Hengyi Petrochemical (000703) investor relations material

Executive summary

• Achieved revenue of ¥67.31 billion, up 20.28% year-over-year; net profit attributable to shareholders surged to ¥5.90 billion, a 2,500.73% increase year-over-year.

• Gross margin and profitability improved across major segments, driven by strong overseas refining and chemical operations and robust market demand.

• Major strategic projects advanced, including Brunei Refinery Phase II and Xinjiang coal chemical project, enhancing integrated supply chain and risk resilience.

• Continued focus on technological innovation, green transformation, and digitalization, with significant progress in recycling and new materials.

Financial highlights

• Revenue: ¥67.31 billion, up 20.28% year-over-year; net profit attributable to shareholders: ¥5.90 billion, up 2,500.73%.

• Operating cash flow: -¥487.95 million, impacted by increased inventories.

• Basic EPS: ¥1.75; diluted EPS: ¥1.59; weighted average ROE: 21.32%.

• Total assets: ¥122.44 billion, up 11.12% from year-end; net assets attributable to shareholders: ¥30.49 billion, up 22.54%.

• Gross margin for refining products rose to 28.16%, and for chemical products to 19.39%.

Outlook and guidance

• Brunei Refinery Phase II construction and Xinjiang coal chemical project to further boost capacity and profitability.

• Industry outlook remains positive with tight supply in Southeast Asia and limited new capacity in PTA and PET.

• Continued focus on green, high-value, and differentiated products, with new recycling and PA6 projects progressing.