China Sunsine Chemical Holdings (QES) H1 2025 earnings summary

Executive summary

• 1H2025 revenue fell 3% YoY to RMB1,690.2m as lower ASP offset higher sales volume; net profit rose 29% to RMB242.7m.

• Sales volume reached a half-year record of 109,695 tonnes, up 4% YoY; ASP declined 7% to RMB15,195 per tonne.

Financial highlights

• Revenue was RMB1,690.2m, down 3% YoY; gross profit fell 4% to RMB415.8m and gross margin declined 0.2 percentage points to 24.6%.

• Profit before tax increased 14% YoY to RMB306.5m; net profit rose 29% to RMB242.7m.

• Operating cash flow was RMB431.5m, versus RMB227.5m in H1 2024; the net increase in cash and cash equivalents was RMB155.6m.

• Other income rose 56% to RMB52.1m, mainly from higher control-landfill income; other gains fell 76% to RMB4.4m, mainly due to lower FX gains.

Outlook and guidance

• Strategy centers on sales-production equilibrium, flexible pricing, market expansion, capacity growth, productivity gains, cost reduction and stronger management processes.

• The 30,000-tonne-per-year Phase 2 insoluble sulphur project is in trial run, with commercial production expected in 4Q2025.

• Hengshun’s 40,000-tonne-per-year Phase 2 MBT project targets trial runs by end-2025; the 20,000-tonne-per-year Weifang MBT project targets early 2026.

• The CBS workshop conversion targets early-2026 trial runs; FY2026 accelerator capacity is projected at 135,000 tonnes, up from 117,000 tonnes in FY2025.

• FY2026 total annual capacity is expected to reach 272,000 tonnes, 7% above current capacity.