Bohai Chemical expects a loss of over 270 million yuan in the first half of 2026, under triple pressure from raw materials, facilities, and consolidation.

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Bohai Chemical released its semi-annual performance forecast for 2026 on July 14. The company expects a net loss attributable to shareholders of listed companies of 275 million to 315 million yuan for the first half of this year (January-June), indicating significant operational pressure.

Regarding the substantial loss, the company outlined multiple core factors in the announcement: on the raw material side, disruptions from geopolitical conflicts in the Middle East kept procurement costs persistently high; on the sector side, domestic overcapacity in chemical items and sluggish downstream demand resulted in a weak overall sector ecological stability.

There are three core drags at the specific operational level:

First, the core PDH unit was shut down to a long period in the first half of the year, causing a significant contraction in propylene production and sales scales. Rigid fixed costs such as equipment depreciation and financial expenses were difficult to amortize, leading to a substantial loss in the main business segment;

Second, the consolidation of subsidiaries added pressure to the financial statements. After transferring 49% of Bohai Petrochemical's equity to the controlling shareholder at the end of might, the company's remaining stake was only 51%, however the subsidiary's losses from January to might were still fully consolidated into the report, further eroding overall profits;

Third, the new material projects had a short production cycle and capacity had not yet been released. The butyl acrylate and acrylic acid units commenced production in February and June respectively, resulting in high immediate operation, maintenance, and depreciation costs, with no stable contribution to revenue yet.

Looking at the first-quarter report data, operational pressure was already evident: Q1 2026 revenue was 603 million yuan, a year-on-year decline of 28.15%; net loss attributable to shareholders was 143 million yuan; gross margin fell to -13.44%; and the asset-liability ratio was as high as 78.76%. With continuous financial expenses, the difficulty of restoring profitability remains high.

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