Yunnan Yuntianhua Co., Ltd. reported a 6.14% year-on-year increase in net profit attributable to shareholders for the first half of 2026, with coal procurement costs easing to partially offset a sharp rise in sulfur prices.

The company posted revenue of 22.82 billion yuan  ($3.38 billion)  in January-June 2026, down 8.92% from a year earlier, while net profit reached 2.93 billion yuan, up 6.14% year on year. Non-GAAP net profit rose 6.5% to 2.87 billion yuan.

The revenue decline reflected a deliberate restructuring of its trading business. Trading and logistics revenue fell to 3.25 billion yuan from 8.06 billion yuan in the same period last year, while fertilizer revenue rose 16.18% to 14.77 billion yuan, offsetting the trade contraction.

Yunnan Tianan operates four business segments: fertilizer, phosphate rock mining and processing, phosphate chemicals and new materials, and trading logistics. The company holds nearly 800 million tonnes of phosphate rock reserves with an annual mining and processing capacity of 14.5 million tonnes, achieving full self-sufficiency.

Its synthetic ammonia capacity has been expanded to 2.7 million tonnes per year with a self-sufficiency rate above 97%. Total fertilizer capacity exceeds 10 million tonnes per year, including over 2.9 million tonnes of urea, 5.55 million tonnes of phosphate fertilizer and 1.85 million tonnes of compound fertilizer, making it one of China's largest fertilizer producers.

The company also owns a large open-pit coal mine in Hulunbuir, Inner Mongolia, with an annual mining capacity of 4 million tonnes, providing stable feedstock for its northern synthetic ammonia production base.

During the reporting period, 40 major production units achieved long-cycle operation targets, with three setting new duration records. The company said strategic procurement of coal and sulfuric acid helped mitigate price volatility, while efficient sulfur supply management delivered results in both supply security and cost reduction.

Output included 5.67 million tonnes of finished ore, 2.10 million tonnes of phosphate fertilizers, 1.54 million tonnes of urea and 1.20 million tonnes of compound fertilizer. Phosphate chemicals output comprised 309,000 tonnes of feed-grade calcium phosphates, 16,600 tonnes of yellow phosphorus, 51,500 tonnes of iron phosphate and 62,400 tonnes of polyoxymethylene.

Average sulfur procurement prices surged 88.5% year on year to 3,461 yuan/t in the first half. However, raw coal and fuel coal average prices fell 15.7% and 11.2% year on year to 791 yuan/t and 509 yuan/t respectively, partially cushioning the sulfur cost spike. Natural gas procurement averaged 1.95 yuan per cubic meter, roughly flat from a year earlier.

Average ex-tax selling prices for phosphate fertilizer rose 20.1% year on year to 3,785 yuan/t, while feed-grade calcium hydrophosphate prices gained 30.7% to 5,085 yuan/t. Yellow phosphorus prices increased 15.4% to 23,811 yuan/t and iron phosphate rose 20.9% to 10,707 yuan/t. Polyoxymethylene prices fell 9.3% to 9,664 yuan/t, while urea prices declined 1% to 1,737 yuan/t.

Net cash flow from operating activities dropped 30.16% year on year to 2.95 billion yuan, which the company attributed to higher receivables recovery in the prior-year period and increased working capital tied to sulfur procurement.

Yunnan Tianan proposed a cash dividend of 2 yuan per 10 shares, totaling 365 million yuan. Cumulative cash dividends including share buybacks over the past three years reached 7.13 billion yuan, with a current payout ratio of 40.42%, both ranking among the highest in the industry.