[Liwen System] Liwen Culture Industry earned 15.8% more last year, with a final dividend of 14 cents

Li Cultural & Chemical Industry (00746)
Announcement: Last year’s revenue was HKD 3.755 billion, down 4.9% year-on-year, but benefited from a decline in some raw material prices and a significant drop in energy costs. Profit was HKD 558 million, up 15.8% year-on-year; proposed final dividend is HKD 0.14 per share, down 7.1% year-on-year; total dividends for the year are HKD 0.335, up 15.5%.

Li Cultural & Chemical Industry’s chemical business revenue last year was approximately HKD 3.752 billion, a decrease of 4.4% year-on-year. The company stated that last year, domestic consumption growth remained weak, exports were affected by tariffs, and overcapacity in some industries, leading to continued pressure on the prices of chemical products (especially methyl chloride), due to both supply-side pressures and insufficient demand support, resulting in a significant decline.

Chemical Product Price Pressure Continues to Increase

In terms of average selling prices per ton last year, methyl chloride (dichloromethane and trichloromethane) were HKD 2,370 and HKD 2,140 respectively, down about 17% and 19% year-on-year; caustic soda was about HKD 990, up about 5%; polytetrafluoroethylene was about HKD 43,600, down about 3%; hydrogen peroxide was about HKD 710, down about 17%. The actual production volumes of main products (including self-use) were approximately 400,000 tons of methyl chloride, about 610,000 tons of caustic soda, about 8,000 tons of PTFE, and about 390,000 tons of hydrogen peroxide.

Li Cultural & Chemical Industry stated that it will accelerate the automation and intelligent upgrading of factories, continuously optimize the cost structure, and improve production efficiency to strengthen market competitiveness.

New Factory in Vietnam to Complete Trial Production by End of 2027

The company revealed plans to build its first overseas production facility in Ho Chi Minh City, Vietnam, mainly producing chloride-related products. The new factory in Vietnam is expected to be completed and start trial production by the end of 2027. Meanwhile, the ethylene carbonate (VC) production line at the Jiangsu Changshu plant has already been put into operation, bringing profit growth to the group; a high-end fluoropolymer production line in Jiangxi’s new land parcel is also under construction. These two major projects will jointly support the group’s future sales growth.

Source: Announcement