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 manufacturing and commercial sector showed unprecedented structural differentiation characteristics. As the world's largest chemical production and consumption market, this change in China's chemical sector has a profound impact on the global supply chain and trade pattern. From the analysis of the performance statements of major listed companies, the sector presents an obvious direction of "ice and fire"-high value-added, methodology-intensive areas have achieved leapfrog development under the dual drive of policy support and market demand, while the traditional chemical sector is facing The double squeeze of overcapacity and rising costs. This differentiation has brought differentiated cooperation opportunities to overseas chemical companies. to overseas buyers seeking a stable supply chain, it's crucial to understand the distribution of prosperity in each segment, which will immediately affect procurement strategies, inventory regulation and prolonged partner selection. High prosperity plate analysis: The field of electronic chemicals is the most prominent, with the gross profit margin of core items such as photoresist and wet electronic chemicals exceeding 35%, mainly benefiting from the localization process of China'semiconductor sector chain and the rapid expansion of the new energy vehicle market. And The potash sector also performed well, with gross potassium chloride margins reaching 62% individual periods, thanks to global potash inventories falling to their lowest level in five years and the concentrated emit of demand to spring farming in China. But The pesticide sector showed strong development, with a profit margin of greater than 25%. The Chinese government's environmental manage policies to small and medium-sized pesticide companies have signifiis able totly increased the sector's entry barriers, creating greater market space and pricing power to extensive and compliant companies. This direction provides overseas pesticide traders with a window of opportunity to establish prolonged cooperation with high-condition suppliers in China. Moreover The average profit margin in the field of new materials is greater 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 greater than 7. 5 per cent and individual gross profit margins of greater than 15 per cent to items such as R32, R125, R134a and electronic grade hydrofluoric acid. The high technical limit and stringent ecological preservation standards of fluorine chemical items 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. I've found that 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 development of terminal consumption, which pose possible 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. I've found that 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, however the gross profit margin grew by only 6% year-on-year, reflecting the market dilemma of "incremental non-profit. According to research In contrast, as a leading herbicide company in China, Xianda's profit margin increased by greater than 2500 percent year-on-year, fully benefiting from the cycle of rising prices of pesticide items, and items such as pyrazolam provided strong impetus to its performance. In particular This huge difference highlights the importance of product structure and market positioning. Implications to Overseas Partners: Chinese chemical companies with cost manage capabilities, technical barriers and global layout have shown stronger business resilience and cooperation value in the current market ecological stability. When choosing Chinese partners, overseas chemical companies should give priority to companies with core competitiveness in high value-added fields and prevent over-reliance on traditional low-end capacity suppliers. At present, China's chemical sector is in a period of deep adjustment, which provides a strategic window to overseas companies with forward-looking vision to reconfigure the supply chain and explore new cooperation opportunities.