Hengyi Petrochemical (000703) H2 2025 earnings summary

Executive summary

• Achieved revenue of ¥113.53 billion in 2025, down 9.51% year-over-year; net profit attributable to shareholders was ¥258 million, up 10.43% year-over-year.

• Gross margin remained low across main business lines, with overall profitability under pressure.

• Significant progress in strategic projects: Guangxi caprolactam-PA6 project entered trial production, boosting capacity and industry position.

• Continued investment in R&D, with ¥889 million spent, up 16.45% year-over-year; 187 invention patents filed.

• Maintained industry leadership in integrated petrochemical and chemical fiber operations, with ongoing expansion in Southeast Asia.

Financial highlights

• Revenue: ¥113.53 billion, down 9.51% year-over-year.

• Net profit attributable to shareholders: ¥258 million, up 10.43% year-over-year.

• Net profit after non-recurring items: ¥141 million, up 596.59% year-over-year.

• Operating cash flow: ¥4.63 billion, down 22.87% year-over-year.

• Basic and diluted EPS: ¥0.08, up 14.29% year-over-year.

• Total assets: ¥109.63 billion at year-end, up 1.95% from prior year.

• Net assets attributable to shareholders: ¥24.39 billion, down 1.44% year-over-year.

Outlook and guidance

• 2026 focus on advancing Brunei Refinery Phase II and PA6 integration projects to enhance profitability and market share.

• Anticipates improved product spreads and demand recovery in Southeast Asia and domestic markets.

• Plans to deepen digital transformation, cost optimization, and green technology R&D.