Hz info:On August 12, Satellite Chemical (002648.SZ) released its 2025 semi-annual report. The report shows that the company achieved operating revenue of RMB 23.460 billion, a year-on-year increase of 20.93%; net profit attributable to shareholders reached RMB 2.744 billion, up 33.44% YoY; and net profit after extraordinary items totaled RMB 2.896 billion, rising 28.61% YoY. Basic earnings per share stood at RMB 0.81.

During the reporting period, the company’s core business revenue demonstrated steady growth. Functional chemical products generated RMB 12.217 billion, accounting for 52.08% of total revenue and growing 32.12% YoY, serving as the primary growth driver. The polymer new materials segment contributed RMB 5.245 billion (22.36% of revenue), with a high gross margin of 29.54% despite a slight YoY dip of 4.43%. Notably, overseas business achieved a breakthrough, with international revenue surging 82.10% YoY to represent 13.90% of total revenue, reflecting accelerating global expansion.

Satellite Chemical attributed its growth to three strategic initiatives:

1. High-End Materials: The company established dedicated R&D teams and invested RMB 3 billion to build a high-performance catalyst R&D platform for metallocene polyethylene (mPE) and polyolefin elastomers (POE)—materials with less than 60% domestic production. These products command a premium exceeding 30% per ton. Additionally, it pioneered hydrocarbon-based immersion cooling fluids for data centers, aligning with green technology trends.

2. Integrated Supply Chain: In the C2 sector, it maintained over 20% market share in ethanolamine and polyether macromonomers, securing top-two industry positions. Customized 800k-ton polyethylene and 400k-ton polystyrene capacities enabled entry into core home appliance supply chains. In the C3 sector, leveraging its position as the world’s second-largest acrylic acid producer, it completed an industrial chain loop via the 800k-ton polycarbon alcohols project in Jingzhou, Hubei. Future plans include expanding acrylic acid capacity in Pinghu and Jiaxing to upgrade superabsorbent polymers (SAP) and polymer emulsions.

3. Global Market Expansion: Capitalizing on Europe’s annual ethylene capacity reduction of 4.3 million tons, Satellite Chemical exported acrylic acid/esters and polyether macromonomers to 160+ countries, driving the 82.10% overseas revenue surge.

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In innovation and sustainability, the company made significant strides:

• R&D investment hit RMB 773 million in H1, with 122 new patent applications and 57 authorizations. A five-year plan allocates over RMB 10 billion for a global "1+N" new materials innovation platform.

• Sustainability achievements include "National Green Factory" and "Green Supply Chain" certifications. MSCI ESG rating rose to BBB, while Wind ESG rating reached AAA. Its low-temperature cold energy recovery system saves 300,000 tons of standard coal annually, maintaining industry-leading carbon emission intensity. These advantages position the company to thrive under China’s carbon market and the EU’s Carbon Border Adjustment Mechanism (CBAM).

Despite progress, Satellite Chemical faces challenges: localizing high-end polyolefins, oil/gas price volatility, and EU carbon tariffs. To mitigate risks, it plans RMB 8.965 billion in derivatives hedging and will deepen green technology upgrades to solidify emission-reduction leadership.

For shareholder returns, the company distributed a 2024 annual cash dividend of RMB 0.50 per share (tax-inclusive), totaling RMB 1.678 billion. Over the past three years, cumulative dividends reached RMB 3.988 billion—86% of average annual net profit—fulfilling its commitment to "share development dividends."