Wanhua Chemical H1 Net Profit Falls 25 Percent to 6.12 Billion Yuan Eyes MDI Expansion and New Materials Breakthroughs

Wanhua Chemical (600309.SH) reported first-half revenue of 90.9 billion yuan, down 6.35% year-on-year, with net profit attributable to shareholders dropping 25.1% to 6.12 billion yuan. The company’s portfolio covers polyurethanes, petrochemicals, specialty chemicals, and new materials.

The polyurethane segment posted sales of 36.89 billion yuan, driven by solid demand from new energy vehicles and high-end manufacturing, though overseas construction demand lagged expectations. MDI capacity will be boosted to 4.5 million tons annually by 2026, up from the current 3.8 million tons, as the Fujian plant adds another 700,000 tons. TDI capacity stood at 1.11 million tons by the end of 2024.

Market prices for pure MDI averaged 18,800 yuan/ton, polymeric MDI at 16,700 yuan/ton, TDI at 12,400 yuan/ton, and flexible polyether at 7,800 yuan/ton in H1 2025.

Petrochemical revenues reached 34.93 billion yuan, with profits squeezed by a glut of new olefin supply and falling prices.

Specialty chemicals and new materials brought in 15.63 billion yuan, bolstered by innovation and new production lines. Wanhua’s optical-grade MS resin (50,000 tons/year) was launched, and the company achieved a full vitamin A production chain, formally entering the nutrition sector. R&D milestones included scalable tertiary butylamine, bio-based 1,3-butanediol for cosmetics, and breakthroughs in battery and high-end polymer materials.

Additionally, Yantai Industrial Park saw 14 major overhauls completed, with the second 1.2 million ton/year ethylene unit successfully started, and the first unit upgraded for ethane feed, expected to cut costs and boost margins.

Wanhua Chemical is accelerating its transformation by advancing high-value products and expanding into new markets, positioning itself for future growth despite current headwinds.