Xinxiang Richful Lube Additive Co. Ltd. earned a healthy profit in the first six months of 2026 even after the company fell foul of European Union sanctions for doing business with Russia. The results show the domestic market accounted for much of that growth, driven by increased demand from Chinese lubricant manufacturers seeking local supply, according to the research assessment.
The financial results come less than three months after the EU put Richful on its sanctions list in mid-June. The EU identified the company as an entity supporting Russia’s military-industrial complex. The EU said Richful supplied chemical additives for mechanical lubricants used by the Russian military.
Richful has since challenged the designation and has told customers that it categorically rejects the allegations as factually unfounded, according to industry reporting based on the company’s disclosures. It also threatened to take legal action against the decision.
Net profit attributable to shareholders in the first half of the year was up by 12.1% year on year to CNY414.8 million (U.S.$61.7 million), as revenue rose 16.8% to CNY1.94 billion, according to the company’s half-year report filed with the Shenzhen Stock Exchange on Aug. 26.
Lubricant additives accounted for CNY1.88 billion of revenue, or 96.6% of the company’s total. Domestic sales rose 75.6% to CNY899 million, while overseas revenue fell 9.3% to CNY1.04 billion. A securities research note attributed the weaker export performance to geopolitical disruption and the appreciation of the Chinese yuan.