Hengyi Petrochemical (000703) H1 2025 earnings summary

Executive summary

• Revenue for H1 2025 was ¥55.96 billion, down 13.59% year-over-year; net profit attributable to shareholders was ¥227 million, down 47.32% year-over-year.

• Gross margin remained low across main segments; cash flow from operations was negative at -¥181 million.

• Major projects progressed smoothly, with Brunei refinery running at full capacity and the Guangxi caprolactam-polyamide project set for H2 launch.

• R&D investment increased 23.97% year-over-year to ¥460 million, with 300 patent applications submitted.

• No interim dividend, bonus shares, or capital increase from reserves planned for the half-year.

Financial highlights

• Operating income: ¥55.96 billion, down 13.59% year-over-year.

• Net profit attributable to shareholders: ¥227 million, down 47.32% year-over-year.

• Basic and diluted EPS: ¥0.07, down 46.15% year-over-year.

• Total assets: ¥109.77 billion, up 2.09% from year-end 2024.

• Net assets attributable to shareholders: ¥24.63 billion, down 0.46% from year-end 2024.

Outlook and guidance

• Guangxi 1.2 million ton caprolactam-polyamide project phase I expected to start production in H2 2025.

• Brunei refinery phase II construction progressing, expected to further strengthen integrated value chain.

• Company to continue focusing on cost control, digital transformation, and high-value product development.