Net profit nearly doubles! Fluorine chemical leader Juhua Group surges strongly

Benefiting from the continuous optimization of the supply and demand landscape under the refrigerant quota system, the fluorine chemical leader Juhua Co., Ltd. (600160.SH) saw a significant increase in its 2025 performance, maintaining a high-growth trend in the first quarter of 2026. On May 19, the company held a briefing for its 2025 annual and Q1 2026 results, where investors intensively asked questions focusing on the profitability of the non-refrigerant sector, the progress of the 10-billion-yuan project in Gansu, geopolitical risks in the UAE, and the realization pace of the liquid cooling business.

Core Performance: Volume and Price Rise Together, Driving High Profit Growth

In 2025, the company achieved revenue of 26.991 billion yuan, a year-on-year increase of 10.33%; net profit attributable to shareholders was 3.783 billion yuan, a surge of 94.29%; and net profit after deducting non-recurring items was 3.754 billion yuan, up 97.23% year-on-year, reaching a record high in profitability scale.

In Q1 2026, the company continued its strong performance, with revenue of 6.018 billion yuan, up 3.75% year-on-year; net profit attributable toAttributable to shareholders was 1.173 billion yuan, a year-on-year increase of 45.93%, with net profit growth significantly outpacing revenue growth.

Refrigerant Main Business: Quota Barriers Strengthened, Volume and Price Rise in Peak Season

As a domestic fluorine chemical leader, the refrigerant business is the company's core source of profit. Han Jinming, the company's general manager, emphasized at the meeting that the refrigerant business operates under a "franchise" model and holds the largest refrigerant quota in the country, accounting for nearly 40%. Under quota management, the industry's supply and demand landscape continues to improve, and product prices are seeing a restorative increase. In Q1 2026, the company's average selling price for refrigerants increased by approximately 18.72% year-on-year, solidifying the logic of simultaneous volume and price growth.

Entering Q2, fluorine refrigerants ushered in the traditional peak season with prices continuing to rise. Price increases for R32, R134a, R125, and blended products were the main drivers, and the refrigerant business is expected to sustain high prosperity. In 2025, the gross margin of the company's refrigerant business reached as high as 50.81%, becoming the core support for performance.

Non-Refrigerant Sector: Q1 Price Recovery, Profit Repair to Be Observed

Compared to the strength of the refrigerant business, the company's non-refrigerant sector saw a full-line decline in profitability in 2025, dragging down overall performance. In Q1 2026, prices in the non-refrigerant sector showed restorative growth; with the exception of basic chemical products, the average prices of other products increased year-on-year. Entering Q2, major products continued their improvement trend, with prices showing sequential gains.

Han Jinming admitted that the Q1 recovery in the non-refrigerant sector was mainly driven by rising raw material prices, and the subsequent impact remains to be seen. The company will leverage its advantages in production capacity scale, product variety, and integrated industrial chain to flexibly adjust procurement and production strategies to hedge against cost fluctuation risks.

Key Projects: Gansu Project Timeline Clarified, Liquid Cooling Business Steadily Materializing

1. Multi-Billion Yuan Project in Gansu

As the core engine for the company's future growth, the progress of the Juhua Gansu construction project attracts much attention. Han Jinming clarified that the project is planned to achieve mechanical completion on June 30, 2026, after which work such as individual testing, joint testing, and chemical feedstock trial runs will be advanced. Due to the large number of units and complex processes, the commissioning and capacity ramp-up cycle is expected to be lengthy.

2. Liquid Cooling Business

In the field of fluorine-containing new materials, the company's Juxin Cooling Liquid project has a planned capacity of 5,000 tons/year, of which the 1,000 tons/year unit has been completed and is in the capacity ramp-up phase, operating well. Currently, cooperation has been established with multiple domestic data centers. Since 2026, quarterly sales volume has achieved year-on-year and sequential growth, and the commercial implementation of the liquid cooling business is steadily advancing.

Risks and Challenges: Geopolitical Conflicts and Cost Pressure Coexist

1. Geopolitical Risks in the UAE

Affected by intensified geopolitical conflicts in the Middle East and obstructed transportation, the company's UAE plant is currently maintaining low-load operations and is in a maintenance state. While short-term exports are under pressure, rigid demand remains in overseas markets.

2. Raw Material Cost Fluctuations

Recent price increases in anhydrous hydrofluoric acid have exerted certain pressure on the company's procurement costs and product gross margins. However, relying on its complete integrated industrial chain advantage, the company can effectively pass on cost pressures, keeping the overall impact controllable.

Dividend Return: Dividend Payout Ratio Significantly Increased

In 2025, the company's total cash dividend for the year was 1.512 billion yuan, with a dividend payout ratio of 39.96%, a significant increase from 31.69% in 2024, continuing to reward shareholders.