Wanhua Chemical Group (600309) H1 2024 earnings summary

Executive summary

• Revenue for H1 2024 reached RMB 97.07 billion, up 10.77% year-over-year, while net profit attributable to shareholders was RMB 8.17 billion, down 4.60% year-over-year.

• Gross margin and EPS declined, with basic EPS at RMB 2.60, down 4.76% year-over-year.

• The company will distribute a cash dividend of RMB 5.20 per 10 shares, totaling RMB 1.63 billion.

• Achieved total sales revenue of ¥3,545,534,000 from polyurethane series, ¥3,957,476,000 from petrochemical and LPG trading, and ¥1,297,868,000 from fine chemicals and new materials in the first half of 2024.

• Major product output and sales volumes increased, supported by new and expanded production facilities.

Financial highlights

• Operating cash flow was RMB 10.29 billion, down 8.29% year-over-year.

• Total assets at period-end were RMB 294.24 billion, up 16.28% from year-end 2023.

• Net assets attributable to shareholders reached RMB 91.48 billion, up 3.19% from year-end 2023.

• Gross margin and net margin both declined, with gross margin at 16.9% and net margin at 8.4%.

• Non-recurring gains totaled RMB 75.42 million, mainly from government grants and asset disposals.

Outlook and guidance

• The company will continue to focus on digitalization, safety, and efficiency in H2 2024.

• Ongoing expansion projects include the second phase of the ethylene project and the first phase in Penglai, aiming for timely commissioning.

• The company expects to further optimize supply chain, enhance customer service, and accelerate R&D transformation.