SHANGHAI PECHEM (00338) issued a profit warning, expecting a net loss attributable to shareholders of approximately 1.289 billion to 1.576 billion in 2025, turning from profit to a loss year on year.

SHANGHAI PECHEM (00338) announced that the group is expected to incur a net loss attributable to the parent company shareholders of approximately RMB 12.89 billion to RMB 15.76 billion for the year ending December 31, 2025, compared to a loss in the same period in 2024; it is also expected that the net loss attributable to the parent company shareholders, excluding non-recurring gains and losses, will be approximately RMB 12.80 billion to RMB 15.64 billion, also showing a loss compared to 2024. The main reasons for the group's expected loss in 2025 are as follows: overall downward fluctuations in international crude oil prices, no significant improvement in product market demand, reduction in gross profit margins of the group's main chemical products, combined with the impact of major repairs to the group's production facilities in the fourth quarter, resulting in a decrease in total commodity volume, all of which collectively lead to operating losses for this group.