Performance Analysis Report of China's Chemical Industry in the First Half of 2025

China's chemical market pattern: structural differentiation intensifies, investment opportunities highlighted

in the first half of 2025, the Chinese industrial and commercial industry showed unprecedented structural differentiation characteristics. As the world's largest chemical production and consumption market, this change in China's chemical industry has a profound impact on the global supply chain and trade pattern. From the analysis of the performance statements of major listed companies, the industry presents an obvious trend of "ice and fire"-high value-added, technology-intensive areas have achieved leapfrog growth under the dual drive of policy support and market demand, while the traditional chemical industry is facing The double squeeze of overcapacity and rising costs.

This differentiation has brought differentiated cooperation opportunities for overseas chemical companies. For overseas buyers seeking a stable supply chain, it is important to understand the distribution of prosperity in each segment, which will directly affect procurement strategies, inventory management and long-term partner selection.

High prosperity plate analysis: The field of electronic chemicals is the most prominent, with the gross profit margin of core products such as photoresist and wet electronic chemicals exceeding 35%, mainly benefiting from the localization process of China's semiconductor industry chain and the rapid expansion of the new energy vehicle market. The potash sector also performed well, with gross potassium chloride margins reaching 62% in individual periods, thanks to global potash inventories falling to their lowest level in five years and the concentrated release of demand for spring farming in China.

The pesticide sector showed strong growth, with a profit margin of more than 25%. The Chinese government's environmental control policies for small and medium-sized pesticide companies have significantly increased the industry's entry barriers, creating greater market space and pricing power for large-scale and compliant companies. This trend provides overseas pesticide traders with a window of opportunity to establish long-term cooperation with high-quality suppliers in China.

The average profit margin in the field of new materials is more than 8%, mainly concentrated in new energy-related materials, including photoresist, bio-based materials, wet electronic chemical materials, etc. The fluorine chemical sector also performed well, with an average profit margin of more than 7.5 per cent and individual gross profit margins of more than 15 per cent for products such as R32, R125, R134a and electronic grade hydrofluoric acid. The high technical threshold and strict environmental protection requirements of fluorine chemical products constitute a strong competitive barrier.

Corporate Performance Differentiation and Market Implications: The Importance of Precise Layout

PRESSURE SITUATION OF PRESSURE PLATE: The traditional chemical fiber and refining fields are facing severe challenges. The profit margin level of spandex, polyester filament, refining and other sectors is low, with a minimum of only about 1%. These areas generally have structural problems such as overcapacity, high costs, and slowing growth of terminal consumption, which pose potential risks to the stability of global supply chains.

Benchmarking enterprise performance: From the data of 30 major listed companies, the performance differentiation is extremely obvious. Binhua's operating income increased by 61% year-on-year, mainly benefiting from the expansion of caustic soda production capacity and the increase in propylene oxide sales, but the gross profit margin grew by only 6% year-on-year, reflecting the market dilemma of "incremental non-profit.

In contrast, as a leading herbicide company in China, Xianda's profit margin increased by more than 2500 percent year-on-year, fully benefiting from the cycle of rising prices of pesticide products, and products such as pyrazolam provided strong impetus for its performance. This huge difference highlights the importance of product structure and market positioning.

Implications for Overseas Partners: Chinese chemical companies with cost control capabilities, technical barriers and global layout have shown stronger business resilience and cooperation value in the current market environment. When choosing Chinese partners, overseas chemical companies should give priority to companies with core competitiveness in high value-added fields and avoid over-reliance on traditional low-end capacity suppliers.

At present, China's chemical industry is in a period of deep adjustment, which provides a strategic window for overseas enterprises with forward-looking vision to reconfigure the supply chain and explore new cooperation opportunities.