Hengli Petrochemical (600346) Q2 2026 earnings summary

Executive summary

• Achieved net profit attributable to shareholders of ¥7.21 billion, up 136.25% year-over-year, despite a 5.45% decline in revenue to ¥98.22 billion.

• Operating income and EBITDA margins improved significantly, driven by cost controls and product mix optimization.

• Maintained high utilization rates across core refining, coal chemical, PTA, and polyester capacities.

• No interim dividend or capital increase from reserves was proposed for the period.

Financial highlights

• Revenue: ¥98.22 billion, down 5.45% year-over-year; net profit: ¥7.21 billion, up 136.25%.

• Basic and diluted EPS: ¥1.02, up 137.21% year-over-year.

• Net cash from operating activities: ¥3.50 billion, down 82.03% year-over-year.

• Gross margin and profitability improved due to favorable upstream spreads and cost reductions.

• Non-recurring gains totaled ¥1.87 billion, mainly from government grants and fair value changes.

Outlook and guidance

• Expects to benefit from industry consolidation, supply-side reforms, and continued demand for high-end materials.

• Will continue to focus on R&D, digital transformation, and green manufacturing to drive future growth.

• Plans to further expand into advanced materials for new energy, electronics, and environmental sectors.