Rongsheng Petrochemical H1 2026 Revenue RMB129.4B Down 12.9%, Net Profit RMB5.1B Up 748.8%

Rongsheng Petrochemical released its 2026 interim report on the evening of August 24. During the reporting period, total assets reached RMB402.8 billion, operating revenue was RMB129.407 billion, down 12.93% year on year; net profit attributable to shareholders was RMB5.111 billion, up 748.83%; non-GAAP net profit attributable to shareholders was RMB5.344 billion, up 607.79%; net cash flow from operating activities was RMB21.254 billion, up 180.15%. The company showed a pattern of rising profit without rising revenue in the first half, with profit growth mainly driven by recovery in refining and chemical business profitability rather than sales expansion.

By segment, the petrochemical business generated revenue of RMB106.082 billion, down 17.7% year on year, with gross margin improving to 16.88% from 14.91% in the same period of 2025. The polyester and chemical fibre business posted revenue of RMB13.290 billion, up 19.45%, with gross margin rising to 6.78% from 1.5%. Refined oil product revenue was RMB20.803 billion, down 60.3% year on year, with gross margin of 34.89%, up 12.31 percentage points from the same period in 2025. Chemical product revenue was RMB71.267 billion, up 17.33%, with gross margin of 14.87%, up 2.79 percentage points year on year.

The company's core subsidiary Zhejiang Petrochemical (ZPC) achieved revenue of RMB93.521 billion and net profit of RMB8.275 billion in the first half, compared with net profit of RMB2.132 billion in the same period of 2025. Its net cash flow from operating activities was RMB12.656 billion, down approximately 27.4% year on year.

Data from the National Bureau of Statistics show that profits of industrial enterprises above designated size grew 18.7% year on year in the first half of 2026, with the chemical raw materials and chemical products manufacturing sector up 67.8% and the petroleum, coal and other fuel processing industry turning from loss to profit. Rongsheng Petrochemical's net profit growth attributable to shareholders exceeded the overall industry level. ZPC has formed an annual processing capacity of 40 million tonnes of refining, 8.8 million tonnes of paraxylene and 4.2 million tonnes of ethylene, with a high degree of refining-chemical integration. The company currently has an industrial chain covering refining, chemicals, PTA, polyester and new materials.

Rongsheng Petrochemical continues to deepen strategic cooperation with Saudi Aramco, coordinating on crude supply, technology R&D and overseas market expansion. It is also advancing strategic investment in advanced new materials projects with SABIC. In July 2026, the company completed the transfer of shares under its RMB1.7 billion employee stock ownership plan, with 1,404 core employees fully subscribing at RMB11.11 per share for a total of 153 million shares.