Befar Group (601678) Q4 2024 earnings summary

Executive summary

• Revenue rose 40.00% YoY to RMB10.23bn, mainly as new PDH capacity lifted propylene sales and propane/butane trading; net profit attributable to shareholders fell 42.77% to RMB219.25m on lower product prices and margins.

• Operations emphasized cost control and stable plant utilization; sales of food-grade caustic soda, packaged trichloroethylene and tetrachloroethylene reached record highs.

• The financial statements received a standard unqualified audit opinion.

Financial highlights

• Operating costs increased 57.38% YoY to RMB9.48bn, exceeding revenue growth; operating profit declined 67.67% YoY.

• Q4 revenue was RMB2.66bn and attributable net profit was RMB30.02m; Q4 adjusted net profit was RMB32.19m.

• Operating cash flow declined 47.81% YoY to RMB486.06m; investing cash outflow was RMB1.76bn and financing cash inflow was RMB903.85m.

• Total assets rose 8.62% to RMB22.96bn at year-end, while net assets attributable to shareholders edged down 0.23% to RMB11.38bn.

Outlook and guidance

• 2025 production targets include 785,600 tonnes of caustic soda, 488,100 tonnes of propylene oxide, 449,300 tonnes of propylene and 664,800 tonnes of MTBE.

• Priorities for 2025 include bringing strategic projects forward, expanding R&D and technology commercialization, improving operating efficiency, controlling costs and adapting production, sales and procurement to market conditions.