GHW INTL (09933) expects net profit to increase year-on-year to 25 million yuan to 35 million yuan in the medium term

According to Zhitong Finance App News, GHW INTL (09933) issued an announcement. According to the Board's preliminary review of the Group's latest unaudited comprehensive management accounts for the six months ended June 30, 2026 (current period) and other information currently available to the board of directors, the Group expects to obtain a net profit of between RMB 25 million and RMB 35 million during the period ending June 30, 2025, and approximately RMB 7.9 million in net profit for the six months ended June 30, 2025.

The increase in net profit was mainly due to the strong performance of the Group's methylamine industry series products (i.e. choline chloride and beet acid) and Jinhaiwei's new material products (i.e. polymethylenephenyl polyisocyanate). The increase was mainly due to an increase in the average selling price of such products and the Group's successful implementation of a trade product procurement strategy. The increase in net profit was partially offset by the following factors: (i) other losses, due to a decrease in net exchange earnings due to the depreciation of various foreign currencies such as the US dollar against the RMB during the period; (ii) increased sales of certain products driven an increase in logistics costs (including transportation, port fees and freight), which led to an increase in sales expenses and (iii) an increase in income tax expenses, in line with the increase in profit generated during the period.