润丰股份：2026年半年度报告说明（英文版）

Investor Presentation

H1 2026 report

Rainbow all about growing

Rainbow Global

Spain Manufacturing Base

Weifang, Qingdao, Ningxia Manufacturing Bases

U.S. Houston, Champaign Manufacturing Bases

Subsidiary / Office

R&D Centers

Weifang, Jinan R&D Centers

Weifang Process Development Center

Argentina Manufacturing Base

10

100+

Factories

Operational Countries

140+

380+

Independent Patents

5000+

Staffs Globally

Overseas Subsidiaries

9400+

Registrations Globally

2026 Crop Protection Industry Status

Active ingredient prices experienced short-term volatility.

Supply-side competition intensifies, pressuring margins; leading companies see channel gross margin recovery.

Exports remain resilient, supported by continued policy optimization and accelerating formulation product exports.

Channels increasingly favor low inventory and delayed procurement.

Generic crop protection share rises, driving Chinese exporters' global growth.

Falling end-user returns and rising credit risk along the industrial chain.

Industry Overview

Export Volume Trends of Products Under China HS Code 3808

Industry Overview

Export Value Trends of Products Under China HS Code 3808

Industry Overview

Export Unit Price Trends of Products Under China HS Code 3808

Performance Overview

Revenue Growing Steadily

Revenue at RMB 7.442 billion, +13.95% YoY

Growth driven by deeper global market penetration (rapid expansion in North America and the EU) and resilient existing business, further strengthening the operating base.

Gross Margin Rate Steadily Improving

Gross margin increased to 24.29% (+2.87pp YoY)

Driven by a rising Model C business and improved margins across all product lines, reflecting steady progress in profit structure optimization.

EBITDA Increasing Significantly

EBITDA at RMB 1.173 billion, +43.82% YoY, growing faster than revenue, confirming the strengthening of high-quality growth drivers.

Core Business Profitability Improving Significantly

Net profit attributable to the parent at RMB 502 million, down 9.67% YoY, impacted by exchange rate fluctuations and changes in fair value of FX derivatives.

Excluding FX-related impacts, core business profitability improved significantly YoY, reflecting the continued strengthening of core competitiveness.

Performance Overview

Revenue Up YoY, Reflecting Continued Market Expansion and Deepening Success

Revenue Comparison

Early-stage expansion with steadily growing revenue

Deeper market penetration driving steady growth

Revenue slightly down YoY due to delayed procurement season

Performance Overview

Gross Margin Rate Up YoY, Reflecting Improving Earnings Quality.

Gross Margin Rate Comparison

1. Model C revenue increased by 7.63 pct Rising from 40.14% to 47.77%, with clear contribution from business mix optimization

2. Non-herbicide category up by 0.91pct Rising from 27.95% to 28.86%, achieving more balanced growth

3. North America/Europe high-value markets steadily ramping up In early expansion stage, with sustained growth momentum

4. In-House active ingredients projects delivered, smart manufacturing cost reductions evident In-house active ingredients technical upgrades and new project execution, combined with lean smart manufacturing in formulation, serve as a dual-engine driving cost reduction and efficiency gains. Gross margins improved across all business models and product categories

Performance Overview

EBITDA And EBITDA Margin Up YoY, Core Operating Efficiency Strengthening

EBITDA Comparison

Unit: RMB million

EBITDA Margin Comparison

Net Profit Attributable To The Owner Of Parent Under Short-Term Pressure, FX Impacts Main Driver Of YoY Variance

Net Profit Attributable to the owner of Parent Comparison

Net Profit Attributable to the owner of Parent Net Profit Comparison(Excluding FX Impact)

Unit: RMB million

Financial Highlights

H1 2026 Financial Performance Analysis (YoY)

• H1 2026: Net Profit Attributable to the Parent at approximately RMB 502 million. Exchange rate-driven forex and hedging losses reduced profit by approximately RMB 234 million. Excluding this, adjusted Net Profit Attributable to the Parent at approximately RMB 736 million.

\- H1 2025: Net Profit Attributable to the Parent at approximately RMB 556 million. Exchange rate-driven forex and hedging gains increased profit by approximately RMB 222 million. Excluding this, adjusted Net Profit Attributable to the Parent at approximately RMB 334 million.

Financial Highlights

H1 2026 Financial Performance Analysis (YoY)

Financial Highlights

Q2 2026 Financial Performance Analysis (YoY)

• Q2 2026: Net Profit Attributable to the Parent at approximately RMB 337 million. Exchange rate-driven forex and hedging losses reduced profit by approximately RMB 115 million. Excluding this, adjusted Net Profit Attributable to the Parent at approximately RMB 452 million.

