Hengyi Petrochemical (000703) H2 2024 earnings summary

Executive summary

• Achieved RMB 125.46 billion in revenue, down 7.85% year-over-year; net profit attributable to shareholders was RMB 234 million, down 46.28% year-over-year.

• Maintained high and stable production capacity across refining, chemical, and polyester segments.

• Continued strategic focus on vertical integration, technological innovation, and green transformation.

• Significant R&D investment of RMB 764 million, up 2.68% year-over-year, with 226 invention patent applications.

Financial highlights

• Revenue: RMB 125.46 billion (down 7.85% YoY); net profit: RMB 234 million (down 46.28% YoY).

• Net cash flow from operating activities: RMB 5.99 billion, up 32.33% YoY.

• Total assets: RMB 107.53 billion; net assets attributable to shareholders: RMB 24.74 billion.

• Gross margin for main segments: Petrochemical 3.53%, Chemical fibre 3.89%.

• Cash dividend of RMB 0.50 per 10 shares proposed.

Outlook and guidance

• Will deepen the “One Drop of Oil, Two Strands of Fiber” strategy and accelerate digital and intelligent transformation.

• Focus on R&D in green chemicals, advanced materials, and digital upgrades.

• Major projects: Qinzhou Caprolactam-Polyamide Project (Phase I to be operational in 2025), Brunei Refinery Project Phase II.

• Emphasis on cost reduction, efficiency, and productivity improvement.