Hengli Petrochemical (600346) H2 2024 earnings summary

Executive summary

• Achieved operating revenue of RMB 236.27 billion in 2024, up 0.63% year-over-year; net profit attributable to shareholders reached RMB 7.04 billion, up 2.01% year-over-year.

• Net cash flow from operating activities was RMB 22.73 billion; total assets increased to RMB 273.08 billion, up 4.79% year-over-year.

• Maintained industry leadership through cost optimization, technological innovation, and expansion in high-end new materials.

• Significant progress in green and intelligent manufacturing, with multiple subsidiaries recognized as national-level Green Factories.

Financial highlights

• Gross margin for the year was 9.97%; basic EPS was RMB 1.00, and weighted average ROE was 11.48%.

• Net profit after deducting non-recurring gains and losses was RMB 5.21 billion, down 13.14% year-over-year.

• R&D investment reached RMB 1.70 billion, up 24% year-over-year, representing 0.72% of operating revenue.

• Cash dividend of RMB 0.45 per share proposed, with a payout ratio of 44.97%.

Outlook and guidance

• Focus on strengthening upstream industrial platforms and expanding high-end downstream materials.

• Emphasis on innovation-driven growth, digital transformation, and green development.

• Plans to optimize operations, reduce liabilities, and enhance shareholder returns as capital expenditure peaks subside.

• Anticipates further industry consolidation and increased market share in PTA and polyester segments.