 DIVIDENDS i) Dividends payable to equity shareholders of the Company attributable to the period: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Proposed interim — HK10.0 cents (2025: HK Nil) 102,706 — The Board has declared that an interim dividend of HK10.0 cents (2025: HK Nil) per share for the six months ended 30 June 2026 to shareholders whose names appear in the Register of Members on 18 September 2026.
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– 20 – ii) Dividends payable to equity shareholders of the Company attributable to the previous financial period, approve and paid during the period: Six months ended 30 June 2026 2025 RMB’000 RMB’000 Final dividend in respect of the financial year ended 31 December 2025, approved and paid during the following period, of HK5.0 cents per ordinary share (2024: HK Nil), calculated based on the number of ordinary shares used in the basic earnings per share calculation 51,189 — 10 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS The Group has investments in certain wealth management products issued by banks in Mainland China. They were mandatorily classified as financial assets at fair value through profit or loss as their contractual cash flows are not solely payments of principal and interest. 11 INVENTORIES 30 June 2026 31 December 2025 RMB’000 RMB’000 Raw materials 2,427,090 2,260,021 Finished goods 738,075 705,333 Total 3,165,165 2,965,354 12 TRADE AND NOTES RECEIVABLES 30 June 2026 31 December 2025 RMB’000 RMB’000 Trade receivables 373,986 226,415 Notes receivable 1,149,972 1,137,675 1,523,958 1,364,090 Impairment (6,879) (6,879) Net carrying amount 1,517,079 1,357,211 The credit period is generally 10 to 60 days, extending up to three months for certain customers. Each customer has a maximum credit limit. The Group seeks to maintain strict control over its outstanding receivables. Overdue balances are reviewed regularly by senior management. The maturity of notes receivables is due within six months.
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– 21 – An aged analysis of the trade receivables of the Group as at the end of each of the reporting periods, based on the transaction dates and net of loss allowance, is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 1 to 30 days 274,018 204,116 31 to 60 days 67,951 5,050 61 to 90 days 9,868 156 91 to 360 days 14,910 9,996 Over 360 days 360 218 Total 367,107 219,536 13 CASH AND CASH EQUIVALENTS AND PLEDGED DEPOSITS 30 June 2026 31 December 2025 RMB’000 RMB’000 Cash and bank balances 1,072,773 638,719 Time deposits and pledged deposits 884,412 1,739,237 Subtotal 1,957,185 2,377,956 Less: Pledged time deposits: Pledged for silver leasing contracts 48,246 192,057 Pledged for options 7,022 3,072 Pledged for bills payable 229,614 358,224 Pledged for bank loans 419,251 993,693 Pledged of letter of guarantee 120,353 119,458 Time deposits 59,926 72,733 884,412 1,739,237 Cash and cash equivalents 1,072,773 638,719 Cash at banks earns interest at floating rates based on daily bank deposit rates. Pledged short term time deposits are made for periods with a maturity of the underlying notes payable, letters of credit and bank loans secured by these deposits. Time deposits earn interest at the respective short term time deposit rates. The bank balances and pledged deposits are deposited with creditworthy banks with no recent history of default.
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– 22 – 14 TRADE AND BILLS PAYABLES 30 June 2026 31 December 2025 RMB’000 RMB’000 Bills payable 316,800 787,941 Trade payable 921,435 882,856 Total 1,238,235 1,670,797 An aged analysis of the trade and bills payables as at the end of the reporting periods, based on the invoice date for trade and bills payables is as follows: 30 June 2026 31 December 2025 RMB’000 RMB’000 Within 3 months 963,197 1,228,379 3 to 6 months 203,298 394,158 6 to 12 months 46,921 15,503 12 to 24 months 7,585 18,397 24 to 36 months 9,443 6,416 Over 36 months 7,791 7,944 Total 1,238,235 1,670,797 Trade payables are non-interest-bearing and have an average credit term of three months and bills payable were all aged within one year.
