Wuhan Youji (2881) H1 2025 earnings summary

Executive summary

• H1 2025 revenue fell 12.8% YoY to RMB1,440.2m and net profit fell 19.4% to RMB38.7m as weak demand and lower selling prices pressured results.

• Gross margin held at 11.3%; lower administrative expenses, listing expenses and finance costs partly offset weaker gross profit and higher R&D spending.

Financial highlights

• Revenue was RMB1,440.2m versus RMB1,651.2m; gross profit was RMB163.0m versus RMB186.7m, and profit before tax was RMB47.5m versus RMB63.4m.

• Net profit and profit attributable to owners were RMB38.7m versus RMB48.0m; basic and diluted EPS was RMB0.42 versus RMB0.63.

• R&D expense rose to RMB72.7m from RMB58.9m; finance costs fell to RMB17.5m from RMB21.1m.

Outlook and guidance

• Priorities include flexible maintenance, higher-value product mix and pricing, wider global sales coverage, stronger R&D, and production and energy-efficiency improvements.

• Phase II of Hubei Xinxuanhong is expected to start construction in H2 2025, with some capacity targeted for 2026 and remaining capacity phased through 2029.

• Phase II designed capacity includes 160,000 tonnes/year of toluene chlorination products and 210,000 tonnes/year of other fine chemicals.