• Q2 2025: Net Profit Attributable to the Parent at approximately RMB 299 million. Exchange rate-driven forex and hedging gains increased profit by approximately RMB 59 million. Excluding this, adjusted Net Profit Attributable to the Parent at approximately RMB 240 million.

Financial Highlights

Q2 2026 Financial Performance Analysis (YoY)

Financial Highlights

H1 2026 New Global Registration Status by Geographic Segment

Financial Highlights

Total Global Registration Status by Geographic Segment as of June 2026

Financial Highlights

H1 2026 Revenue Status by Geographic Segment

H1 2025

Financial Highlights

Revenue Share by Segment (YoY)

Revenue by Segment (H1)

Financial Highlights

Gross Margin Rate Comparison by Segment

Financial Highlights

Revenue by Product Category

Revenue by Product Category (H1)

Financial Highlights

Gross Margin Rate Comparison by Product Category

Gross Margin Rate by Product Category (H1)

2025-2029 GLOBAL Brand Key Objective:

We are a China-born multinational crop protection company with a global footprint.

Building on This Goal:

• Significantly enhanced social media content quality across all platforms and substantially increased digital ad spend.

\- Advanced "factory marketing" initiatives, improving facility appearance and global visitor reception to elevate the overall global brand image.

2.1. Updating the Four Growth Pillars and Seed Business

The 2026 strategic review further refined the "Four Growth Pillars" and "Seed Business."

Four Growth Pillars:

\- Strengthening brand building and pursuing a multi-business-model approach under a unified platform (with particular emphasis on accelerating Model C business)

• Accelerating expansion into high-value markets, particularly the EU and North America

• Increasing the revenue share of insecticides and fungicides

\- Forward-looking positioning and timely, successful commercialization of key newer active ingredients

Seed Business:

• Biologicals (Rainbow Bio)

• Non-crop products

• Exploration of innovative active ingredients

2.2. Strengthening Brand Building, Model C Business Accelerating Growth

The global brand communication strategy has delivered initial results, with LinkedIn followers surpassing 120,000.

Model C business revenue share increased from 40.14% in H1 2025 to 47.77% in the reporting period, with gross margin rising from 30.21% to 32.97%, underscoring the growing strength of the high-margin business model.

2.3. Accelerating Growth in EU and North America Businesses

The combined revenue share of EU and North America operations increased significantly from 14.08% in H1 2025 to 19.48% in the reporting period, reflecting the company's growing penetration in high-barrier, high-value markets.

2.4. Increasing Insecticide and Fungicide Business

The combined revenue share of insecticides and fungicides rose from 26.59% in H1 2025 to 26.93% in the reporting period, reflecting continued optimization and a more balanced product mix.

2.5. Seed Business Steady Progress

Rainbow Bio:

Following a "Model B first for light-structure entry, then Model C" approach, the company is piloting operations in target markets with favorable conditions, aiming to achieve self-sustaining growth while continuously refining localized operational methodologies.

NON CROP:

Currently in the global planning stage, with active research and identification efforts underway for target countries, market segments, and product portfolios.

Innovative Active Ingredients: Exploration and research continue to advance.

3.1. Strengthening the Performance Orientation toward Commercial Success

During the reporting period, the company adhered to the overarching principle of "Enhance Quality, Boost Efficiency" and comprehensively optimized organizational performance. By significantly increasing the weighting of operational quality metrics—including gross margin, net profit after tax, overdue accounts receivable, and long-term inventory—while correspondingly reducing the weighting of sales revenue, the company effectively steered frontline market behavior.

In addition, the company continued to deepen overseas organizational effectiveness initiatives, dynamically optimizing key roles such as general managers of overseas subsidiaries. This has effectively stimulated organizational vitality and operational performance.

3.2. Talent Strategy and Corporate Culture Confidence

The company remains committed to its talent strategy, embedding core values across the full "recruit, develop, deploy, retain" lifecycle. On the front line, we continue to deploy Chinese core staff as "upward-looking" ambassadors of strategy, culture, and brand, ensuring deep transmission of global strategy and corporate culture.

Currently, most Model C subsidiaries operate under a "Commissar + Commander" model (veteran Chinese expats paired with local leaders). This model significantly enhancing the company's cultural confidence in global operations.

On the talent development front, programs such as the "Frontline Team Member training" and "Rainbow Leadership Program" are accelerating the cultivation of outstanding "Rainbow Ambassadors" through hands-on practice, driving the team toward a "professional, credible, accountable, and collaborative" standard and continuously reinforcing the value consensus underpinning global operations.

3.3. Model C Subsidiary Delivers Stronger Operational Performance

The company's Model C subsidiaries have steady performance improvement over the past five years, delivering strong and sustainable results as the global operations system matures.

