Jiutian Chemical Group Limited – Q1 2026 Financial Performance: Key Highlights and Investor Insights

Strong Revenue Growth Driven by New Plant Test Run

Jiutian Chemical Group Limited (“Jiutian” or “the Company”), together with its subsidiaries, has reported a substantial increase in revenue for the first quarter ended 31 March 2026. The Group recorded revenue of RMB 45.17 million, representing an impressive 501% growth compared to RMB 7.52 million in Q1 2025. This surge was mainly attributed to the test run and sale of products from the Group’s newly constructed 100,000-ton methylamine (MA) plant. The plant commenced trial production and product sales during the periods ending 30 June 2025 and 31 December 2025 respectively.

Strategic Pause in Plant Operations Amid Market Uncertainty

Despite the revenue growth, the Company took a prudent risk management step by discontinuing the test run of the MA plant in February 2026. This decision reflects Jiutian’s cautious approach in response to ongoing market uncertainties and volatile demand conditions. The Company continues to closely monitor the industry and market situation before making further operational decisions.

Challenging Industry Conditions Impact Profitability

The Group’s profitability was significantly affected by challenging industry fundamentals. Jiutian reported a gross loss of RMB 22.44 million in Q1 2026—more than double the gross loss of RMB 10.62 million in Q1 2025. The losses were primarily driven by:

• Weak demand for dimethylformamide (“DMF”) and methylamine
• Persistent market oversupply
• Continued pricing pressure in the chemical sector

As a result, the loss attributable to shareholders widened to RMB 30.39 million, up from RMB 21.37 million in the prior year.

Balance Sheet and Financial Position

The Group’s balance sheet reflects the continued operational challenges:

• Current assets: RMB 310.63 million (down from RMB 333.80 million as at 31 Dec 2024)
• Non-current assets: RMB 288.31 million (down from RMB 292.81 million)
• Current liabilities: RMB 201.21 million (up from RMB 198.56 million)
• Non-current liabilities: RMB 49.71 million (essentially unchanged)
• Net assets: RMB 348.02 million (down from RMB 378.31 million)
• Total equity: RMB 348.02 million (down from RMB 378.31 million)
• Accumulated losses: RMB 472.66 million (increased from RMB 442.37 million)

Operational Focus and Forward-Looking Statements

Jiutian Chemical Group continues to operate in a challenging market environment characterized by weak downstream demand and global uncertainties. In response, management remains focused on:

• Strict cost discipline
• Operational efficiency improvements
• Financial prudence to preserve shareholder value

The Company has committed to keeping shareholders informed of any material developments or updates as appropriate.

Key Points for Investors and Shareholders

• Revenue jump is driven by a test run of a new plant, not sustainable core operations.
• Test run discontinued in February 2026 due to market uncertainties. This could have implications for future revenue and profitability.
• Gross loss and net loss have widened significantly. Industry weakness and oversupply remain material risks.
• Accumulated losses and declining net assets highlight ongoing financial challenges.
• Any resumption or new strategy for the MA plant could be a price-sensitive event. Investors should monitor further announcements closely.

Conclusion

Jiutian Chemical Group’s Q1 2026 update reveals a revenue boost from strategic expansion, but also underscores significant challenges in profitability and market conditions. The discontinuation of the MA plant test run and widening losses suggest ongoing risks for shareholders and potential volatility in share value. Any further material updates on plant operations or industry recovery could be price-sensitive and warrant close investor attention.

Disclaimer: This article is based on unaudited financial statements and official disclosures from Jiutian Chemical Group Limited. It is not investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions.

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