Sinopec Shanghai Petrochemical Company (338) H2 2024 earnings summary

Executive summary

• Returned to profitability in 2024 with net profit attributable to owners of RMB 316.5 million, reversing a loss of over RMB 1,346.15 million in 2023.

• Revenue declined 6.32% year-over-year to RMB 87,060.09 million.

• Board proposed a final dividend of RMB 0.02 per share, subject to AGM approval.

• Focused on efficiency maximization, cost reduction, product mix optimization, and high-value, green transformation.

Financial highlights

• Gross profit improved to RMB 160.89 million from a loss of RMB 1,534.81 million year-over-year.

• Basic earnings per share turned positive at RMB 0.030, up from RMB -0.130 in 2023.

• Total assets increased 5.37% to RMB 41,687.34 million; equity attributable to owners rose 0.88%.

• Net cash flow from operating activities rose to RMB 7,740 million, up 859% year-over-year.

• Gearing ratio increased to 39.80% from 37.11% at end-2023.

Outlook and guidance

• Capital expenditure plan for 2025 is RMB 2.85 billion, up from RMB 1.77 billion in 2024.

• Major projects include technological transformation, power unit renovation, and chemical water treatment upgrades.

• 2025 output targets: crude oil processing 13.10 million tons, petroleum products 8.39 million tons, gasoline 3,300k tons, ethylene 622k tons.

• Anticipates structural decline in refined petroleum demand and intensified market competition.

• Strategic focus on high-end materials, green energy, and digital innovation.