Wanhua Chemical Posts Strong First-Three-Quarter Net Profit of 15.658 Billion Yuan

China's Wanhua Chemical reported a first-three-quarter net profit attributable to shareholders of CNY 15.658 billion, marking an increase of over 70% year on year and already exceeding its total earnings for all of 2025. Disclosed via its third-quarter report, the polyurethane leader saw total revenue reach CNY 185.867 billion for the period, up 28.87% from the previous year. Third-quarter revenue alone set a single-quarter record at CNY 66.551 billion, while net profit for the quarter rose by 84.38%. The company's shares closed at 70.33 yuan following the report, representing a total market value of approximately CNY 220.2 billion.

According to the financial report, the sharp surge in profitability was primarily driven by higher international chemical raw material prices and increased product pricing caused by international political and geopolitical conflicts. In addition to pricing factors, the profit improvement was supported by a simultaneous expansion of output and sales volumes across all three business segments, with the new materials segment demonstrating the fastest growth. Prices for key products such as MDI, TDI, and various petrochemicals increased noticeably starting from late July. Although raw material costs also rose substantially—with pure benzene and thermal coal up significantly year on year—operating costs grew at a slower pace than revenue, effectively widening the spread and lifting gross profit to CNY 30.633 billion.

Looking ahead, Wanhua Chemical is shifting its strategic focus toward new materials, with capital spending plans for 2026 allocating 40.5% of its investment to the emerging materials segment, surpassing spending on its traditional polyurethane business for the first time. The company is advancing lithium iron phosphate production capacity through projects like the Laizhou Green Power Industrial Park and expects to add 820,000 tons of capacity in 2026. While the profit elasticity and wider spread between product prices and raw material costs boosted recent financial results, future performance will depend on whether downstream demand holds steady and how new capacity fares amid fierce industry competition.