Fuxiang Shares: Electrolyte Additive Sales Volume and Prices Surge, Q1-Q3 Net Profit Expected to Rise Over 6-Fold

Fuxiang Co., Ltd. recently disclosed during an institutional investor survey that it expects to achieve net profit attributable to shareholders of listed company between 350 million yuan and 430 million yuan for the first three quarters of 2026, representing a year-on-year increase of 658% to 785%.

For the third quarter alone, the company projects net profit attributable to shareholders of listed company in the range of 173.0566 million yuan to 253.0566 million yuan, a sequential increase of 50% to 119% compared to the second quarter.

Key Growth Driver: New Energy Electrolyte Additives

The primary driver of this growth is the company's new energy lithium battery electrolyte additive products, which have experienced simultaneous increases in both sales volume and price. This has propelled a substantial performance turnaround, shifting the company from losses to profits. The new energy business has become the core engine of the company's growth.

Industry Pricing Data

As of September 20, 2026, according to data from Baichuan Yingfu:

• VC (Vinylene Carbonate) product price: 235,000 yuan/ton
• FEC (Fluoroethylene Carbonate) product price: 84,000 yuan/ton

Rationale for FEC Capacity Expansion

The company's decision to expand FEC production capacity is based on two key considerations:

1. Aligning with Industry Trends and Growing Market Demand

Driven by the rise of the energy storage market, rapid expansion of the power battery market, and the continuous development of emerging downstream applications, the lithium battery market is expected to maintain rapid growth in the coming years.

According to Zhishi Consulting:

• The global lithium battery electrolyte additive market is projected to grow from 135,400 tons in 2025 to 391,500 tons by 2030
• This represents a compound annual growth rate (CAGR) of 23.66%

In particular, as the penetration rate of high-energy-density batteries such as high-nickel ternary and silicon-carbon anodes continues to rise, demand for FEC is showing an upward trend.

Additionally, a research report from Galaxy Securities indicates that the further promotion of fast-charging technology and silicon-based anode technology, along with the development of technical routes such as 3C lithium batteries, semi-solid-state batteries, and solid-state batteries, will all benefit FEC product demand growth. The report estimates that FEC demand growth in 2026 will reach 29.5%.

2. Optimizing Product Portfolio and Strengthening Industry Leadership

Expanding FEC production is also a strategic move to optimize the company's product layout and consolidate its leading position in the industry. Upon project completion, the company will achieve a balanced dual-core product layout of VC and FEC, with a further leap in production capacity scale. This will enable:

• Lower comprehensive production costs for FEC through economies of scale
• Enhanced product profitability

Furthermore, the company has established stable cooperation with leading electrolyte manufacturers such as Tinci Materials and Capchem, and has passed BYD's certification to supply products. The new capacity will allow the company to quickly meet downstream customers' incremental demand for high-energy-density electrolytes, including silicon-carbon and high-nickel ternary formulations, thereby strengthening long-term customer relationships and solidifying its market share and industry position in the electrolyte additive sector.