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– 23 – 15 INTEREST-BEARING BANK AND OTHER BORROWINGS Effective interest rate Maturity 30 June 2026 31 December 2025 (%) RMB’000 RMB’000 Current Bank loans — unsecured 2.110–3.500 Within one year 3,586,675 3,431,577 Bank loans of US$15,724,373 — secured 4.192–4.605 Within one year — 110,523 Bank loans of US$71,195,886 — unsecured 4.233–6.600 Within one year — 500,421 Bank loans of US$30,844,360 — unsecured 3.818–3.868 Within one year 210,079 — Other loans — secured 2.448–6.015 Within one year 663,846 1,068,165 Current portion of long term bank loans — secured 2.44–4.6 Within one year 347,321 769,600 Current portion of long term bank loans — unsecured 2.420–3.650 Within one year 421,985 511,040 Discounted notes receivable 0.760–2.540 Within one year 2,069,651 2,324,394 Discounted letter of credit 1.000–2.250 Within one year 1,951,500 1,723,000 Total — current 9,251,057 10,438,720 Non-current Bank loans — secured 2.440–3.700 2027 122,952 789,600 Bank loans — secured 2.440–3.700 2028 346,063 25,600 Bank loans — secured 2.440–3.700 2029 586,400 25,600 Bank loans — secured 2.440–3.000 2030 232,316 14,000 Bank loans — unsecured 2.420–3.200 2027 115,500 116,920 Bank loans — unsecured 2.600–2.600 2029 9,970 — Bank loans — unsecured 2.520–2.520 2031 125,440 — Other loans — secured 3.671–4.225 2027 163,032 329,798 Other loans — secured 3.671–4.225 2028 79,129 56,710 Total — Non-current 1,780,802 1,358,228 Total 11,031,859 11,796,948
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– 24 – 30 June 2026 31 December 2025 RMB’000 RMB’000 Analysed into: Bank and other borrowings repayable: Within one year 9,251,057 10,438,720 In the second year 653,645 1,236,318 In the third to fifth years, inclusive 1,127,157 121,910 Total 11,031,859 11,796,948 Notes: Certain of guarantees of the Group’s bank and other borrowings are secured by: (i) mortgages over the Group’s leasehold lands, which had an aggregate carrying value at the end of the reporting period of approximately RMB366,062,000 (31 December 2025: RMB451,243,000) as at 30 June 2026; (ii) mortgages over the Group’s property, plant and equipment, which had an aggregate carrying value at the end of the reporting period of approximately RMB5,633,347,000 (31 December 2025: RMB6,449,927,000) as at 30 June 2026; (iii) the pledge of certain of the Group’s pledged deposits amounting to RMB419,251,000 (31 December 2025: RMB993,693,000) as at 30 June 2026; (iv) guarantees from Hangzhou Haoming Investment Co., Ltd. (“ Hangzhou Haoming ”), a related company and a company established in the PRC with limited liability, for an amount not exceeding RMB650,000,000 (31 December 2025: RMB650,000,000); (v) mortgages over 100% of the equity interest in Hangzhou Haoming; and (vi) mortgages over Guanlang’s collection rights of trade receivables from 2025 to 2029.
