Wanhua Chemical's 2025 Revenue Up 12% YoY, Net Profit Down 3.9%, Chemical Product Prices Main Drag | Earnings Briefing

On March 16, Wanhua Chemical released its 2025 performance quick report. The announcement shows that the company achieved a total operating revenue of approximately 203.2 billion yuan for the year, an increase of 11.62% year-on-year; but net profit attributable to shareholders of the listed company was about 12.5 billion yuan, down 3.88% year-on-year, showing a pattern of “increased revenue but not increased profit.”

The divergence between revenue and profit reflects a business situation of rising output but falling prices in the chemical industry. The company explicitly states in the announcement that the decline in chemical product prices is the main factor dragging down net profit. Notably, the net profit after deducting non-recurring gains and losses decreased even more significantly, down 9.10% year-on-year, indicating that the profitability of core business operations is under greater pressure than the overall net profit performance.

Key data are as follows:

• Total operating revenue: 203.235 billion yuan, up 11.62%.
• Net profit attributable to parent: 12.527 billion yuan, down 3.88%.
• Net profit excluding non-recurring gains and losses: 12.144 billion yuan, down 9.10%.
• Basic earnings per share: 3.99 yuan/share, down 3.86%.
• Return on weighted average net assets: 12.44%, a decrease of 1.85 percentage points compared to the same period last year.

In the announcement, the company positions 2025 as a “Year of Transformation,” stating that it will deeply implement this management theme to respond to global uncertainties through transformation and continue to expand its global brand influence. However, based on the performance quick report, internal management measures are difficult to fully offset the industry-wide price headwinds.

Revenue growth, profit under pressure

In 2025, the company achieved a total operating revenue of 203.235 billion yuan, an increase of 11.62% year-on-year, roughly 21.2 billion yuan more than the previous year. However, profitability declined, with operating profit dropping to 16.666 billion yuan, down 7.23% year-on-year, a much larger decline than that of net profit, indicating that costs and expenses are eroding profitability.

Total profit was 16.268 billion yuan, down 3.88%; net profit attributable to parent was 12.527 billion yuan, also down 3.88%. Basic earnings per share fell from 4.15 yuan to 3.99 yuan, and the return on weighted average net assets was 12.44%, decreasing by 1.85 percentage points from the previous year.

Asset scale continues to expand, with significant growth in net assets

Despite profit pressures, Wanhua Chemical’s asset scale continues to grow rapidly. As of the end of 2025, the company’s total assets reached 323.011 billion yuan, an increase of 10.12% from the beginning of the year; owners’ equity attributable to the parent was 108.305 billion yuan, up 14.46% from the start of the year, with net assets per share rising from 30.14 yuan to 34.60 yuan, an increase of 14.80%.

The simultaneous expansion of assets and net assets is mainly due to the successful commissioning of multiple new facilities during the reporting period. The company stated that it continued to increase investment in R&D and innovation throughout the year, deepened industry integration and application development, and actively expanded global markets to enhance overseas local delivery and technical service capabilities.

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