What happened? Wanhua Chemical Group Co., Ltd. (Wanhua Chemical) reported a simultaneous decline in revenue and net profit. According to the company's announcement on the evening of October 24, profitability indicators fell year-on-year due to lower sales prices of key products.
Financial results show that in the first three quarters of 2025, Wanhua Chemical generated revenue of 144.226 billion yuan, down 2.29% year-on-year. Net profit attributable to shareholders dropped 17.45% to 9.157 billion yuan, while adjusted net profit declined 16.72% to 9.101 billion yuan. However, the third quarter alone saw improved performance, with revenue rising 5.52% year-on-year to 53.324 billion yuan and net profit increasing 3.96% to 3.035 billion yuan.
The company maintained stable production and sales across its three core business segments: - **Polyurethane Series**: Sales revenue of 55.143 billion yuan, with production and sales volumes reaching 4.54 million tons and 4.58 million tons, respectively. - **Petrochemical Series & Trading**: Sales revenue of 59.319 billion yuan, with production and sales volumes at 4.78 million tons and 4.60 million tons. - **Fine Chemicals & New Materials**: Sales revenue of 23.811 billion yuan, with production and sales volumes of 1.89 million tons and 1.84 million tons.
**Price Trends**: - Polyurethane products saw mixed price movements. Pure MDI averaged 18,300 yuan/ton, while polymer MDI fell to 15,200 yuan/ton due to weaker demand in construction. TDI tightened supply, averaging 14,700 yuan/ton, and soft foam polyether remained stable at 8,000 yuan/ton. - Petrochemical product prices declined overall, with key materials like propylene, n-butanol, and MTBE dropping 6.83%, 20.57%, and 19.87% year-on-year, respectively.
**Cost Pressures**: - Key raw material prices fell, partially offsetting product price declines. Benzene averaged 5,905 yuan/ton (down 30.05%), thermal coal dropped 20.61%, and propane/butane prices fell 9.12% and 11.96%, respectively. - Despite lower input costs, gross margin contracted by 1.94 percentage points due to product price declines.
**Cash Flow & Expansion**: - Operating cash flow decreased 11.83% to 17.022 billion yuan, while investment cash outflow reached 24.918 billion yuan. Financing cash inflow was 18.691 billion yuan. - Total assets grew 11.93% to 328.324 billion yuan, with fixed assets and construction-in-progress nearing 190 billion yuan, signaling continued capacity expansion.
Wanhua Chemical is advancing its ethylene-based petrochemical industrial park and expanding into high-value segments like specialty chemicals, electronic materials, and new energy products (e.g., lithium battery materials, biodegradable plastics). The company is also optimizing global production layouts to enhance market proximity and risk diversification.
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