Wuhan Youji (2881) H2 2025 earnings summary

Executive summary

• FY2025 revenue fell 19.1% YoY to RMB2,657.4m and net profit fell 49.2% to RMB62.5m, reflecting lower selling prices and sales volume amid weak chemical demand.

• Gross margin held at 12.0% versus 12.1% in 2024; basic and diluted EPS was RMB0.67 versus RMB1.45.

• A final dividend of RMB0.3215 per share was proposed, subject to shareholder approval.

Financial highlights

• Revenue was RMB2,657.4m, down RMB626.8m or 19.1% YoY; gross profit was RMB319.5m, down RMB76.7m or 19.4%.

• Net profit was RMB62.5m versus RMB123.0m; profit before tax was RMB78.4m versus RMB159.1m.

• Other income and gains declined to RMB44.5m from RMB74.1m, mainly due to the absence of significant 2024 government grants, including demolition compensation and additional VAT deductions.

• Administrative expenses fell to RMB106.2m from RMB118.4m, partly reflecting no listing expenses in 2025; 2024 included RMB9.5m in listing expenses.

• Operating cash flow was RMB41.7m versus RMB262.5m; investing cash outflow was RMB322.8m, including RMB257.5m of property, plant and equipment purchases.

Outlook and guidance

• New capacity at Hubei Xinxuanhong is expected to start operating in part during 2026, with the remainder constructed and commissioned in stages through 2029.

• Phase II is designed for 160,000 tonnes/year of toluene chlorinated products and 210,000 tonnes/year of other fine chemicals; construction began in H2 2025.

• Revenue and profit are expected to improve as macroeconomic recovery eases and strategic initiatives progress; no quantified guidance was stated.

• Plans include flexible capacity allocation, value-oriented pricing, global sales expansion, Malaysia production capacity and R&D into higher-value products.