Befar Group (601678) Q2 2025 earnings summary

Executive summary

• H1 2025 revenue rose 61.36% YoY to RMB 7.354bn, mainly as the new PO/MTBE facilities ramped up; attributable net income increased 6.01% to RMB 111.5m. The interim financial statements are unaudited.

• Reported earnings included RMB 124.7m of non-recurring gains; excluding these items, attributable net income was a loss of RMB 13.3m.

Financial highlights

• Operating income was RMB 139.9m versus RMB 112.0m in H1 2024; total profit was RMB 157.7m, up 42.57% YoY.

• Operating cash flow increased to RMB 1.312bn from RMB 228.8m, supported by commercial production of the C3/C4 project and higher VAT refunds.

• Operating costs rose 69.62% YoY to RMB 6.728bn, faster than revenue growth; financial expenses increased 45.31% to RMB 193.1m, reflecting higher interest expense and FX effects.

Outlook and guidance

• Strategy centers on strategic expansion, technology innovation and lean operations; management said H1 execution strengthened resilience and laid groundwork for full-year objectives.

• The regional hazardous-waste treatment center advanced through preliminary procedures; the pilot base design was completed, and the high-end electronic chemicals project continued site preparation and long-lead equipment discussions.

• The C4 downstream integration project completed 90% model review, with control-room and substation structures topped out; the FHPECH hydrogen-peroxide ECH process received its first industrial technology license.