Solid growth trajectory established, with substantive profitability enhancement. On August 26, Hangzhou Huaguang Advanced Welding Materials Co.,Ltd. (688379) released its 2026 semi-annual report. During the first half of the year, the company achieved operating revenue of RMB 2.309 billion, a substantial year-on-year increase of 91.44%; non-GAAP net profit reached RMB 89.6973 million, surging 103.78% year-on-year. The more notable marginal change occurred in the second quarter: single-quarter revenue of RMB 1.230 billion, still achieving 98.37% year-on-year growth on top of a high base from the same period last year, with a sequential increase of 14.09%; non-GAAP net profit of RMB 53.4966 million, soaring 112.25% year-on-year and 47.78% sequentially. The endogenous growth momentum of Hangzhou Huaguang Advanced Welding Materials Co.,Ltd.'s core business has been fully validated, with earnings release accelerating quarter by quarter.

In terms of shareholder returns, the company plans to distribute a cash dividend of RMB 1.10 (pre-tax) per 10 shares to all shareholders, based on a total share capital of 92.6899 million shares after deducting shares held in the buyback account, totaling approximately RMB 10.1959 million in cash dividends, representing 11.12% of the first-half net profit attributable to the parent company, balancing shareholder returns while achieving high earnings growth.

Traditional strengths reinforce the foundation, while emerging tracks contribute incremental growth. As a leading enterprise in China's brazing materials industry, Hangzhou Huaguang Advanced Welding Materials Co.,Ltd. adhered to its development strategy of "consolidating the foundation with traditional advantageous businesses, achieving breakthrough growth in emerging businesses, realizing overseas production capacity, and continuously iterating and upgrading technology R&D" in the first half of the year, with its business structure continuously optimized. In traditional advantageous areas, the company leveraged the competitive advantages of its new green brazing material intelligent manufacturing production line in production efficiency, quality stability, and cost control, further increasing its supply share to core customers. In the first half, revenue from the refrigeration sector grew 65.31% year-on-year, and the power and electrical sector grew 58.32% year-on-year, with the traditional industry foundation remaining solid and improving.

The more compelling highlight is the explosive growth in emerging tracks. In the new energy sector, Hangzhou Huaguang Advanced Welding Materials Co.,Ltd. focused on brazing material demand for scenarios such as three-electric systems and thermal management systems, with revenue in the new energy vehicle sector surging 141.13% year-on-year. Meanwhile, the company seized opportunities from the development of domestic electronics and computing infrastructure construction, tapping into demand for precision connections across markets including consumer electronics, automotive electronics, PCBA, and data center liquid cooling. Products such as electronic paste, tin-based brazing materials for microelectronics welding, and precision copper-based brazing materials continued to ramp up, with revenue in the electronics sector growing 177.37% year-on-year. In the first half, tin-based brazing material revenue reached RMB 276 million, a 42.74% year-on-year increase on the back of an optimized product sales structure. Additionally, leveraging its core technology and production capacity advantages, revenue from precision brazing materials for data center liquid cooling further increased, reaching RMB 216 million in the first half of 2026, accounting for 9.36% of total operating revenue, making it a new engine driving the company's performance growth.

From a revenue structure perspective, in the first half, refrigeration and HVAC accounted for 37.82%, electronics 29.78%, power and electrical 19.45%, and new energy vehicles 6.61%. This diversified business layout effectively mitigated cyclical volatility risks from any single industry while driving a profound shift in the company's overall development logic from cycle-driven to growth-driven.

The "Huaguang Goes Global" strategy is being implemented, with overseas production capacity being released. Centered on the "Huaguang Goes Global" internationalization strategy, the company achieved breakthrough progress in overseas market expansion. In the first half, Hangzhou Huaguang Advanced Welding Materials Co.,Ltd.'s overseas business covered 60 countries and regions, achieving operating revenue of RMB 171 million, a substantial 81.72% year-on-year increase, successfully expanding multiple strategic head customers in the industry. In terms of production capacity layout, the company's Thailand Phase 1 plant with 1,000 tons of capacity has been completed and put into operation, covering full product categories including copper-based brazing materials, silver brazing materials, aluminum-based brazing materials, and tin-based brazing materials, and is currently in the intensive customer validation phase. The Thailand plant's establishment enables localized production and delivery for global customers, effectively shortening delivery cycles and getting closer to overseas end markets, laying a solid production capacity foundation for the company's continued overseas business growth.

