China Sanjiang Fine Chemicals Company (2198) H1 2025 earnings summary

Executive summary

• Net profit attributable to equity holders surged 95.5% year-over-year to RMB301.1 million, driven by favorable market dynamics for key products, especially ethylene glycol (EG), improved spreads, and agile operational strategies.

• Gross profit margin improved by 0.9 percentage points to 5.1% compared to the same period in 2024, supported by higher ASPs and product mix optimization.

• Revenue declined 1.5% year-over-year to RMB9,105.7 million, but gross profit increased 20.2% to RMB464.6 million.

• The Board decided not to recommend an interim dividend for the six months ended 30 June 2025 to retain liquidity amid economic uncertainties.

Financial highlights

• Revenue for the first half of 2025 was RMB9,105.7 million, down 1.5% year-over-year.

• Net profit attributable to equity holders reached RMB301.1 million, up 95.5% year-over-year.

• Basic and diluted EPS were 26.01 fens, compared to 13.30 fens a year earlier.

• Gross profit was RMB464.6 million, up 20.2% year-over-year.

• Cash and cash equivalents at period end were RMB822.5 million, up from RMB564.3 million at the end of 2024.

Outlook and guidance

• Demand for EG, butadiene, and surfactants is expected to remain firm in the second half of 2025, with steady pricing for PP and EO and potential upside if downstream demand recovers.

• The Group will focus on high-value-added products and further downstream integration to enhance revenue resilience.

• Management remains cautious due to global economic uncertainty, trade policy changes, and commodity price volatility.