Sinochem International (600500) H2 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥47.34 billion, down 10.54% year-over-year due to industry-wide price declines and weak demand.

• Net loss attributable to shareholders was ¥2.22 billion, a reduction in loss by ¥614 million compared to 2024.

• Gross margin improved by 1.12 percentage points to 3.43% as cost controls and operational efficiency measures took effect.

• R&D investment reached ¥687 million, focusing on new chemical materials and polymer additives.

Financial highlights

• Operating cash flow increased 42.9% to ¥1.66 billion, reflecting improved working capital management.

• Total assets at year-end were ¥50.15 billion, down 1.97% from the prior year.

• Shareholders’ equity decreased 16.48% to ¥10.51 billion.

• Basic and diluted EPS were both -0.62 yuan.

• Adjusted net loss (excluding non-recurring items) was ¥2.11 billion, a reduction of ¥1.6 billion year-over-year.

Outlook and guidance

• The company will focus on core chemical materials, cost reduction, and operational efficiency.

• Plans include expanding overseas marketing, accelerating innovation, and optimizing the product mix.

• Risk management will prioritize safety, cash flow, and compliance.