Shangtai Technology (001301.SZ) reported strong top-line growth but weaker profitability in its 2026 interim results, with first-half revenue rising 33.11% year on year to 4.51 billion yuan, about $669.1 million, while net profit attributable to shareholders fell 16.60% to 399.72 million yuan, about $59.3 million. Basic earnings per share were 1.10 yuan. The company said performance was driven mainly by anode materials sales as demand from energy storage batteries stayed strong and power batteries posted steady growth, leaving some products in short supply and prompting a higher share of outsourced processing procurement to meet orders. Profitability came under pressure as coke-based raw material prices rose amid geopolitical conflict and commodity volatility, while outsourced graphitization processing costs also climbed. With product price transmission lagging upstream cost increases, anode material gross margins fell year on year. The carbon products segment also weakened as higher raw material costs sharply reduced margins on graphitized coke products. Shangtai said investors should watch raw material trends, outsourced processing costs and whether integrated capacity expansion can reduce reliance on external processing and help restore profitability.