Financial Report Tracking Q3 2026–12: Another batch of high-quality companies tonight!

Stocks highlighted yesterday—Jingfeng Mingyuan and Jingyan Technology—delivered gains today. In prior periods, quality stocks selected daily consistently delivered gains the following day; readers are encouraged to review past analyses for self-study. Daily post-mortem principle: focus on companies with strong earnings performance and non-cyclical business models. (1) Zhenhua New Materials A lithium-ion battery cathode material producer specializing in nickel-based ternary cathodes (from medium-nickel to ultra-high-nickel grades), with ongoing development of sodium-ion battery cathodes and solid-state battery materials. Data: Revenue for the first three quarters totaled RMB 1.439 billion, up 34.86% year-on-year; net loss attributable to shareholders was RMB 284 million, narrowing by 14.7% compared to RMB 333 million in the same period last year. In Q3 alone, revenue reached RMB 789 million, surging 122.89% year-on-year and 69.0% quarter-on-quarter; net loss attributable to shareholders stood at RMB 110 million, down 4.84% year-on-year from RMB 116 million but widening 39.8% quarter-on-quarter. Analysis: Quarterly revenue climbed sequentially—from RMB 183 million in Q1 to RMB 467 million in Q2 and then to RMB 789 million in Q3—driven primarily by ternary cathode materials, which accounted for nearly half of total ternary cathode sales. Monthly shipments hit a record high of ~1,000 tons in June and surged further to ~1,600 tons in July. The revenue turnaround is unequivocal. However, gross margin declined. It stood at –20.5% in Q1, recovered to –1.62% in Q2 (due to cost pass-through as raw material prices rose), then fell again to –4.35% in Q3—indicating selling prices failed to keep pace with rising input costs. Consequently, Q3 revenue hit a new high while losses also peaked. Expenses: Only RMB 10.54 million were spent in Q3—nearly two-thirds lower than the average quarterly expense in the first half. The company explicitly noted reduced R&D spending this period. Yet despite slashing R&D costs significantly, losses widened—a common tactic in A-share financial reporting when firms attempt to “squeeze” profits. This confirms that deteriorating gross margins more than offset savings from lower expenses; the core issue lies squarely in gross profitability. Regarding new products: the 9-series ultra-high-nickel cathodes target racing vehicles, power tools, and low-altitude aerial vehicles—but these remain strategic deployments, not current revenue contributors. Outlook: Revenue has clearly turned upward, and losses are expanding only moderately. Still, excessive optimism is unwarranted: larger scale magnifies negative gross margins faster. The true inflection point will be whether quarterly gross margin turns positive. Sodium-ion and solid-state battery materials represent option-like upside. The company confirmed it has yet to receive large-scale order intentions from CATL for sodium-ion cathodes; installation of its solid-state battery pilot-line equipment has just been completed. Given the company is already trading near its bottom, we assign a cautiously positive assessment. (2) Baotailong A Heilongjiang-based coal chemical enterprise engaged across the full value chain—from coal mining and washing to coke production, and further downstream into coal tar, crude benzene, methanol, plus heat and power generation. Data: Revenue for the first three quarters totaled RMB 588 million, up 22.79% year-on-year; net loss attributable to shareholders was RMB 174 million, a 445.53% increase in loss magnitude year-on-year. In Q3 alone, revenue reached RMB 270 million, up 121.39% year-on-year and 71.0% quarter-on-quarter; net loss attributable to shareholders was RMB 56 million—up 15.8% year-on-year from RMB 49 million but down 11.5% quarter-on-quarter. Analysis: The sharp revenue growth stems from new coke oven capacity coming online. In Q3, coke revenue amounted to RMB 103 million, while coal tar, crude benzene, and methanol collectively contributed RMB 16 million—both categories being newly added in Q3 with no contribution in the first half. This lifted quarterly revenue from RMB 158 million to RMB 270 million.

Supply-demand synergy drives earnings upward: International Composite Materials’ Q3 report signals a new cycle of volume and price growth.

Recently, the fiberglass and electronic fabric markets have continued to rebound, with product quotations steadily rising and industry prosperity progressively recovering. As downstream demand revives across new energy, wind power, and electronic circuits, leading enterprises have steadily advanced their capacity deployment. On the evening of October 27, International Composite Materials (stock code: 301526) released its 2026 third-quarter financial report: Q3 revenue totaled RMB 3.031 billion, up 34.10% year-on-year; net profit attributable to shareholders was RMB 646 million, soaring 1,452.60% year-on-year. For the first three quarters, revenue reached RMB 7.995 billion, up 24.66% year-on-year; net profit attributable to shareholders amounted to RMB 1.286 billion, up 371.19% year-on-year; and adjusted net profit attributable to shareholders was RMB 1.202 billion, up 384.56% year-on-year. Combined with the company’s underlying operational fundamentals disclosed in its semi-annual report and peer companies’ Q3 results, International Composite Materials—leveraging its premium-capacity layout and optimized product mix—has fully captured the benefits of the current round of price increases. Its Q3 operations continued their robust upward trajectory, with the volume-and-price-upward logic consistently playing out. Industry prosperity persists; price hikes unlock profit elasticity Since the second half of the year, the fiberglass and electronic fabric markets have entered a clear upward pricing cycle. Earlier sustained inventory drawdowns, coupled with supply-side constraints and recovering downstream orders, have driven successive price increases for mainstream fiberglass yarn and high-end electronic fabrics. Cross-comparing Q3 reports already disclosed by peers, the volume-and-price-upward dividend has concentratedly manifested in leading enterprises’ financial statements. Specifically: China Jushi reported RMB 18.078 billion in first-three-quarters revenue, up 30.02% year-on-year, and RMB 5.346 billion in net profit attributable to shareholders, up 108.15% year-on-year; Sinoma Technology reported RMB 25.668 billion in first-three-quarters revenue, up 18.28% year-on-year, and RMB 1.910 billion in net profit attributable to shareholders, up 29.06% year-on-year; International Composite Materials reported RMB 7.995 billion in first-three-quarters revenue, up 24.66% year-on-year, and RMB 1.286 billion in net profit attributable to shareholders—up a staggering 371.19% year-on-year. Comparatively, International Composite Materials’ revenue growth sits between those of its two peers, yet its profit growth far outpaces the industry average. Across multiple business lines, the company is simultaneously advancing product premiumization: wind-power yarn, thermoplastic fiberglass, and electronic fabrics continue upgrading; electronic fine yarn and electronic fabric businesses constitute one of the core drivers behind this year’s earnings recovery. This round of electronic fabric price hikes features both substantial magnitude and pronounced profit elasticity. The company leads peers in high-frequency/high-speed and ultra-low-dielectric-loss electronic fabric categories, fully capturing the tailwind from the broader electronics industry’s revival. Capacity expansion precisely targets premium segments; private placement secures long-term growth foundation During an upcycle, capacity positioning determines a company’s mid-to-long-term market share. On the evening of August 31, the company announced plans to issue new shares to no more than 35 designated investors, raising up to RMB 5 billion. Proceeds will fund: (i) the High-Performance Base Material—High-Frequency/High-Speed Electronic Fabric Project (RMB 2.72 billion); (ii) the F07 Equipment Upgrade and Technological Transformation Project (RMB 790 million); (iii) the Pilot Technical Development Project for AI-Application Ultra-Low-Dielectric-Loss Electronic-Q Fabric; and (iv) working capital supplementation.

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