Hengli Petrochemical Co Ltd Financial Update
Hengli Petrochemical Co., Ltd., a prominent player in the chemical fibers industry, has recently released its mid-year financial report for 2025. The company, headquartered in Dalian, China, and listed on the Shanghai Stock Exchange, reported a net profit of 30.50 billion CNH for the first half of 2025. This figure represents a 24.08% decrease compared to the same period last year. The company’s total operating revenue stood at 1039.44 billion CNH, marking a 7.68% decline year-over-year. The basic earnings per share were reported at 0.43 CNH.
Shareholder Movements
In recent developments, Hong Kong Central Clearing Limited increased its holdings in Hengli Petrochemical by 10.76%, bringing its total to 2.391 billion shares. This move positions the company as the fourth-largest shareholder with a 3.4% stake in the company’s circulating A-shares. Other major shareholders include Hengli Group Co., Ltd. with 21.01 billion shares (29.84%), and Hengli Investment (Dalian) Co., Ltd. with 14.98 billion shares (21.29%).
Financial Health and Outlook
Despite the decline in net profit, Hengli Petrochemical’s overall financial health remains robust. The company has demonstrated excellent cash flow management, with operating activities generating a net cash flow of 194.77 billion CNH. The cash received from sales of goods and services amounted to 1227.98 billion CNH. The company’s total assets at the end of the reporting period were valued at 2735.10 billion CNH, with accounts receivable totaling 9.52 billion CNH.
The company’s financial performance over the past five years has been characterized by strong operational capabilities, growth potential, asset quality, and profitability, although its debt repayment ability is considered average. Hengli Petrochemical has outlined its strategic plans in the “Quality Improvement and Efficiency Enhancement for Better Returns” action plan for 2025, building on the previous year’s initiatives.
Market Context
The chemical sector, including Hengli Petrochemical, has seen increased attention due to the rising demand for AI cooling solutions, which has positively impacted the fluorine liquid board. The company’s performance is closely watched by investors, especially in light of the broader market trends and the potential for structural opportunities following the exit of major players like 3M from the global fluorine liquid market.
As of August 20, 2025, Hengli Petrochemical’s closing price was 16.81 CNH, with a market capitalization of 105,300,000,000 CNH. The price-to-earnings ratio stood at 16.788. The company’s stock has shown resilience, with its price recently breaking above the five-day moving average, indicating potential investor confidence in its future prospects.
In summary, while Hengli Petrochemical faces challenges in terms of declining profits and revenue, its strong financial fundamentals and strategic initiatives position it well for future growth and stability in the competitive chemical industry.