Dongyue Group (00189) saw its share price climb over 13% during intraday trading before settling to a gain of 10.54%, with shares currently trading at HKD 14.58 and turnover reaching HKD 681 million.

On August 20, Dongyue Group released its interim results for fiscal 2026. During the period, the group recorded revenue of RMB 8.06 billion, representing an 8% year-on-year increase. Profit attributable to owners of the company stood at RMB 1.027 billion, up 31.84% compared to the same period last year.

During the review period, driven by the overall market momentum in the fluorosilicone industry, the group saw price increases across several of its core products at varying magnitudes. In the first half of the year, multiple key projects were completed and commenced production, including the new energy center project and the R32 refrigerant capacity expansion project.

According to a research report from Industrial Securities, domestic appliance sales faced pressure due to a high comparison base, reduced government subsidies, and channel inventory buildup. Exports were also constrained by geopolitical disruptions. However, long-term contract prices between upstream manufacturers and air conditioning producers exceeded expectations this year. Should the Strait open up for refrigerant exports in the second half of the year, it would directly benefit the sector. Refrigerant exports typically exhibit strong seasonality, with shipments concentrated in Q3 and Q4. This year also marks the final year of the baseline for the second batch of national quotas under the A5 agreement. If the Strait opens, there would be incentive to secure baseline quotas, particularly benefiting high-GWP products.