Sanmei Posts 139 Percent Profit Surge Driven by Refrigerant Price Boom

On April 11, Sanmei Corporation announced its 2025 Q1 earnings forecast, projecting a net profit of 3.69 to 4.28 billion yuan, representing a year-on-year increase of 139.41% to 177.71%. Excluding non-recurring items, net profit is expected to reach 3.65 to 4.24 billion yuan, up 136.29% to 174.58% compared to the same period last year.

The company attributes this growth to significant price increases for fluorochemical refrigerants, driven by supply-demand improvements. In 2025, quotas for second-generation refrigerants (HCFCs) were further reduced, while third-generation refrigerants (HFCs) remained under production quota restrictions. As downstream demand surged, market prices continued to climb, boosting Sanmei’s profitability.

A leader in the fluorochemical industry, Sanmei boasts a vertically integrated production chain, including anhydrous hydrogen fluoride, refrigerants, and fluorine-based foaming agents. The company has benefited from supply-side optimizations and rising refrigerant prices, entering a high-growth trajectory since 2024. Last year, Sanmei forecast 2024 net profits of 7.02 to 8.14 billion yuan, a 150.87% to 191.01% surge year-on-year.

According to Yuan Shuai, Deputy Secretary-General of the Z-Park IoT Industry Alliance, structural shifts in supply-demand dynamics under quota management have fueled this growth. The 2025 home appliance subsidy program, with unprecedented support, is expected to further stimulate downstream demand. Additionally, the rise of electric vehicles and upgraded thermal management systems has opened new markets for refrigerants, ensuring sustained demand growth.