China Sanjiang Fine Chemicals Company (2198) H2 2025 earnings summary

Executive summary

• Revenue declined 5.7% year-over-year to RMB18,468.2 million, with gross profit down 19.1% and net profit attributable to owners down 23.5%.

• Gross profit margin compressed to 4.9% from 5.7% due to margin pressure in EO and certain by-products, despite resilience in EG and surfactants.

• The business model leverages vertical integration, optimizing feedstock and product mix to manage risk and capture value across the chain.

• Dividend payout increased, with a proposed final dividend of HK5 cents per share.

Financial highlights

• Revenue: RMB18,468.2 million (down 5.7% year-over-year).

• Gross profit: RMB898.2 million (down 19.1% year-over-year).

• Net profit attributable to owners: RMB407.3 million (down 23.5% year-over-year).

• Basic EPS: RMB35.2 fen (down 23.5% year-over-year).

• Gross profit margin: 4.9% (down 0.8 percentage points year-over-year).

Outlook and guidance

• 2026 outlook includes resilience in polyester and homecare demand, policy-led domestic consumption, and logistics efficiencies.

• Downside risks: Middle East conflict, feedstock volatility, tax uncertainties, and continued weakness in property-linked demand.

• Industry expected to remain two-speed, with government targeting 4.5–5% GDP growth and sector focus on high-end, green products.