Wanhua Chemical H1 Net Profit RMB10.06 Billion, Up 64.35%

Wanhua Chemical disclosed its 2026 semi-annual report on the evening of August 24. In the first half, the company achieved operating revenue of RMB119.316 billion, up 31.26% year on year; net profit attributable to shareholders of listed companies was RMB10.063 billion, up 64.35%; net profit excluding non-recurring items was RMB9.676 billion, up 54.96%. Total profit reached RMB13.968 billion, up 85.53%. Basic earnings per share were RMB3.21, up 64.62%; weighted average return on equity was 8.96%, an increase of 2.72 percentage points year on year. Net cash flow from operating activities was RMB11.784 billion, up 11.93%.

In the second quarter, the company achieved operating revenue of RMB65.264 billion, up 36.44% year on year; net profit attributable to shareholders was RMB6.345 billion, up 108.68% year on year and 70% quarter on quarter. The single-quarter gross margin was 19.04%, up 6.88 percentage points from the same period in 2025.

By business segment, in the first half, petrochemical series products and trading business generated sales revenue of RMB47.738 billion, up 36.65%; polyurethane series achieved sales revenue of RMB44.957 billion, up 21.87%; fine chemicals and new materials series achieved sales revenue of RMB22.548 billion, up 44.28%. The company stated that revenue growth was mainly due to higher product prices and increased sales volumes. During the reporting period, affected by international politics and geopolitical conflicts, global chemical raw material prices rose sharply, and many overseas chemical plants experienced supply chain disruptions due to raw material shortages and logistics bottlenecks, changing the industry supply-demand pattern. The domestic chemical industry, relying on an integrated industrial system and diversified raw material layout, demonstrated supply chain resilience and stable supply capability.

In the polyurethane business, some overseas plants had limited capacity, and global polyurethane supply was generally tight. Demand from new energy and cold chain sectors provided support, while demand from real estate and home furnishing was relatively weak. In the first half, the average market price of pure MDI was about RMB21,600 per ton, polymeric MDI about RMB16,500 per ton, TDI about RMB16,300 per ton, and soft foam polyether about RMB9,900 per ton. In the petrochemical business, international crude oil prices fluctuated upward, driving broad increases in petrochemical product prices.

Shandong propylene price was RMB7,947 per ton, up 18.4% year on year; Shandong n-butanol price was RMB7,033 per ton, up 6.27%; Shandong acrylic acid price was RMB8,158 per ton, up 14.69%; Shandong butyl acrylate price was RMB9,136 per ton, up 4.52%; NPG East China hydrogenated price was RMB8,123 per ton, down 23.42%; Shandong MTBE price was RMB5,931 per ton, up 7.84%; East China styrene average price was RMB8,888 per ton, up 10.65%; East China LLDPE film grade price was RMB7,825 per ton, up 0.57%; East China ethylene-based PVC price was RMB5,452 per ton, up 6.13%.

On the raw material side, the average price of pure benzene was RMB8,282 per ton, up 21.99%; 5,000 kcal thermal coal average price was RMB687 per ton, up 14.5%; propane CP average price was USD646 per ton, up 5.56%; butane CP average price was USD670 per ton, up 12.79%; ethane MB average price was USD166 per ton, down 12.79%; naphtha MOPJ average price was USD807 per ton, up 30.71%.

In the fine chemicals and new materials business, tightened supply of key raw materials and higher costs pushed product prices up. New energy and energy storage installed capacity grew rapidly, leading to structural shortages in battery materials and rising demand for energy storage-related materials. The company completed the ethane feed conversion project for its first ethylene unit, effectively reducing production costs. During the reporting period, the company focused on technology upgrades in MDI, TDI, ADI and other areas, achieving multiple breakthroughs in batteries, optical materials, and high-end polyolefins. It filed 358 domestic and foreign invention patents and obtained 508 grants in the first half.

Regarding profit distribution, the company plans to distribute a cash dividend of RMB8.10 per 10 shares (tax inclusive) based on the total share capital of 3.130 billion shares as of June 30, 2026, totaling RMB2.536 billion in cash dividends. On May 27, 2026, the company implemented its 2025 dividend plan of RMB12.5 per 10 shares (tax inclusive), totaling over RMB3.9 billion. As of the disclosure of this semi-annual report, the company has completed 27 cash dividends since listing, with cumulative dividends exceeding RMB54.1 billion. As of the close on August 24, the company's share price was RMB73.19, with a total market value of RMB229.1 billion.