3.4. Forward-Looking Product Planning Ensures Timely First-Mover Registration of High-Value Products

Through forward-looking selection of key newer active ingredients, key newer formulations, and key differentiated formulations, the company takes the lead in global commercialization planning.

In H1 2026, the company secured over 500 new registrations (including 35 in the EU, 17 in the US, 18 in Canada, and 22 in Brazil). As of June 30, 2026, it held over 9,400 crop protection registrations globally, laying a solid foundation for early commercialization in core markets.

4.1 Establishing "First Generic Player for Important New Active Ingredients" as a Core Competency

The company recognizes that being the first generic player for important new active ingredients in core markets offers high commercial value and significant competitive barriers.

As one of the few global players with this capability, we have made this a strategic priority and established an end-to-end commercialization mechanism covering the entire value chain: screening, registration, R&D, manufacturing, supply, and market deployment.

Currently, approximately 30 selected key newer active ingredients are advancing steadily and rapidly through this process, in full alignment with the planned timeline.

4.2 Active Ingredient Synthesis Projects on Track

The company remains firmly committed to its active ingredient manufacturing plan, targeting an average of at least two new active ingredient synthesis projects commenced per year during the 2025–2029 strategic period.

All projects scheduled for 2026 and 2027 have been identified and are progressing steadily according to plan.

4.3 Forward-Looking Formulation Capacity Expansion to Ensure High-Quality, On-Time Delivery

To ensure high-quality, low-cost, and on-time delivery of global orders, the company is proactively expanding its formulation capacity.

\- The herbicide solid formulation workshop at the Weifang North Plant was commissioned in H1 2026;

\- The insecticide liquid formulation workshop at the Pingdu Plant is expected to come on stream in H2 2026.

The newly commissioned workshops have achieved significant upgrades in flexible production, continuous processing, automation, and intelligence, substantially improving production efficiency and product consistency. This provides strong capacity support for high-quality, fast delivery to global markets.

During the reporting period, the RMB continued to appreciate, while currencies in countries such as Brazil, Argentina, Australia, Turkey, Russia, and India experienced significant volatility. In H1 2026, exchange rate fluctuations reduced profit by approximately RMB 234 million (compared to a profit increase of approximately RMB 222 million in H1 2025).

Compounded by weak commodity prices, rising financing costs, and extreme weather, farm-gate returns for growers in key crop protection markets such as Brazil and Argentina have declined or even turned negative, while channel credit risks and default rates remain elevated, weighing on overall performance.

2026 Global Crop Protection Industry Outlook

2026 Global Crop Protection Industry Outlook

Generic Crop Protection Share Expected to Rise Further, Structural Opportunities Emerging

As global agricultural input costs rise and growers place greater emphasis on input-output efficiency, cost-effective generic crop protection products are expected to gain more traction, with market share set to increase further. The global market landscape continues to tilt toward generics, presenting clear structural opportunities for leading Chinese exporters.

Industry Competition Evolving into a Comprehensive Capability Contest; Concentration Among Leading Players Expected to Accelerate

As more Chinese companies accelerate their international expansion, global market share will increasingly concentrate among players with a complete industrial chain, strong registration capabilities, and a global marketing network. Industry competition is shifting from a pure price game to a comprehensive contest of full-chain coordination, brand building, and global operational capabilities.

Policy and Trade Environment Remain Complex and Fluid, Making Global Operational Capabilities Increasingly Critical

Changes in trade policies, tariffs, access regulations, and export rebate adjustments across multiple countries may periodically disrupt international trade patterns and market supply-demand dynamics. Amid rising uncertainty in the operating environment, companies' globally-localized operational capabilities will serve as a core moat to weather external risks and sustain steady growth.

2026 Business Outlook

Steadfast Execution of Strategic Plan, Core Operating Metrics on a Steady Upward Trajectory

In line with the 2025-2029 mid-term strategic plan and 2026 targets, the company will continue to focus on "enhance quality, boost efficiency." On a trajectory of sustained operational quality improvement, core metrics including full-year parent net profit, gross margin, EBITDA, and revenue are expected to deliver steady growth.

Prioritizing Operational Quality over Blind Scale Expansion

Amid a complex environment of continued industry supply growth, active market competition, declining farm-gate returns, and rising credit risk along the industrial chain, the company will continue to adhere to its core principle of "enhancing quality and boosting efficiency." With commercial success as the guiding objective, the company will place operational quality improvement at the center of its efforts, refrain from pursuing simple revenue scale expansion, and continuously consolidate its core competitive advantages.

Business Mix Optimization to Drive Continued Gross Margin Expansion

With the parallel development of multiple business models under the Business Solution Platform—particularly the continued growth of Model C revenue share—alongside an increasing contribution from high-value markets such as North America and the EU, and the gradual approval of high-value product registrations in key global markets, the company's profit structure is set to further improve, positioning gross margin for a continued upward trend.

