Core Viewpoint - China National Chemical Corporation (Sinochem International) expects a significant net loss for the first half of 2025, with net profit attributable to shareholders ranging from -76,067 million to -89,490 million yuan, indicating a challenging financial outlook due to low product prices and operational difficulties [1][6]. Performance Forecast - The company anticipates a net profit attributable to shareholders of -80,675 million to -94,911 million yuan for the first half of 2025, with a net profit excluding non-recurring items expected to be between -76,067 million and -89,490 million yuan [1]. - The forecast has not been audited by registered accountants [1]. Previous Year Comparison - In the same period last year, the net profit attributable to shareholders was 1,232 million yuan, while the net profit excluding non-recurring items was -82,525 million yuan [1]. - Earnings per share for the previous year were 0.003 yuan [1]. Reasons for Expected Loss - The primary reason for the expected loss is the impact of the main business operations, with product prices remaining at historical lows despite efforts to enhance operational capabilities [1]. - The company is focusing on improving operational management through marketing, production efficiency, and cost reduction in the supply chain [1]. Business Segments Overview - The company operates in five main segments: basic raw materials and intermediates, high-performance materials, polymer additives, chemical materials marketing, and other segments [3]. - The basic raw materials segment includes products like epoxy chloropropane and caustic soda, while high-performance materials include epoxy resins and ABS [3]. Production and Cost Management - The company has implemented strategies to increase production efficiency, achieving a 13% year-on-year increase in capacity utilization and a 2.4% reduction in production costs [2]. - Efforts to optimize procurement and logistics have resulted in a 3.5% decrease in procurement costs and a 4.2% reduction in logistics costs [2]. Market Conditions and Challenges - The company faces challenges in various product markets, with prices for key products like acetone and ABS declining due to market conditions [5]. - The ABS segment has seen a 2% decrease in revenue, while the aramid fiber segment has experienced a 23% drop in product prices [5]. Non-Operating Losses - The company has recognized losses related to the bankruptcy of a subsidiary, which has impacted its financial results [5]. - There has been a significant reduction in government subsidies compared to the previous year, further affecting profitability [5].

Group 1 - The core viewpoint of the article highlights the ongoing weakness in the chemical industry chain, with various products in the energy and chemical markets experiencing fluctuations despite some temporary boosts from crude oil prices [1] - The polyester operating rate has fallen below 90%, with a significant decline of 7% in the last two weeks for both the spinning and weaving operating rates [1] - The downstream operating rates for styrene have also decreased, with the largest downstream EPS operating rate dropping by 4.8% [1] Group 2 - Crude oil prices are experiencing fluctuations as OPEC+ considers increasing production in September, leading to a continued consolidation in the market [1] - The cost support for LPG is weakening, maintaining a loose fundamental outlook, while asphalt and high-sulfur fuel oil face significant downward pressure [1] - Methanol's spot support is limited, and the market is expected to remain volatile, while urea supply and demand are both weak, with short-term fluctuations anticipated [1] Group 3 - Ethylene glycol's downstream operating rate has declined, while its own operating rate has increased, indicating a bearish outlook in the short term [1] - PX and PTA have rebounded due to a general rise in commodity prices, while short fiber operating rates remain stable, following raw material fluctuations [1] - The market outlook for the energy and chemical sectors is expected to remain weak, awaiting new supply and demand drivers [1]