Lubei Chemical Expects First-Quarter Net Profit to Rise 57.29% as Cost Control Delivers Clear Results

Lubei Chemical (600727) released its first-quarter 2026 earnings pre-announcement on the evening of April 16, forecasting net profit attributable to shareholders of 56.64 million yuan, up 57.29% year on year, with performance coming in above market expectations.

Cost reduction and technological upgrading drive growth together

The announcement shows that during the reporting period, the company continued to pursue a development strategy that gave equal weight to cost reduction, efficiency improvement, and technological upgrading. Through process optimization, equipment upgrades, and R&D efforts, the company significantly reduced energy consumption in production and effectively improved overall operating efficiency.

On the cost side, the company said it strictly implemented a refined procurement management strategy, closely tracked price trends for major raw materials, prioritized better suppliers, and carefully timed purchases. As a result, procurement prices for major raw materials fell noticeably year on year, effectively reducing unit production costs.

Product mix optimization also supported earnings growth

Beyond cost control, Lubei Chemical also made positive progress on the product side. The company continued to optimize its product mix, and sales volumes of some key products increased year on year. At the same time, several other products benefited from stable customer channels and relatively strong market competitiveness, with sales moving smoothly and providing further support for earnings growth.

Profitability continues to improve

Taken together, supported by effective cost control and continued product structure optimization, the profitability of Lubei Chemical’s products improved significantly. Net profit attributable to the parent company rose sharply from a year earlier, reflecting the company’s ability to maintain strong operational resilience and earnings power even in a complex market environment.

Market analysts noted that this expected earnings increase was driven mainly by the company’s dual efforts in cost control and product mix optimization. At a time when the chemical industry as a whole is facing raw material price fluctuations and intensifying competition, Lubei Chemical has managed to improve efficiency and reduce costs through refined management and technological innovation, laying a solid foundation for future development.