Jiutian Chemical Group Limited FY2025 Financial Analysis

Jiutian Chemical Group Limited, listed on the Singapore Exchange Catalist Board, has released its unaudited condensed financial statements for the six months and full year ended 31 December 2025. The Group’s principal activities are investment holding and chemical manufacturing, including methylamine, DMF, and trading of chemical products. This article provides a structured analysis of the key financial metrics, performance trends, exceptional items, and outlook based strictly on the disclosed financial report.

Key Financial Metrics & Comparative Table

Historical Performance Trends

• Revenue more than doubled YoY, driven by trial production at the new 100,000-ton methylamine plant and expanded trading activities.
• Despite higher revenue, net losses widened both YoY and QoQ due to sustained weak selling prices, which remained below production costs.
• Gross loss margin improved, reflecting operational efficiencies after the prior production pause, but overall losses increased due to market headwinds.
• Net asset value per share declined 27% YoY, indicating further erosion of shareholder equity.
• No dividend was declared for FY2025, similar to FY2024.

Exceptional Earnings and Expenses

• Impairment loss on property, plant and equipment rose sharply to RMB 11.38 million versus RMB 4.28 million last year, due to continued losses and limited facility utilisation.
• Impairment loss on financial assets was RMB 4.27 million, mainly for trade receivables deemed potentially uncollectible; partially offset by recovery of RMB 2 million from a former subsidiary.
• Finance costs increased due to expensing of previously capitalised borrowing costs after substantial completion of the new plant.

Related-Party Transactions & Unusual Fund Flows

• Significant related-party transactions with Anyang Chemical Industry Group, Anyang Jiulong Chemical Co., Ltd, and Henan Energy and Chemical Industry Group Chemical Sales Co., Ltd. These include purchases of raw materials, rental expenses/income, and sales of repair materials, with aggregate values exceeding RMB 28.69 million.
• No treasury shares, convertible instruments, or subsidiary holdings outstanding.
• No share buybacks or dilution occurred during the period.
• Placement proceeds usage tracked, with S\$2.08 million unutilised as at announcement date.

Chairman’s Statement & Tone

Chairman’s Statement:

“BY ORDER OF THE BOARD
XU AIJUN
Non-executive and Non-independent Chairman
25 February 2026
The Board does not recommend any final dividend for FY2025 as the Group wishes to reserve adequate resources for the Group’s ongoing projects and to allow the Group to respond to any adverse changes in the macroeconomic environment.”

The tone is cautious and defensive, emphasizing liquidity preservation amid adverse macroeconomic conditions.

Macroeconomic & Industry Outlook

• China’s chemical industry remains challenging with weaker domestic demand, global trade uncertainties, and renewed US tariffs on Chinese goods.
• Oversupply and sustained downward pricing pressure for DMF and methylamine continue to affect results.
• The Group is implementing cost optimization, production adjustments, and efficiency improvements to mitigate losses and preserve financial stability.
• Industry conditions are expected to remain tough in the next 12 months due to macro uncertainties, geopolitical risks, fluctuating input costs and evolving regulatory requirements.

Conclusion & Investment Recommendations

Overall Financial Performance and Outlook:
The Group’s performance is weak. While revenue surged due to resumption and expansion of production, losses widened, net asset value declined, and no dividend was declared. The operating environment remains challenging, and the management is focused on cost controls and liquidity preservation rather than growth or shareholder returns.

Investor Recommendations

• If you currently hold this stock: Consider reviewing your investment thesis and risk tolerance. The company is facing persistent losses, a declining net asset base, and no dividend payouts. Unless you are positioned for a turnaround or speculative recovery, it may be prudent to reduce exposure or hold only if you believe in the long-term recovery potential and are comfortable with downside risks.
• If you do not currently hold this stock: It may be wise to remain on the sidelines until clear signs of profitability, improvement in macro conditions, or strategic corporate actions emerge. The stock currently offers little immediate upside, with significant operational and market risks.

Disclaimer: This article is based strictly on the company’s official financial report and does not constitute investment advice. Investors should conduct their own due diligence and consider their personal risk profiles before making any investment decisions.

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