Hengli Petrochemical (600346) H2 2025 earnings summary

Executive summary

• Achieved operating revenue of RMB 200.986 billion in 2025, down 14.93% year-over-year; net profit attributable to shareholders was RMB 7.075 billion, up 0.44% year-over-year.

• Maintained strong operational resilience amid volatile macro and industry conditions, focusing on cost control, product mix optimization, and high-end market expansion.

• Continued leadership in green, intelligent manufacturing, with multiple subsidiaries recognized as national-level Green Factories and Energy Efficiency Leaders.

• Significant R&D achievements, with over 2,000 patents granted and breakthroughs in automotive fibers, biodegradable materials, and high-value engineering plastics.

Financial highlights

• Operating revenue: RMB 200.986 billion, down 14.93% year-over-year.

• Net profit attributable to shareholders: RMB 7.075 billion, up 0.44% year-over-year.

• Net cash flows from operating activities: RMB 31.12 billion, up 36.9% year-over-year.

• Gross margin for petrochemical segment: 13.28%, up 3.01 pts year-over-year.

• Basic EPS: RMB 1.01; weighted average ROE: 10.85%.

• Total assets: RMB 262.26 billion, down 3.96% year-over-year; net assets attributable to shareholders: RMB 66.77 billion, up 5.32%.

Outlook and guidance

• 2026 focus: strengthen core business, drive high-end and differentiated product development, and enhance digital and green transformation.

• Emphasis on systematic value creation, lean management, and rapid market response.

• Industry expected to see further consolidation, with leading companies benefiting from scale, technology, and policy support.