Jinyuan Hchem 2025 Results: Revenue Down 16.20% to RMB2.60 Billion, Attributable Loss at RMB34.28 Million

Henan Jinyuan Hydrogenated Chemicals Co., Ltd. (Jinyuan Hchem) released its audited results for the year ended 31 December 2025.

Revenue and Profitability • Revenue fell 16.20% year on year to RMB2.60 billion, mainly due to a 21.80% drop in average selling prices of hydrogenated benzene-based chemicals. • Gross profit decreased 56.90% to RMB30.88 million; gross margin narrowed to 1.19% from 2.31% in 2024. • The Group reported a loss attributable to shareholders of RMB34.28 million, versus a loss of RMB16.04 million in 2024. Basic loss per share widened to RMB0.04.

Segment Performance • Hydrogenated benzene-based chemicals revenue declined 17.76% to RMB1.96 billion; segment loss was RMB23.31 million, with a gross margin of ‑1.2%. • Energy products revenue (coal gas, LNG, hydrogen) slipped 8.40% to RMB553.77 million; segment profit fell 49.93% to RMB48.74 million, gross margin at 8.8%. • Trading revenue (LNG, refined oil, hydrogen retail) decreased 24.84% to RMB82.96 million; segment profit dropped 20.78% to RMB4.88 million, gross margin at 5.9%.

Costs and Expenses • Cost of sales declined 15.26% to RMB2.57 billion, broadly in line with revenue contraction. • Selling and distribution expenses fell 17.85% to RMB13.37 million; administrative expenses cut 15.16% to RMB38.13 million. • Finance costs decreased 12.46% to RMB14.42 million, reflecting lower average borrowings.

Cash Flow and Financial Position • Net cash from operating activities rose to RMB124.43 million (2024: RMB96.86 million), supported by inventory reduction and lower bills receivable. • Net cash used in investing activities narrowed to RMB32.92 million, primarily due to time-deposit movements and a RMB4.90 million dividend from the joint venture. • Net cash used in financing activities totalled RMB85.81 million after bank-loan repayments of RMB331.20 million and RMB22.85 million dividends paid to non-controlling interests. • Year-end cash and bank balances stood at RMB142.25 million (2024: RMB136.77 million). • Total interest-bearing borrowings declined 14.19% to RMB286.65 million, cutting the gearing ratio to 27.3% (2024: 30.6%).

Capital Expenditure and Commitments • Additions to property, plant and equipment amounted to RMB43.22 million in 2025. • No outstanding capital commitments were reported as at 31 December 2025.

Joint Venture Contribution • The 49%-owned Henan Jinjiang Refinery posted a loss, leading to a RMB1.82 million share of loss versus a RMB0.39 million profit contribution in 2024.

Dividend • In light of the full-year loss, the Board proposed no final dividend for 2025.

Strategic Developments • Following the 2023 capacity expansion, hydrogenated benzene-based chemicals annual capacity stands at 400,000 tonnes. • Plans include upgrading LNG facilities to raise capacity from 75,000 tonnes to 88,000 tonnes per annum by Q3 2026. • Five operational hydrogen refuelling stations sold 1,552 tonnes of hydrogen in 2025, supporting the Group’s hydrogen energy strategy.

Looking Ahead The Group will continue to focus on enhancing production efficiency in existing product lines, expanding LNG capacity, and advancing the hydrogen energy business, subject to market conditions and internal resource allocation.