Sinochem International (600500) H2 2024 earnings summary

Executive summary

• Revenue for 2024 was RMB 52.93 billion, down 2.48% year-over-year; net loss attributable to shareholders was RMB -2.84 billion, with a basic EPS of -0.79 yuan.

• Excluding the impact of the divested natural rubber business, revenue was essentially flat year-over-year.

• Net loss deepened by RMB 989 million compared to 2023, mainly due to industry downturn, low product prices, and increased fixed costs from new capacity.

• Major strategic projects such as the Lianyungang C3 chain, accelerator, and aramid projects advanced as planned.

• R&D investment reached RMB 776 million, with new product sales of RMB 9.7 billion.

Financial highlights

• Operating income: RMB 52.93 billion, down 2.48% year-over-year.

• Net loss attributable to shareholders: RMB -2.84 billion, down RMB 989 million year-over-year.

• Net loss after non-recurring items: RMB -3.72 billion.

• Operating cash flow: RMB 1.16 billion, down 31.79% year-over-year.

• Total assets: RMB 51.16 billion, down 5.12% from 2023.

• Net assets attributable to shareholders: RMB 12.58 billion, down 18.91% from 2023.

• Gross margin declined across all major segments, with the largest drop in polymer additives (down 9.44 percentage points).

• No dividend distribution for 2024 due to losses and negative retained earnings at the parent company.

Outlook and guidance

• The company will focus on core chemical materials, cost reduction, and operational excellence.

• Plans to enhance R&D, accelerate high-value product development, and improve supply chain efficiency.

• Will continue to optimize capital structure and maintain liquidity through diversified financing.

• Management expects ongoing industry pressure but aims to improve profitability through innovation and efficiency.