2026 Business Outlook

First Generic Player for Important New Active Ingredients and Advanced Manufacturing to Fuel New Growth Drivers

The company has identified "First Generic Player for Important New Active Ingredients" as a core competency and a new growth pillar, with several such ingredients already achieving successful first-to-market generic launches in key markets this year.

At the same time, R&D-driven advanced manufacturing capabilities continue to advance, effectively helping the company increase global market share, enhance industry influence, and further improve overall gross margin levels.

Accelerating AI Adoption to Drive Organizational Efficiency

The company is leveraging AI as a key driver of organizational efficiency:

1. Complete AI use-case mapping and incorporate advanced AI proficiency into future job qualification standards to encourage broad adoption.

2. Scale up the promotion of best practices, embedding AI into workflows across registration documentation, market intelligence, supply chain analytics, financial data processing, and dashboard development.

3. Introduce cost-effective AI foundation models with standardized usage protocols, providing all employees with a unified and accessible application gateway.

Currently, AI has been progressively integrated into multiple core business processes, with marked improvements in AI awareness and organizational efficiency across the workforce.

Geopolitical Tensions, FX Volatility, and Trade Policy Complexity: Strengthening Risk Management Capabilities

Geopolitical developments, crude oil prices, and major currency exchange rate fluctuations remain key market variables that may periodically disrupt industry chain costs and supply-demand dynamics, amplify price volatility, and increase the difficulty of pricing and inventory management. Meanwhile, changes in tariffs, access rules, and export rebate policies across multiple countries may also periodically affect international trade patterns. In the face of growing uncertainty in the operating environment, the company will continue to strengthen its global operational and risk management capabilities to ensure steady business performance.

"Enhance Quality, Boost Efficiency"

Mid-Term Strategic Plan (2025-2029)-2026 Update

4 Strategic Growth Pillars

Foster Multi-business Model Synergy on Business Solution Platform & Increase Model C Business

Accelerating Europe & North America High-Value Market Expansion

Increased Insecticide & Fungicide Business

Forward-Looking Positioning and Timely Commercialization of important New Active Ingredients

Mid-Term Strategic Plan (2025-2029)-2026 Update

6 Critical Tasks

1. Proactive Product Planning & Commercialization: Through forward-looking product planning, identify important products—especially important new active ingredients and differentiated products. Spearhead global registration layout, strategic coordination, and commercialization readiness to ensure these products achieve regulatory approval and successful commercialization ahead of peers in selected core and important countries.

R&D Pipeline & Self-synthesized Strategy: Drive the R&D, manufacturing, and supply of important new active ingredients through rigorous pipeline management, aiming to be the first generic player in their priority countries. Simultaneously, execute the development of other planned self-synthesized active ingredients and continuously deepen our expertise in existing self-synthesized active ingredients.

"Four-in-one" Formulation development System: Operate and continuously refine a scenario-based, "four-in-one" formulation development system. Enhance highly adaptable and efficiently collaborative formulation capabilities to support product registration, delivery, and successful commercialization.

Mid-Term Strategic Plan (2025-2029)-2026 Update

6 Critical Tasks

Multi-Business Model Balanced Growth: Uphold a multi-business-model approach based on business solution platform, continuously strengthen brand building, and focus on improving operational quality, driving rapid growth in start-up core countries, and ensuring the timely successful commercialization of important—especially important new products to guarantee healthy and balanced business growth.

2.

3. Proactive Product Planning & Commercialization: Through forward-looking product planning, identify important products—especially important new active ingredients and differentiated products. Spearhead global registration layout, strategic coordination, and commercialization readiness to ensure these products achieve regulatory approval and successful commercialization ahead of peers in selected core and important countries. Mid-Term Strategic Plan (2025-2029)-2026 Update

4.

5. Supply Chain Product Manager & Resilient Supply: Empower Supply Chain Product Managers as the business engine. Achieve rapid response and decisive, accurate decision-making through deep, end-to-end understanding of the entire industry chain. Implement differentiated supply assurance for important new, important commodity, important niche active ingredients to build a safe, sustainable, and competitive global supply chain.

Lean Operations & Agile Delivery: Leverage forward-looking capacity planning and a lean operational system. Scientifically schedule orders and strictly control end-to-end quality and costs, ensuring high-quality, cost-effective, and fast, on-time global delivery through efficient and agile fulfillment capabilities.

Mid-Term Strategic Plan (2025-2029)-2026 Update

5 Key Capability Gaps

1

Global Operations Management

2

Successful Commercialization of Differentiated Products

3

First Generic Player for Important New Active Ingredients

Brand Business Development

Product Manager-Driven Global Supply Chain

To be a Global Leading Crop Protection Company

THANK YOU