Carbon Fiber Industry Leader’s Net Profit Soars 229%

Jilin Chemical Fiber has released its 2025 annual report and its first-quarter report for 2026.

In 2025, the company achieved a total operating revenue of 5.428 billion yuan, a significant increase of 39.77% year-on-year, maintaining growth for five consecutive years and setting a new record high. The net profit attributable to the parent company was 22.7304 million yuan, a decrease of 17.98% year-on-year; the non-recurring net profit attributable to the parent company was 17.0039 million yuan, a decline of 35.52% year-on-year; the basic earnings per share was 0.0092 yuan/share.

Revenue growth was mainly driven by the ramp-up of carbon fiber business and the steady recovery of the traditional viscose business. The core business of viscose fiber saw a year-over-year revenue increase of 57.20%, contributing the majority of the increment. On one hand, the increase in sales of viscose long fibers contributed to a revenue growth of 10.85%. On the other hand, the company's new viscose short fibers business contributed 1.293 billion yuan in revenue, becoming an important driver for the growth of the viscose sector.

Carbon fiber business becomes the "second curve".In 2025, its carbon fiber production capacity will reach 70,000 tons, with sales of 56,000 tons, ranking first globally in both production and sales.The product revenue surged by 178.72% year-on-year, becoming the core engine of the company's revenue growth.Achieve a turnaround from losses to profits, completely reversing the loss situation of approximately 0.86 billion yuan in 2024.The company's layout in the carbon fiber sector has started to deliver results, while other businesses have significantly declined, primarily due to the contraction of trading-related operations.

The carbon fiber business turned profitable thanks to multiple factors, including two price increases (cumulative increase of RMB 15,000 per ton), full-capacity operation of production lines, and a higher proportion of high-margin 3K small-tow products (gross margin exceeding 40%). However, due to high raw material costs—such as acrylonitrile and wood pulp used for viscose fiber—as well as sluggish price pass-through to customers and rising period expenses, the company’s overall profitability failed to improve correspondingly.

By sales region, domestic market revenue amounted to RMB 3.813 billion, an increase of 45.96% year-on-year; overseas market revenue reached RMB 1.615 billion, up 27.03% year-on-year. The domestic market exhibited a higher growth rate and became the primary driver of revenue growth.

In terms of main business, the annual report shows that the company focused on its core business during the reporting period, advancing the "four modernizations" of continuous, large-scale, uniform, and fine denier in viscose long fiber production. The product's market share in the high-end market exceeded 45%. The company continues to expand into the carbon fiber composite materials field, with products mainly applied in industrial and civilian sectors, particularly in wind turbine blades.

In the first quarter of 2026, the company's operations welcomed a strong turnaround. It achieved a revenue of 1.304 billion yuan, an increase of 7.36% year-on-year; the net profit attributable to the owners of the parent company was 27.2496 million yuan, a significant increase of 229.51% year-on-year; the non-recurring net profit was 26.6314 million yuan, an increase of 229.73% year-on-year; the basic earnings per share was 0.0111 yuan.

Gross margin was 12.70% in the first quarter, up 0.46 percentage points year-over-year and 3.63 percentage points quarter-over-quarter; net margin was 2.37%, up 1.79 percentage points year-over-year and 2.40 percentage points quarter-over-quarter. Net cash flow from operating activities was RMB 890.938 million, an increase of 32.52% year-over-year.

In 2026, the parent company’s net profit for a single quarter has already exceeded the full-year net profit of 2025—a figure whose significance is self-evident.

The surge in profitability is primarily driven by the full-scale advancement of the carbon fiber business: in March, multiple high-end carbon fiber production lines added 9,500 tons of new capacity; the 25,000-ton-per-year carbon fiber project officially broke ground, accelerating the implementation of "direct green power integration"; the company is accelerating its transition from selling raw fibers and carbon fibers to selling finished products, with carbon fabric sales increasing 2.6-fold year-over-year and composite product sales rising by 59%; and applications of its products in high-end sectors such as aerospace and large-surface carbon fiber products continue to expand significantly.

In terms of future production and operations, the company stated that it will optimize and upgrade existing assets, accelerate the transformation and upgrading of all business segments; leverage its technological expertise in carbon fiber composites to achieve a “second growth curve,” further strengthening, enhancing, and expanding its carbon fiber industry, while also advancing the development of bio-based fibers; promote improved management efficiency through digitalization and informatization; and comprehensively strengthen talent team building.