-- Wanhua Chemical Group (SHA:600309) seeks continuous international expansion despite its 2025 profit declining amid geopolitical tensions and more challenges brought by the Iran war.
The chemical company's net profit attributable to shareholders fell 3.9% year on year to 12.5 billion yuan, or 3.99 yuan per share. The attributable shares a year earlier was approximately 13 billion yuan, or 4.15 yuan per share, according to the company's 2025 earnings report published Tuesday on the Shanghai bourse.
Operating revenue rose 12% to 203.2 billion yuan from 182.1 billion yuan.
In its earnings report statement, Wanhua said the Chinese petrochemical industry remained stable in 2025 despite facing external challenges, such as persistently low prices, as well as the tariff hikes and trade frictions with the U.S.
"Through continuous investment in technological innovation, ongoing expansion of its global footprint, and the deepening of an excellent operational system, the company has maintained rapid development," the company said in its earnings report statement.
Wanhua is a major producer of methylene diphenyl diisocyanate or MDI, a chemical used in the production of polyurethane products. Polyurethane is widely used in various industries such as chemicals, textiles, building materials and transportation.
In 2025, the company earned revenue of 19.3 billion yuan from the sales of polyurethane. About 1.7 million tons of polyurethane were sold, according to another bourse filing from the company.
Wanhua generated 20.5 billion yuan from the sale of petrochemical and 10.3 billion yuan from selling fine chemicals and new materials.
The petrochemical industry faces more challenges this year, especially with the ongoing Middle East war, which has brought oil price shocks globally. The global oil supply became even more suppressed as Iran initiated the closure of the Strait of Hormuz. However, analysts believe that China has ample supply to weather the crisis.
China imported 5.4 million barrels per day during the first quarter, but it reportedly has secret reserves that may likely replace imports through the Strait of Hormuz for seven months, according to an April 1 article on Reuters.
China is also looking at focusing on other energy sources, such as renewable energy, which could gain more demand amid the oil crisis.
"The response of consumers and businesses across developed and developing markets to the current surge in energy prices will almost surely be an acceleration in demand for renewable energy products and electric vehicles, which China is globally dominant in and has ample spare capacity to produce and ship," Elliot Clarke, Westpac's head of international economics, said.