Jihua Group’s Recent Developments Amidst a Widespread Dye‑Price Surge
Jihua Group (Shanghai Stock Exchange: 603980) is a leading Chinese chemicals company that designs, manufactures, and exports a range of dyes—including disperse, reactive, and ECO series dyes—as well as specialty coatings and polyurethane products. The company’s share price and corporate structure have experienced notable movements in recent days, driven in part by a broader industry‑wide price adjustment.
1. Share‑Price Movements and Market Reaction
Strong Performance in the Dye Segment On 9 February 2026, Jihua Group’s shares achieved a limit‑up (涨停), reflecting the robust demand for disperse dyes amid a sector‑wide price hike. The company’s stock was among the group of dye‑related firms that saw significant gains, including Shuntoushuai and Yabang Shares, which also reached the daily upper price limit.
Index Performance Context The overall market on 9 February was buoyant, with the Shanghai Composite Index rising 1.17 % and the Shenzhen Component Index up 2.07 %. Within this environment, the chemicals sector stood out for its activity, with Jihua Group’s price increase contributing to the sector’s upward momentum.
2. Corporate Governance Change
Planned Transfer of Majority Shares In an announcement on 9 February 2026, Jihua Group disclosed that Jianghuai Machine & Electrical Equipment Co. and Shao Hui will each transfer a portion of their holdings to Tonglu Junheng Equity Investment Partnership (Limited Partnership). The transfer totals 202,308,716 shares, representing 29.89 % of the company’s issued capital. Post‑transfer, Jianghuai will no longer hold any shares, while Shao Hui’s stake will decrease from 3.73 % to 2.80 %. The partnership will become the company’s controlling shareholder, with Suer Tian as the new actual controller.
Pending Formalities The change of control is subject to approval at the next shareholders’ meeting, compliance checks by the Shanghai Stock Exchange, and registration with China Securities Depository and Clearing Corporation. Until these steps are completed, the transfer remains in progress.
3. Industry Context: The Disperse Dye Price Increase
Sector-Wide Price Adjustments The dye industry is experiencing a coordinated price increase, triggered by a surge in the cost of the key intermediate reducing agent, which has risen from 20 000 CNY/ton to 70 000 CNY/ton. Leading dye producers—including Fuleent and Longsheng—have announced uniform price hikes of 2 000 CNY per ton for major products such as Disperse Black and Blue HW‑SR. The hikes are expected to raise prices by roughly 10 %.
Impact on Jihua Group Although the specific price adjustment for Jihua Group’s products was not disclosed, the company’s share price surge indicates that investors anticipate a similar response to the industry trend. Jihua’s diversified product portfolio and export operations position it to capture the upside from higher prices.
4. Financial Snapshot (as of 5 Feb 2026)
| Metric | Value |
|---|---|
| Close Price | 6.55 CNY |
| 52‑Week High | 6.75 CNY |
| 52‑Week Low | 3.62 CNY |
| Market Capitalisation | 4.43 billion CNY |
| P/E Ratio | 79.78 |
These figures highlight Jihua Group’s valuation context against the backdrop of recent price volatility.
5. Outlook
The company’s upcoming shareholder meeting and regulatory approvals will determine the final structure of ownership. Meanwhile, the sustained upward pressure on dye prices, driven by upstream cost increases, is likely to continue supporting the company’s revenue and earnings prospects. Investors and analysts will monitor the execution of the share transfer and the company’s ability to translate higher input costs into improved profitability.