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– 25 – 16 DUE TO RELATED PARTIES 30 June 2026 31 December 2025 RMB’000 RMB’000 Current Jiahua Energy 345,588 390,442 Mei Fu Port 83,897 104,715 Blue Whale Bioenergy 3,614 67,269 Gangan Intelligent 50,702 41,931 Hangzhou Bay Petro 6,046 1,665 Haoxing Energy Conservation 59,457 53,852 Jiaxing Rewang 1,556 6,418 Jianghao Eco-agriculture 1,856 1,856 Jiahua Group 762 712 Jimoni Haijin New Energy 24,237 59,195 Jiahai Sda Energy 58 — 577,773 728,055 Non-current Mei Fu Petrochemical 722,261 295,866 Zhejiang Zhongxin 48,000 48,000 770,261 343,866 Total 1,348,034 1,071,921
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– 26 – CAPITAL COMMITMENTS As at 30 June 2026, the Group had capital commitments amounted to approximately RMB4,238 million. Included in the above approximately RMB4,238 million for the six months period ended 30 June 2026, approximately RMB4,142 million was attributable to the vessel-related commitments pursuant to the chartered agreements as disclosed in the circular of the Company dated 14 May 2025 (the “ Circular”), in relation to the leasing of vessels for the transportation of liquefied gases, including ethane, which are key feedstocks of the Group. Such arrangements are expected to enhance the Group’s logistics capabilities, secure stable supply of critical raw materials and improve cost efficiency over the long term. Upon delivery of the vessels in or around 2027, the Group is expected to recognise the corresponding right-of-use assets and lease liabilities on its consolidated statement of financial position, representing the present value of the lease payments over the charter period. CONTINGENT LIABILITIES As at 30 June 2026, the Group did not have material contingent liabilities not provided for in the financial information. EMPLOYEES AND REMUNERATION POLICY As at 30 June 2026, the Group employed a total of 1,470 full time employees. The Group’s employee benefits included housing subsidies, shift subsidies, bonuses, allowances, medical check-up, staff quarters, social insurance contributions, housing fund contributions and share award scheme. The remuneration committee of the Company (the “Remuneration Committee ”) reviews such packages annually, or when the occasion requires. The executive Directors, who are also employees of the Company, receive remuneration in the form of salaries, bonuses and other allowances. LIQUIDITY AND FINANCIAL RESOURCES The Group’s gearing ratio, expressed as a percentage of total interest-bearing borrowings to total assets, was approximately 51.2% as at 30 June 2026 (i.e. 52.7% as at 31 December 2025). The Group has internal gearing guidance, which takes into account various factors, including the typical time lag of around two years between the construction period of new production facilities and the generation of corresponding profits and revenue and the estimated buffer by the management of the Group to maintain sufficient liquidity in response to potential market fluctuations.
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– 27 – WORKING CAPITAL The inventory turnover days increased during the period under review (30 June 2026: 64.4 days; 31 December 2025: 59.1 days). The trade and notes receivables turnover days maintained at a relatively low level during the period under review (30 June 2026: 27.1 days; 31 December 2025: 28.0 days). The trade and notes payables turnover days maintained at a similar level during the period under review (30 June 2026: 30.6 days; 31 December 2025: 36.1 days). INTERIM DIVIDEND The Board has declared an interim dividend of HK10.0 cents per share for the six months ended 30 June 2026 (30 June 2025: Nil) to shareholders whose names appear on the Register of Members on 18 September 2026. It is expected that the interim dividend will be paid on 9 October 2026. CLOSURE OF REGISTER OF MEMBERS The Register of Members of the Company will be closed from 17 September 2026 to 18 September 2026, both days inclusive, during which period no transfer of shares in the Company can be registered. In order to qualify for the interim dividend, all transfers accompanied by the relevant share certificates must be lodged with the Company’s branch share registrar and transfer office in Hong Kong, Tricor Investor Services Limited, at 17/F., Far East Finance Centre, 16 Harcourt Road, Hong Kong, for registration no later than 4:30 p.m. on 16 September 2026. CORPORATE GOVERNANCE The Company has adopted the code provisions in the Corporate Governance Code and Corporate Government Report (“ CG Code ”), including any revisions and amendments from time to time, as set out in Appendix C1 to the Rules Governing the Listing of Securities (the “ Listing Rules ”) on The Stock Exchange of Hong Kong Limited (the “Stock Exchange ”) as its own code of corporate governance. The Board considers that the Company has complied with all the code provisions of the CG Code during the six months ended 30 June 2026 and up to the date of this announcement. MODEL CODE FOR SECURITIES TRANSACTIONS BY DIRECTORS The Company has adopted the Model Code for Securities Transactions by Directors of Listed Issuers (“ Model Code ”) as set out in Appendix C3 to the Listing Rules as its own code for securities transactions by Directors and senior management. Having made specific enquiries, all the Directors confirmed that they have complied with the Model Code throughout the six months ended 30 June 2026 and up to the date of this announcement.
