Huafon Chemical Co. (002064) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was ¥24.20 billion, down 10.15% year-over-year; net profit attributable to shareholders was ¥1.86 billion, down 16.32% year-over-year.

• Gross margin declined slightly, with all major product lines experiencing price pressure due to weak demand and increased competition.

• Cash flow from operating activities increased 23.66% year-over-year to ¥3.74 billion.

• The board proposes a cash dividend of ¥1 per 10 shares, totaling ¥496 million, pending shareholder approval.

Financial highlights

• Operating income: ¥24.20 billion (down 10.15% YoY); net profit: ¥1.86 billion (down 16.32% YoY).

• Basic and diluted EPS: ¥0.37 (down 17.78% YoY).

• Gross margin for main products: chemical fibers 16.52%, chemical new materials 20.63%, basic chemicals 3.92%.

• Total assets at year-end: ¥36.88 billion, up 2.55% from previous year.

• Net assets attributable to shareholders: ¥27.34 billion, up 3.34% year-over-year.

Outlook and guidance

• Focus on high-end, digital, low-carbon, and international expansion to drive long-term growth.

• 2026 priorities: quality improvement, project execution, digital transformation, and management reform.

• Strategic emphasis on innovation, market orientation, and sustainable high-quality development.