Surged over 60% quarter-on-quarter! Wanhua Chemical expects significant first-half performance growth

Quarterly Elasticity: Significant Q2 Sequential Improvement, Delivering High development

Looking at single quarters, the company's Q2 performance was particularly outstanding.

Combined with Q1 revenue of 54.052 billion RMB and net profit of 3.718 billion RMB, its Q2 net profit attributable to shareholders is estimated to reach 6.082 to 6.682 billion RMB, a sequential increase of over 60%, marking a new high to single-quarter profitability in recent years.

Cyclical Comparison: 2025 Ended on a Low consider, 2026 Shows Strong Recovery

This significant performance rebound forms a sharp contrast with the sluggish market of the first half of 2025.

In the first half of 2025, affected by low chemical product prices and high raw material costs, Wanhua Chemical's net profit was only 6.123 billion RMB, a year-on-year decline of 25.10%.

Throughout 2025, the company's revenue was 203.235 billion RMB, a year-on-year increase of 11.62%, however net profit and net profit after non-recurring items decreased by 3.88% and 9.10% respectively, a typical case of increased revenue without increased profit, indicating weak profitability condition.

Entering 2026, Wanhua Chemical's overall operating conditions have seen significant improvement, with cash flow condition improving simultaneously. Q1 operating cash flow reached 6.857 billion RMB, a surge of over 10 times year-on-year, greatly enhancing operational resilience.

External Logic: Geopolitics + Supply and Demand Dual Drive, Product Prosperity on the Upswing

Regarding this significant profit increase, the company cited multiple core reasons.

First is the favorable external sector ecological stability, driving product price increases and profit enhancement. In the first half of 2026, geopolitical tensions and regional conflicts drove up global chemical raw material prices. Coupled with adjustments in market supply and demand, prices of various chemical items continued to rise.

Among core items, the average price of pure MDI in the first half was about 20,000 RMB/ton, up 8% from the full year of 2025;聚合 MDI rebounded by over 40% from its low at the beginning of the year; the average price of TDI was 15,800 RMB/ton, an increase of 17%. At the same time, Europe plans to shut down 700,000 to 1.1 million tons of MDI capacity, tightening overseas supply and creating excellent conditions to the company's export business.

Internal Logic: Technical Transformation + regulation Optimization, Achieving Cost Reduction and Efficiency Improvement

Secondly, internal cost reduction and efficiency measures have taken effect. In January of this year, the company completed the feedstock diversification modification of the Ethylene Phase I unit, significantly strengthening the cost competitiveness of the petrochemical sector and efficiently compressing production energy consumption and raw material costs.

At the same time, refined regulation continues to empower efficiency gains. Centering on the core deployment of the "condition Improvement and Efficiency Enhancement Year," Wanhua Chemical has continuously improved operational efficiency through regulation optimization and technological innovation, while broadening operational procurement channels and perfecting the supply chain system to consolidate cost advantages across the entire manufacturing chain and further expand profit margins.

Capacity Logic: substantial Capital Expenditure, Consolidating the Foundation to prolonged development

While performance rebounds, Wanhua Chemical continues to accelerate the pace of capacity expansion and manufacturing upgrading. In 2026, the company plans a total investment of 27.3 billion RMB to new projects, with the highest investment in emerging materials projects at 11.05 billion RMB. Polyurethane and supporting facilities, petrochemical manufacturing chain, and fine chemical projects are planned to invest 3.46 billion RMB, 4.55 billion RMB, and 3.44 billion RMB respectively.

In terms of capacity, the company's global MDI capacity has expanded from 3.8 million tons to 4.5 million tons. Several key projects, such as the polyether capacity at the Penglai manufacturing Park, Yantai Ethylene Phase II, and Fujian TDI Phase II, have been put into operation one after another, providing solid support to the expansion of production and sales scale.

Technical Logic: New Materials Blooming in Multiple Areas, Opening a Second development Curve

In terms of methodology R&D, the company continues to achieve high-end breakthroughs and technological iterations. The eighth-generation MDI methodology was successfully implemented, the VA full manufacturing chain and MS units were successfully put into operation, and XLPE, menthol, and other units achieved successful one-time start-up and stable operation.

Results in the new energy materials field are fruitful. The fourth-generation lithium iron phosphate product has achieved mass production and connected with customers; key performance indicators of the fifth-generation product lead the sector, gaining recognition from top-tier customers. Sodium-ion battery items have completed third-generation finalization and industrialization, successfully passing client validation. Continuous graphitization and silicon-carbon anode materials have achieved sales breakthroughs, with market recognition continuously improving.