On the evening of January 19, Bohai Chemistry (SH600800, stock price 4.50 yuan, market cap 4.995 billion yuan) disclosed its 2025 annual performance pre-loss announcement, estimating a full-year net loss attributable to shareholders of 632 million to 665 million yuan. This marks the company's fourth consecutive year of losses, with cumulative losses over the four years exceeding 1.8 billion yuan. The persistent downturn in its main PDH (propane dehydrogenation to propylene) business has placed this chemical enterprise at a crossroads of transformation and survival.

Performance Under Continuous Pressure: Cumulative Pre-Loss Exceeds 1.8 Billion Yuan Over Four Years

The announcement reveals that, based on preliminary calculations by the finance department, Bohai Chemistry's 2025 adjusted net loss attributable to shareholders is even larger, estimated at 759 million to 799 million yuan. Looking back at performance, the company's loss trend had already emerged, with cumulative losses from 2022 to 2024 exceeding 1.1 billion yuan. In 2024, net profit attributable to shareholders and adjusted net profit were losses of 632 million yuan and 692 million yuan, respectively. The 2025 performance showed no improvement, with continued losses further impacting investor confidence.

Regarding the main reasons for the pre-loss, the company directly pointed to the impact of the chemical industry cycle and the structural difficulties in the PDH industry. In 2025, the PDH industry was deeply mired in dual pressures of overcapacity and weak demand, compounded by an increase in propane import tariff rates, leading to high raw material procurement costs. Meanwhile, the price of core product propylene continued to decline, creating a profit inversion pattern of "rising costs and falling selling prices." Data shows that the average tax-exclusive selling price of propylene in 2025 was 5,791.71 yuan/ton, a year-on-year decrease of 5.92% from 6,155.83 yuan/ton in 2024, with propylene gross margin remaining negative.

Additionally, the shortcomings in the company's industrial chain layout exacerbated operational pressures. Due to a short industrial chain and a single product structure, Bohai Chemistry could not form complementary advantages with upstream and downstream sectors, making it difficult to withstand industry cycle fluctuations. Under the dual impact of insufficient demand and overcapacity, it continued to "bleed."

Restructuring Terminated + Plant Maintenance Delayed: Core Assets Become a "Burden"

To divest loss-making assets and seek transformation, Bohai Chemistry had planned a major asset restructuring at the end of 2025 to "replace the old with the new." On December 5, 2025, the company signed a "Restructuring Letter of Intent" with its controlling shareholder, intending to sell 100% of its wholly-owned subsidiary Tianjin Bohai Petrochemical and acquire control of Anhui Taida New Materials through issuing shares and paying cash, thereby entering the fine chemicals and new materials sectors.

It is worth noting that Bohai Petrochemical owns a 600,000-ton annual PDH plant, which was once the core entity for the company's propylene production. However, its profitability continued to deteriorate with the worsening overcapacity in the PDH industry, gradually becoming a performance "burden." However, this self-rescue plan lasted only 15 days before being terminated. On December 20, 2025, the company announced that due to failure to reach agreement on core terms, it decided to terminate the asset sale and purchase matters. The stock resumed trading on December 22, with a commitment not to plan any major asset restructuring within one month.

Adding to the woes, the maintenance of Bohai Petrochemical's PDH plant was delayed. The plant was originally scheduled for 30 days of maintenance but, due to the need for joint debugging and testing with a new project, the expected production resumption was postponed to the end of February 2026. This resulted in a four-month "void period" for the company's main business, further exacerbating performance pressures.

Transformation Window Narrowing: Urgent Need to Break Dependence on Single Product

With the announcement of the 2025 annual report pre-loss, Bohai Chemistry's operational difficulties have become more pronounced. How to break away from its single dependence on the PDH business, address the shortcomings in its product structure, and find new profit growth points have become core questions that the company's management must face in 2026. Against the backdrop of unabated downward pressure from the industry cycle and受阻 restructuring and transformation, the adjustment time window left for the company is continuously narrowing.

From:ChemNet