Sinochem Doubles Profits, Up 101%

On January 21, Juhua Co., Ltd. released its performance forecast. The company expects its net profit attributable to shareholders of the listed company for 2025 to range from 3.54 billion yuan to 3.94 billion yuan, representing a year-on-year increase of 80% to 101%. The projected net profit attributable to shareholders of the listed company after deducting non-recurring gains and losses is expected to be between 3.514 billion yuan and 3.914 billion yuan, an increase of 1.611 billion yuan to 2.011 billion yuan compared to the same period last year, representing a year-on-year growth of 85% to 106%.

The main reason for the significant increase in performance in this period is that the company's core product, third-generation fluorinated refrigerants (HFCs), has been subject to production quotas since 2024. After two years of operation, factory and channel inventories have been sufficiently depleted, and downstream demand is strong. In addition, the industry ecosystem and competitive order continue to improve, and HFCs are gradually forming the "gene" of a functional agent, a "staple consumer product" attribute, and a global "franchise" business model. Product prices have continued to recover and rise, and gross profit has increased significantly.

In addition, to accurately reflect the company's asset status, the company conducted impairment tests on the cyclohexanone, caprolactam, and methyl ethyl ketoxime production units of its wholly-owned subsidiary, Quzhou Juhua Nylon Co., Ltd., which showed signs of impairment, and recognized a total of RMB 320,889,600 in asset impairment provisions, which will be included in the 2025 profit and loss.