In the third quarter, due to a year-on-year decline in product prices, a year-on-year increase in product costs, and a decrease in gross profit, Wanhua Chemical's net profit was 2.919 billion yuan, down 29.41% year on year, and total revenue was 50.537 billion yuan, up 12.48% year on year.
In the third quarter, due to a year-on-year decline in product prices and a year-on-year increase in the price of main raw materials, an increase in product costs and a decrease in gross profit, Wanhua Chemical's net profit fell 29.41% year on year.
On Monday, October 28, Wanhua Chemical released financial results for the third quarter:
1) Main financial data:
- Total revenue for the third quarter: RMB 50.537 billion, up 12.48% year on year; total revenue for the first three quarters was RMB 147.604 billion, up 11.35% year on year.
- Net profit for the third quarter: RMB 2.919 billion, down 29.41% year on year; revenue for the first three quarters was RMB 11.093 billion, down 12.67% year on year.
- Earnings per share for the third quarter: RMB 0.93, down 29.55% year on year; revenue for the first three quarters was RMB 3.53, down 12.54% year on year.
- Net profit for the third quarter after deducting non-recurring profit and loss: RMB 2.829 billion, a year-on-year decrease of 31.30%.
Total assets as of the end of the third quarter: RMB 309.641 billion, RMB 253.04 billion at the end of 2023.
2) Main products
- Polyurethane series sales revenue in the third quarter: RMB 54.245 billion, output 4.21 million tons, sales volume 4.1 million tons.
- Third quarter petrochemical series sales revenue: 61.978 billion yuan, output 4.07 million tons, sales volume 4.07 million tons.
- Third quarter fine chemicals and new materials series sales revenue: 19.999 billion yuan, output 1.45 million tons, sales volume 1.42 million tons.
Wanhua Chemical Group Co., Ltd. is a new chemical materials company operating globally. Its business covers five major industrial clusters: polyurethane, petrochemicals, fine chemicals, emerging materials, and future industries. The industries it serves mainly include: household, sports and leisure, automobile transportation, construction industry, electronics, personal care, and green energy.
Today, Wanhua Chemical closed up 2.42% to 79.60 yuan/share, with a market capitalization of 244.02 billion yuan.
Downstream demand for polyurethane is weak, and prices of some products show a downward trend
Wanhua Chemical said that demand for pure MDI products was sluggish in the third quarter, inventory of downstream finished products was high, industry turnover intensified, and the average market price was around 19,500 yuan/ton.
Demand for refrigerators and freezers rose in the third quarter due to the trade-in policy, demand in the construction market improved slightly, and the export market remained stable. The average market price of polymeric MDI products was around 17,800 yuan/ton.
Due to the high inventory of raw materials and finished products in the home furnishing industry, demand in the TDI market was weak, and the average market price in the third quarter was around 13,500 yuan/ton.
Demand in the home and automobile industry declined year-on-year in the third quarter, and the average market price of polyether in the third quarter was around 8,700 yuan/ton.
In terms of petrochemical products, prices have declined overall compared to the same period last year, and industrial chain profits have also shrunk.
