Sichuan Development Lomon Co Ltd

Fulin Precision and Chuanfa Lomon announced the termination of their subsidiaries' investment cooperation on a project with an annual output of 175,000 tonnes of lithium iron phosphate. Fulin Precision stated that the joint venture company under the original agreement had not yet been established, and the cooperation could not meet the practical needs for rapid project advancement in terms of implementation path, resource allocation, and decision-making efficiency. Chuanfa Lomon said the termination was due to changes in the market environment and uncertainties in project operations. Staff from the securities departments of both companies said the decision was reached through mutual agreement. Fulin Precision also disclosed that its project with an annual output of 350,000 tonnes of new high-compaction-density lithium iron phosphate has now commenced production, with production line construction and commissioning progressing as planned, and the company does not rely on the original partner.

Chuanfa Lomon released its 2026 interim report, with net profit attributable to the parent company at 226 million yuan, a decrease of 5.39% compared with the same period last year. The company's total operating revenue was 5.397 billion yuan, up 14.82% year-on-year, achieving growth for three consecutive years. Net cash outflow from operating activities was 71.011 million yuan, an increase of 423 million yuan in net inflow compared with the same period last year. The company's latest asset-liability ratio was 55.74%, gross margin was 14.59%, and diluted earnings per share was 0.12 yuan.

Chuanfa Lomon disclosed its 2026 semi-annual report on August 18. In the first half of the year, it achieved total operating revenue of 5.397 billion yuan, up 14.82 percent year on year. Net profit attributable to the parent company was 226 million yuan, down 5.39 percent year on year. Non-GAAP net profit was 256 million yuan, up 7.36 percent year on year. Net cash flow from operating activities was negative 71.011 million yuan, compared with negative 494 million yuan in the same period last year. Basic earnings per share were 0.12 yuan, and the weighted average return on equity was 2.33 percent. As of the end of the first half of 2026, the company's inventory book value was 2.188 billion yuan, accounting for 22.63 percent of net assets, an increase of 563 million yuan from the end of the previous year. The semi-annual report shows that the largest shareholder, Sichuan Advanced Materials Industry Investment Group, pledged 242 million company shares, accounting for 49.93 percent of its total holdings.

Chuanfa Lomon announced that the Baizhu phosphate mine under its wholly-owned grandchild company, Hu Lin Company, has been shut down for rectification following a roof fall accident, with the resumption date postponed from the originally planned August 15 to October 15. The delay is expected to reduce current-period revenue by 136 million yuan, accounting for about 1.4 percent of 2025 revenue, and reduce net profit by 45 million yuan, accounting for about 10.9 percent of 2025 net profit attributable to the parent company. The company stated that this matter will not have a material impact on its continuing operations.