Befar Group (601678) Q4 2025 earnings summary

Executive summary

• 2025 revenue rose 45.06% to RMB 14.84bn, while net income attributable to shareholders increased 2.75% to RMB 225.3m; operating cash flow strengthened sharply to RMB 2.87bn.

• Growth was driven mainly by the C3/C4 complex ramp-up and higher PO and MTBE volumes; lower raw-material and energy costs supported product gross profit.

• Q4 revenue was RMB 3.69bn, attributable net income RMB 33.0m, adjusted net income RMB 14.9m, and operating cash flow RMB 1.38bn.

Financial highlights

• Revenue reached RMB 14.84bn, up 45.06% YoY; operating costs rose 40.39% to RMB 13.31bn.

• Profit before tax was RMB 342.8m; net income attributable to shareholders was RMB 225.3m, up 2.75% YoY.

• Excluding non-recurring items, attributable net income was RMB 110.7m, down 49.33% YoY; non-recurring gains totaled RMB 114.6m.

• Operating cash flow increased to RMB 2.87bn from RMB 486.1m; investing cash outflow narrowed to RMB 727.1m, while financing cash flow was an outflow of RMB 891.0m.

• Research and development expense rose 43.95% to RMB 173.2m; adjusted net income excluding share-based payment expenses was RMB 256.3m, up 33.93%.

Outlook and guidance

• 2026 production targets include caustic soda 780,000 tonnes, propylene oxide 549,300 tonnes, MTBE 683,800 tonnes, and electronic-grade hydrofluoric acid 6,600 tonnes.

• Priorities include completing the C4 downstream integration project startup, advancing the 240,000-tonne polyether polyol project, and targeting handover of the Yangxin electronic chemicals base by year-end.

• Plans include progressing a 260MW integrated source-grid-load-storage project toward wind-power grid connection and building a 20,000-tonne caustic soda project.

• Strategic priorities include technology-led growth, operational cost control, overseas expansion, and pursuing an H-share listing to create an A+H financing platform.