Sinopec Shanghai Petrochemical Company (338) H1 2025 earnings summary

Executive summary

• Revenue for 1H 2025 declined 9.2% year-over-year to RMB39.5 billion, with a net loss attributable to shareholders of RMB462 million, compared to a profit in 1H 2024.

• EPS turned negative at -0.044 RMB, down from 0.003 RMB in the prior year period.

• The company faced a challenging macroeconomic and industry environment, with declining demand, volatile crude oil prices, and tariff wars.

• Production volumes for key products such as refined oil and plastics declined, while ethylene and synthetic fiber output increased.

• Management focused on cost control, operational optimization, and advancing high-quality development projects.

Financial highlights

• Gross loss reached RMB641 million, compared to a gross loss of RMB66 million last year.

• Profit before taxation dropped from RMB12.43 million to -RMB582.76 million year-over-year.

• Net cash flows from operating activities increased 127.8% year-over-year to RMB779 million.

• Net asset value per share declined 1.74% to RMB2.304.

• Weighted average return on net assets was -1.87%, down 1.98 percentage points year-over-year.

Outlook and guidance

• The company expects continued pressure from weak demand, industry overcapacity, and increased competition from new energy vehicles in 2H 2025.

• Focus areas include safety, operational optimization, innovation-driven transformation, organizational reform, and talent development.

• Capital expenditure will continue for thermal power and carbon fiber projects, funded by internal cash and bank credit.