Sinochem International (600500) H1 2026 earnings summary

Executive summary

• Revenue for H1 2026 was RMB 23.53 billion, down 3.36% year-over-year; net loss attributable to shareholders was RMB -280.97 million, a significant reduction in loss compared to H1 2025.

• Gross margin improved by 3 percentage points year-over-year, with core product prices and volumes rising in key segments.

• Operating cash flow increased 100% year-over-year to RMB 1.87 billion, reflecting improved working capital management.

• Management focused on cost reduction, efficiency, and high utilization rates, with key production lines running at 89%+ capacity.

Financial highlights

• Revenue: RMB 23.53 billion (down 3.36% YoY); net loss attributable to shareholders: RMB -280.97 million (vs. -885.84 million YoY).

• Operating cash flow: RMB 1.87 billion (up 100% YoY); basic/diluted EPS: -0.08 (vs. -0.25 YoY).

• Gross margin and operating efficiency improved; EBITDA interest coverage rose to 4.44x from 1.58x YoY.

• Asset-liability ratio increased to 70.29% (from 68.35% at 2025 year-end).

Outlook and guidance

• Management expects continued improvement in profitability and operating quality in H2 2026, focusing on safety, cost control, and market expansion.

• Plans to deepen overseas and emerging market expansion, enhance R&D, and maintain high utilization rates.