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– 28 – AUDIT COMMITTEE As at the date of this announcement, the audit committee of the Company (the “ Audit Committee”) has three members, namely Shen Kaijun and Kong Liang and Pei Yu, all of whom are independent non-executive Directors. The chairman of the Audit Committee is Shen Kaijun. The primary responsibilities of the Audit Committee include, among others, reviewing and supervising the financial reporting process and internal control system of the Group, nominating and monitoring external auditors and providing advice and comments to the Board. The Audit Committee has reviewed the interim results of the Group for the six months ended 30 June 2026, including the accounting principles and practices adopted by the Group, and the Group’s internal control functions. REMUNERATION COMMITTEE As at the date of this announcement, the Remuneration Committee has three members, namely Pei Yu, Han Jianhong and Kong Liang of whom Kong Liang and Pei Yu are independent non-executive Directors and Han Jianhong is the Chairlady of the Board and an executive Director. The chairman of the Remuneration Committee is Pei Yu. The primary responsibilities of the Remuneration Committee include, among others, evaluating the performance and making recommendation on the remuneration package of the Directors and senior management, and evaluating and making recommendation on the share award plan of the Company. NOMINATION COMMITTEE As at the date of this announcement, the nomination committee of the Company (the “Nomination Committee ”) consists of three members, namely Han Jianhong, Shen Kaijun and Ms. Pei Yu, of whom Shen Kaijun and Pei Yu are independent non-executive Directors and Han Jianhong is the Chairlady of the Board and an executive Director. The chairlady of the Nomination Committee is Han Jianhong. The primary responsibilities of the Nomination Committee include, among others, considering and recommending to the Board suitably qualified persons to become the member of the Board and reviewing the structure, size and composition of the Board on a regular basis and as required. PURCHASE, SALES OR REDEMPTION OF LISTED SECURITIES During the period under review, the Company repurchased a total of 4,502,000 of its ordinary shares of HK$0.10 each on The Stock Exchange of Hong Kong Limited. Please refer to the next day disclosure return announcements during the period under review for details of price ranges and total considerations. All repurchased shares will not be entitled to any dividend (if any), following such repurchase. All repurchased shares will be subsequently cancelled. As of 30 June 2026, the Company had a total of 7,502,000 of its ordinary shares of HK$0.10 each that were repurchased and will be subsequently
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– 29 – cancelled and will not be entitled to any divided (if any). Save as disclosed above, neither the Company nor any of its subsidiaries had purchased, sold or redeemed any of the Company’s listed securities during the period ended 30 June 2026. PUBLICATION OF INTERIM REPORT ON THE WEBSITES OF THE STOCK EXCHANGE AND THE COMPANY The Company’s Interim Report for the six months ended 30 June 2026 will be dispatched to the shareholders of the Company and published on the websites of the Stock Exchange (www.hkex.com.hk) and the Company (www.chinasanjiangfinechemicals.com) in due course. By order of the Board China Sanjiang Fine Chemicals Company Limited HAN Jianhong Chairlady and Executive Director The People’s Republic of China, 26 August 2026 As at the date of this announcement, the Board comprises four executive Directors: Ms. HAN Jianhong, Mr. RAO Huotao, Ms. CHEN Xian and Ms. GUAN Siyi and three independent non-executive Directors: Mr. SHEN Kaijun, Ms. PEI Yu and Mr. KONG Liang. In this announcement, if there is any inconsistency between the Chinese names of the entities or enterprises established in the PRC and their English translations, the Chinese names shall prevail. The English translation of names or any descriptions in Chinese which are marked with “*” is for identification purpose only.