HK Stock Market Move | SHANGHAI PECHEM (00338) fell nearly 3%, with a decrease of 11% in revenue in the first three quarters compared to the same period last year. Sales of finished oil products are lower than expected.

SHANGHAI PECHEM (00338) fell by nearly 3%, dropping by 2.22% to HK$1.32 as of the time of writing, with a trading volume of HK$98.303 million. On the news front, recently, SHANGHAI PECHEM released its third quarter report for the year 2025, with the group achieving operating revenue of RMB 58.886 billion, a year-on-year decrease of 10.77%. The net loss attributable to shareholders of the listed company was RMB 432 million, with a basic loss per share of RMB 0.041. The announcement stated that from the beginning of the year to the end of the reporting period, due to a decrease in sales of petroleum products, the company's operating performance turned from profit to loss compared to the same period last year. UBS pointed out that SHANGHAI PECHEM's revenue for the first nine months of 2025 decreased by 11% year-on-year, with a net loss of RMB 432 million. Benefiting from the gradual reduction in impairment losses, the company recorded a net profit of RMB 31 million in the third quarter, turning from loss to profit on a quarterly basis. However, due to lower-than-expected sales of refined oil products and the continued weakness in the fundamentals of olefins, the company's performance still did not meet the bank's expectations. The bank believes that with the advancement of the "anti-inner loop" initiative, the medium- to long-term fundamentals of the refining and chemical industry may improve.