Luxi Chemical's 2025 Net Profit Expected to Drop 45%-58%

Recently, Luxi Chemical (000830) disclosed its 2025 performance forecast, indicating an expected year-on-year decline in the company's annual operating performance. Both net profit attributable to shareholders and net profit after deducting non-recurring gains and losses are projected to show double-digit decreases, primarily due to significant impacts from the overall environment of the chemical industry.

The performance forecast reveals that Luxi Chemical is expected to achieve a net profit attributable to shareholders of 850 million to 1.1 billion yuan in 2025, a decrease of 45.78% to 58.1% compared to 2.029 billion yuan in the same period last year. Net profit after deducting non-recurring gains and losses is projected to be 650 million to 900 million yuan, down 54.12% to 66.87% from 1.962 billion yuan in the previous year. Basic earnings per share are expected to be 0.446 yuan to 0.578 yuan per share, significantly lower than the 1.065 yuan per share reported in the same period last year.

It is reported that the financial data related to this performance forecast has not yet been audited by an accounting firm. However, the company has pre-communicated the forecast matters with the signing certified public accountant of the annual report audit accounting firm, and no major disagreements exist between the two parties. The company cautions that the above performance figures are preliminary estimates, and specific details will be further disclosed in the 2025 annual report. Investors are advised to be aware of investment risks.

Public information shows that Luxi Chemical's main business covers chemical new materials, basic chemicals, fertilizer products, and other operations, making it one of the key enterprises in China's chemical industry. Regarding the core reasons for the performance change, the company explicitly stated in the announcement that during the reporting period, due to multiple factors such as fluctuations in oil prices and a sluggish chemical product market, downstream demand for the company's chemical products remained weak. Additionally, the decline in prices of major products was greater than the decrease in raw material prices, leading to a narrowing of product margins and ultimately dragging down the company's overall operating performance year-on-year.

Notably, amid the performance pressure, Luxi Chemical is optimizing its business layout through resource integration. Previously, the company collaborated with Cangzhou Dahua and Sinochem Plastics Co., Ltd., a wholly-owned subsidiary of Sinochem International, to jointly establish a polycarbonate joint venture to promote synergistic business development.

It is understood that the joint venture is tentatively named Sinochem Polycarbonate Sales (Liaocheng) Co., Ltd., with the final name subject to industrial and commercial registration. The registered capital is 5 million yuan, with Luxi Chemical contributing 2.55 million yuan for a 51% stake, Cangzhou Dahua contributing 1.5 million yuan for a 30% stake, and Sinochem Plastics contributing 950,000 yuan for a 19% stake. All three parties are using their own funds for the investment. The joint venture's business scope is planned to include the sales of engineering plastics and synthetic resins, with its registered address located in the High-Tech Industrial Development Zone of Liaocheng City, Shandong Province.

Luxi Chemical stated that the core purpose of this tripartite cooperation to establish a joint venture is to effectively fulfill the relevant commitments of state-owned shareholders regarding同业竞争, mitigate the adverse effects of同业竞争, and integrate the sales resources of the three parties in the polycarbonate field. This initiative aims to improve market synergy efficiency, reduce operating costs, further enhance and strengthen the company's sales industry chain layout, and achieve higher-quality development.

It is reported that the ultimate controlling party of Luxi Chemical, Cangzhou Dahua, and Sinochem International (including Sinochem Plastics) is China Sinochem Holdings Co., Ltd., a subsidiary of the State-owned Assets Supervision and Administration Commission of the State Council. This joint investment constitutes a connected transaction. The relevant proposals have been reviewed and approved by Luxi Chemical's special meeting of independent directors and the 14th meeting of the ninth board of directors, with connected directors abstaining from voting as required. The voting results were unanimously in favor. Analysts believe that this joint venture marks a substantive step in the internal integration of the chemical sector within China Sinochem, potentially enhancing the three parties' market bargaining power in the polycarbonate field. This move aligns with the direction of optimizing state capital layout and promoting high-quality development of listed companies.