Link: https://links.sgx.com/1.0.0/corporate-announcements/MYXWDV9PNCSN8SEM/70bd9c49a253e09dc1c269fcf6ab7267bf75b9a033c9462ad7e1079a09f01352

Summary:

• Group revenue for the first nine months of 2025 fell 18.4% year-on-year to RMB 3.32 billion, with Q3 revenue plunging 39.8% due to reduced sales volumes and planned plant-wide maintenance shutdown.

• Net profit attributable to shareholders sank 91.5% to RMB 17.2 million (from RMB 201.9 million in 9M2024); Q3 recorded a net loss of RMB 40.6 million.

• Gross profit margin contracted to 2.7% (from 5.7%), hit by weaker product margins, higher shutdown costs (RMB 31.8 million expensed), and logistics margin compression.

• Segment review: Gas separation revenue and volumes dropped across all key products, with MTBE, propylene, and polypropylene sales declining between 4% and 38%. Logistics revenue rose 31.6%, though its margin fell from 14.2% to 6.3%.

• Administrative expenses soared 153.5% to RMB 65.9 million, reflecting the impact of fixed operating costs during production stoppage.

• Cash and cash equivalents at RMB 433 million; total assets at RMB 2.07 billion; balance sheet strengthened by rights issue in March 2025.

• No interim dividend declared, as Board focuses on stability and prudence due to ongoing sector uncertainties.

• Outlook: cautious optimism, with management highlighting continued focus on new product development, cost control, overseas market expansion, and prudent operations through 2026.