Shandong Hualu-Hengsheng Chemical (600426) H2 2024 earnings summary

Executive summary

• Achieved revenue of ¥34.23 billion, up 25.55% year-over-year, and net profit attributable to shareholders of ¥3.90 billion, up 9.14% year-over-year.

• Maintained high-quality growth despite industry overcapacity and weak demand, leveraging cost and innovation advantages.

• Expanded production capacity with new projects in nylon 66, adipic acid, and melamine resin, supporting future growth.

• No major safety or environmental incidents; product quality pass rate 100%.

Financial highlights

• Operating income: ¥34.23 billion, up 25.55% year-over-year.

• Net profit attributable to shareholders: ¥3.90 billion, up 9.14% year-over-year.

• Operating cash flow: ¥4.97 billion, up 5.36% year-over-year.

• Basic and diluted EPS: ¥1.841, up 9% year-over-year.

• Gross margin for main products: new energy/new materials 13.07%, organic amines 6.54%, fertilizers 29.90%, acetic acid/derivatives 27.62%.

Outlook and guidance

• 2025 sales revenue expected to reach ¥34.7 billion, with focus on stable, high-quality growth and cost control.

• Plans to further enhance innovation, digital transformation, and green development to strengthen competitiveness.