Hengyi Petrochemical (000703) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 reached ¥29.95 billion, up 10.23% year-over-year.

• Net profit attributable to shareholders surged to ¥1.99 billion, a 3,773.77% increase year-over-year.

• Adjusted net profit (excluding non-recurring items) was ¥1.94 billion, up 23,640.41% year-over-year.

• Cash flow from operating activities improved but remained negative at -¥2.57 billion, a 32.98% year-over-year improvement.

Financial highlights

• Basic EPS was ¥0.60, up from ¥0.02 in Q1 2025; diluted EPS was ¥0.54.

• Gross margin improved as revenue growth outpaced cost increases.

• Total assets at quarter-end were ¥121.12 billion, up 9.92% from year-end 2025.

• Shareholders’ equity rose 8.98% to ¥27.12 billion.

Outlook and guidance

• Management attributes profit growth to higher product prices and improved margins.

• Inventory and receivables increased due to rising raw material prices and higher sales.