SINOCHEM INTERNATIONAL(SH:600500)2025-01-17 10:55Financial Performance Expectations - The company expects a net profit attributable to shareholders of the parent company for 2024 to be between -2,284.7 million RMB and -2,855.87 million RMB, with a net profit excluding non-recurring gains and losses estimated between -3,085.68 million RMB and -3,857.10 million RMB[3]. - The previous year's net profit attributable to shareholders was -1,847.74 million RMB, and the net profit excluding non-recurring gains and losses was -2,342.45 million RMB[5]. - The company reported an earnings per share of -0.52 RMB for the current period[6]. Market Conditions and Challenges - The main reasons for the expected loss include a weak global economic recovery, reduced demand for chemical products, and a significant decline in prices for key products like epoxy chloropropane and epoxy resin, which are at historical lows[7]. - The gross margin for the basic raw materials and intermediates segment is expected to decline by approximately 3-15 percentage points compared to 2023 due to increased competition and reduced demand[8]. - The epoxy resin market is facing a downturn, with a 17% increase in production capacity leading to a significant drop in prices, while the average operating rate is only 55%[10]. - The company is facing a challenging environment with geopolitical tensions and economic uncertainties affecting overall demand and pricing strategies[7]. - The small power market is experiencing weakened demand for A-grade batteries due to government policies favoring lead-acid batteries and increased competition from lower-grade products[20]. Asset Management and Impairments - The company anticipates a long-term asset impairment provision of approximately 1.3 billion to 1.9 billion RMB due to potential impairments in the lithium battery business and other segments[14]. - The company anticipates impairment provisions for goodwill and long-term assets in the 2024 annual report, with the final impairment amount to be determined by external evaluators and auditors[21]. Strategic Initiatives and Future Outlook - In 2025, the company aims to enhance core competitiveness by focusing on customer-centric strategies, technological innovation, and operational efficiency improvements[22]. - The chemical market is expected to recover as new capacity growth slows and environmental policies lead to the elimination of outdated production capacity[23]. - The company emphasizes the importance of investor communication and sustainable development to enhance its investment value and fulfill its responsibilities as a listed company[23]. Regulatory and Competitive Landscape - The competitive landscape in the lithium battery sector is intensifying, with the top 10 domestic battery manufacturers holding a market share of 96% in 2024, resulting in reduced survival space for non-leading companies[18]. - The U.S. government announced a 100% tariff on electric vehicles and a 25% tariff on lithium batteries starting September 27, 2024, adversely affecting the company's export business[19]. Financial Reporting and Forecasting - There are no significant uncertainties affecting the accuracy of the performance forecast, which has not been audited by registered accountants[24]. - The forecast data is preliminary, and the final financial figures will be disclosed in the official 2024 annual report, urging investors to be cautious of investment risks[25]. - The company confirmed a non-operating gain of approximately 840 million RMB from the asset securitization project, positively impacting the net profit attributable to shareholders[13]. Business Development - The polymer additives segment is expanding its business in plastic additives while maintaining its position as a leading supplier of rubber additives[11].