China Sunsine Chemical Holdings (QES) H2 2025 earnings summary

Executive summary

• FY2025 sales volume reached a record 222,243 tonnes, up 3.8% YoY, while net profit fell 4% to RMB404.9 mln amid lower selling prices and persistent competition.

• Scale, cost efficiency and customer relationships supported continued profitability despite challenging market conditions.

Financial highlights

• FY2025 revenue fell 7% YoY to RMB3,277.4 mln; gross profit declined 9% to RMB770.3 mln.

• FY2025 PBT decreased 14% to RMB503.6 mln; EPS fell 4% to RMB42.47 cents, equivalent to SGD7.78 cents.

• H2 revenue fell 10% YoY to RMB1,587.2 mln, PBT fell 38% to RMB197.1 mln and net profit fell 31% to RMB162.2 mln.

• Other income was RMB106.1 mln, mainly interest income and scrap sales; other losses of RMB31.3 mln mainly reflected FX and fair value losses on non-current receivables.

• Income tax expense declined 39% to RMB98.7 mln, mainly due to reversal of prior-year over-provision; R&D expense fell to RMB5.2 mln from RMB86.2 mln due to reduced activity.

Outlook and guidance

• Management expects stable performance and sustained profitability over the next 12 months, supported by scale, cost efficiency, customer relationships, a strong balance sheet and disciplined operations.

• Strategy centers on sales-production equilibrium, flexible pricing, efficiency improvements, waste reduction, cash-flow management and capacity expansion.

• Tyre-market demand is expected to grow moderately, supported by higher capacity utilisation, overseas demand and domestic replacement needs, which account for ~70% of tyre consumption.