Hengli Petrochemical (600346) H2 2025 earnings summary

Executive summary

• Achieved annual revenue of RMB 200.99 billion, down 14.93% year-over-year; net profit attributable to shareholders was RMB 7.07 billion, up 0.44% year-over-year.

• Maintained strong operational resilience amid a challenging macro and industry environment, with cost control and high-end product focus offsetting cyclical pressures.

• Continued to invest in R&D, digitalization, and green transformation, with 2025 R&D spending at RMB 1.63 billion and 4,348 R&D staff.

• Board proposes a cash dividend of RMB 2.90 per 10 shares, with a payout ratio of 36.81%.

Financial highlights

• Revenue: RMB 200.99 billion, down 14.93% year-over-year.

• Net profit attributable to shareholders: RMB 7.07 billion, up 0.44% year-over-year.

• Operating cash flow: RMB 31.12 billion, up 36.90% year-over-year.

• Gross margin for petrochemical segment increased by 3.01 percentage points to 13.28%.

• Total assets: RMB 262.26 billion, down 3.96% year-over-year; net assets attributable to shareholders: RMB 66.77 billion, up 5.32%.

Outlook and guidance

• Management expects 2026 to see continued macroeconomic recovery and industry optimization, with a focus on high-quality growth, cost control, and high-end product development.

• Strategic priorities include strengthening upstream integration, expanding high-value new materials, and accelerating digital and green transformation.