Sinochem Equipment Sees Over 80% Revenue Drop In H1 2025 After Shedding Plastic Machinery Business

Recently, Sinochem Equipment released its semi-annual report for 2025. The report shows that the company's operating revenue in the first half of the year was 658 million yuan, a year-on-year decrease of 85.39%. Net profit attributable to shareholders was -18.38 million yuan, a year-on-year increase of 93.60%. Net profit attributable to shareholders after deducting non-recurring gains and losses was -26.81 million yuan, a year-on-year increase of 94.77%.

In addition, during the reporting period, the company’s period expenses amounted to 130 million yuan, representing a year-on-year decrease of 1.26 billion yuan. Specifically, selling expenses decreased by 97.88% year-on-year, administrative expenses decreased by 82.98%, R&D expenses decreased by 76.42%, and financial expenses decreased by 95.18%.

Sinochem Equipment's main business involves the research and development, production, and sales of rubber and plastic machinery and chemical equipment, and it provides system services and solutions for rubber and plastic equipment and other chemical equipment. According to the announcement, there was a significant decline in revenue in the first half of the year, primarily because the company underwent a major asset restructuring in 2024, and Equipment Luxembourg, along with the KM Group and its subsidiaries, are no longer included in the company's consolidated financial statements.

Despite a decline in revenue due to restructuring factors, the company's two core businesses—chemical equipment and rubber machinery—have shown some positive signs at the operational level. During the reporting period, the company secured approximately 723 million yuan in new orders, representing a 10% increase compared to the same period last year. Among them, new orders for the rubber machinery business (Sinochem Rubber Machinery) increased significantly by 162% year-on-year.

Overall, the significant decline in Sinochem Equipment’s revenue in the first half of the year was mainly due to the divestiture of its plastic machinery business, while the substantial narrowing of losses and the sharp increase in net profit demonstrate that this "slimming and strengthening" initiative has already shown initial results. Looking ahead, industry insiders believe that for Sinochem Equipment to achieve truly sustainable profit growth, the key still lies in the strength of its strategic execution—specifically, whether it can continue to expand market-driven order acquisition, refine cost management, and achieve ongoing breakthroughs in innovation.