CHINA BLUECHEM (China BlueChemical Ltd.) reported softer interim results for the six months ended 30 June 2026, as higher costs and a one-off impairment offset firmer prices in parts of its portfolio.
Revenue declined 3.9% year-on-year to RMB 5.62 billion, mainly on lower sales volumes of phosphorus, compound fertilisers and acrylonitrile products. Gross profit slipped 5.8% to RMB 798.40 million, nudging the gross margin down to 14.2% from 14.5% a year earlier.
Profit attributable to shareholders fell 20.8% to RMB 507.45 million, while total net profit dropped 43.9% to RMB 405.73 million. Basic EPS decreased to RMB 0.11 from RMB 0.14. The earnings contraction reflects: • A RMB 181.81 million impairment on long-term assets at Fudao Chemical following raw-material-driven losses. • A sharp fall in other gains to RMB 0.33 million (H1 2025: RMB 83.72 million), as last year included a one-off gain from asset disposals. • Rising feedstock and energy costs for phosphorus fertilisers and acrylonitrile.
Segment performance • Urea revenue was broadly flat at RMB 1.67 billion; higher average selling prices offset a 5.9% drop in volume. • Phosphorus and compound fertiliser revenue fell 14.9% to RMB 1.14 billion on a 23.7% volume contraction despite higher prices. • Methanol revenue rose 10.4% to RMB 1.76 billion, buoyed by a RMB 238.50 per-tonne price increase. • Acrylonitrile and related products declined 19.0% to RMB 0.87 billion on lower volumes and softer prices.
Cash flow & balance sheet Operating activities generated RMB 307.63 million in net cash, while capex reached RMB 252 million, focused on tailings pond expansion, underground mining and affordable housing. Cash and cash equivalents closed at RMB 751.17 million (31 Dec 2025: RMB 736.57 million). The gearing ratio inched up to 11.0% (31 Dec 2025: 10.7%) on higher bank borrowings and lease liabilities.
Dividend No interim dividend was proposed. The company paid a final dividend of RMB 516.32 million for FY 2025 during the period.
Outlook Management expects continued capacity additions and softer demand to pressure urea prices in H2 2026, while high raw-material costs should underpin phosphorus and compound fertiliser prices. Methanol and acrylonitrile markets are forecast to remain volatile amid fluctuating crude prices and new capacity ramp-ups.
Key initiatives for the second half include intensified safety management, expansion of high-value product markets, accelerated digital-transformation projects, increased R&D investment and advancement of carbon-rich gas and phosphorus-fluorine chemical projects.
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