R&D investment nearly doubled, with technology leading industry iteration. Hangzhou Huaguang Advanced Welding Materials Co.,Ltd. has always placed technological innovation at its strategic core. In the first half, the company's R&D investment reached RMB 63.8252 million, a substantial 95.79% year-on-year increase, with R&D investment accounting for 2.76% of operating revenue. Sustained R&D investment has yielded fruitful results: the project "Precision Brazing Manufacturing Technology and Application for Heterogeneous Complex Multi-Cavity Components," involving the company's chairman and senior engineer Jin Limei, won a second prize in the National Science and Technology Progress Award; the company also successfully obtained approval to establish a national-level postdoctoral research workstation, achieving an upgrade from provincial to national level. In terms of product and technology layout, the company continues to optimize electronic paste and tin solder paste formulations and processes, accelerating the industrialization of products such as composite brazing materials, active brazing materials, paste brazing materials, and precision solder preforms; it is also actively advancing the application validation of nickel-based solders in frontier fields such as liquid cooling and drones. The company is also forward-looking in exploring the integration of AI technology with brazing material R&D, building an intelligent R&D system to reserve momentum for future technological breakthroughs.

ESG rating ranks among the industry's top tier, with sustainable development empowering long-term value. While achieving positive operational performance, Hangzhou Huaguang Advanced Welding Materials Co.,Ltd. is also contemplating the direction and path of its long-term development. The company deeply integrates ESG concepts throughout its entire chain of R&D innovation, production and manufacturing, supply chain management, and customer service, responding to capital market expectations for listed companies' sustainable development through concrete actions. Thanks to its outstanding performance in environmental, social, and corporate governance areas, the company's sustainable development practices have received high praise from the capital market: the company's ESG rating reached AA level, Huazheng Index gave it the highest AAA rating, and Dili Company's governance score was 8 points, placing it in the first tier among more than 5,000 participating companies, fully demonstrating the company's industry-leading position in sustainable development. These achievements stem from years of deep cultivation in green manufacturing. The company's green high-flow cored silver brazing material has been included in the "Zhejiang Province Green Low-Carbon Technology Promotion Catalog" and was awarded the "National Green Factory" title in 2026. On the product front, the company continues to advance R&D of environmentally friendly products such as silver-saving brazing materials, lead-free cadmium-free green brazing materials, and lead-free silver paste, effectively reducing environmental pressure across the entire chain; innovative products such as vacuum brazing materials, composite brazing materials, and preformed brazing materials respectively meet diverse needs including clean production for high-end equipment, automated high-efficiency brazing, and precision structural design, while continuously cast brazing alloy and integrally formed extruded products have become industry benchmarks with their precise composition, uniform structure, and stable performance.

High-level ESG practices have not only earned capital market recognition but are also empowering high-quality corporate development at a deeper level. On one hand, excellent ESG ratings help attract long-term capital allocation, enhancing the company's valuation premium and liquidity in the capital market, better realizing the capital market's price discovery function. On the other hand, the green and low-carbon product matrix and responsible supply chain management system have significantly strengthened strategic stickiness with head customers such as Gree Electric Appliances, Midea Group, and Sanhua Intelligent Controls, forming differentiated competitive advantages amid the green transformation trend of the global industrial chain. Furthermore, the intelligent manufacturing system deeply integrating digitalization and greenization—from comprehensive integration of core systems such as SAP, MES, APS, WMS, and PLM, to the construction of data platforms, computing platforms, and AI application development platforms in future factories—is driving the company's leap toward intelligent operations, achieving the multiple goals of management quality improvement, efficiency enhancement, and energy consumption reduction.

Looking ahead to the second half of the year, Hangzhou Huaguang Advanced Welding Materials Co.,Ltd. is expected to continue consolidating its leading position in the brazing materials industry amid the industry's major trend of upgrading toward high performance, high precision, and greenization, steadily advancing toward becoming an internationally leading professional provider of functional joining materials and solutions, driven by the dual engines of technological innovation and sustainable development.