Fuheng New Materials Sees Revenue And Net Profit Decline In First Half Of 2025, Engineering Plastics Business Performs Impressively

On August 22, Fuheng New Materials disclosed its 2025 semi-annual report. In the first half of the year, the company achieved operating revenue of 321 million yuan and a net profit attributable to the parent company of 6.79 million yuan. In addition, selling expenses increased by 48.47% year-on-year, administrative expenses increased by 71.31% year-on-year, research and development expenses decreased by 26.03% year-on-year, and financial expenses increased by 26.42% year-on-year.
 
Fuheng New Material's main business is the research and development, production, sales, and related technical services of modified plastics. The main business income is composed of: modified engineering plastics at 42.31%, styrene at 41.47%, polyolefins at 11.95%, and others at 4.27%. Currently, the company's modified plastic products are widely used in household appliances, consumer electronics, and automotive parts, among other fields.

 
The announcement shows that the performance fluctuations in the first half of the year were mainly due to a decline in customer order volumes and a decrease in sales prices, putting pressure on the company's performance. Although the first half performance faced challenges, the company's engineering plastics products in the modified plastics business performed remarkably well, with revenue increasing by 43.94% year-on-year, mainly due to the growth in order volumes from BYD and Shenzhen Jiaxinde Technology Co., Ltd.
 
The modified plastics industry is currently accelerating towards high-performance and green development. As downstream sectors increasingly demand higher material performance, the market demand for modified plastics is expected to further expand. In addition, the rise of trade protection policies is prompting the domestic modified plastics industry to accelerate import substitution, which is expected to further increase the modification rate and expand the market size of modified plastics. This presents opportunities for the development of Fuheng New Material's related businesses.
 
Fuheng New Materials has strong technical research and development capabilities, having accumulated more than ten thousand product formulations. It has developed a wide range of modified plastic products, including flame-retardant materials, high-stability glass fiber reinforced materials, and chemically resistant materials.
 
It is worth mentioning that although the company currently possesses strong capabilities in modified plastic products, it is also actively expanding into future high value-added fields, including lightweight materials (such as automotive lightweight modified plastics), import substitution materials (such as high alcohol-resistant PMMA), environmentally friendly materials (such as PCR materials), high-performance specialty engineering plastics (such as PPS, long carbon chain PA612), and high-performance functional materials.
 
Overall, in the short term, Fuheng New Materials' performance will face certain pressures due to intense market competition and fluctuations in raw material prices; however, driven by the strong growth momentum of its modified engineering plastics business, along with the company's long-term accumulated technical strength and forward-looking in high value-added sectors, its future development will a period of opportunity.