Titan Scientific, a leading integrated scientific research service provider, plummeted 80%—its performance sharply declined. Is there still hope for recovery?

That said, given the broader market environment—where its peers are all struggling—it could be argued that Titan has demonstrated some degree of alpha. When compared side-by-side with its peers, it appears relatively better. The companies discussed earlier were multinational corporations, which can still seek orders from Europe and the U.S. In contrast, domestic Chinese firms—including Jieneng Technology, Jet Biofil, Auphyl, Dongfu Long, Haier Biomedical, Youningwei, and NanoMicro Technologies—well… they’re all too painful to look at. • Jieneng Technology: Q3 revenue down 31.4% YoY; first three quarters down 23.89% YoY. • Jet Biofil: Q3 revenue up 1.84% YoY; first three quarters down 31.37% YoY. • Dongfu Long: Q3 revenue down 1.13% YoY; first three quarters up 13.31% YoY. • Youningwei (a platform-type enterprise most comparable to Titan): Q3 revenue down 13.28% YoY; first three quarters up 2.83% YoY. … PS: Companies such as BPS Bioscience, Yishuo神州 (Yishuo神州), and Novoprotein benefited significantly from COVID-related businesses in 2023 (e.g., expanded distribution channels enabling sales of non-COVID products), so they fall outside the scope of this discussion. As for net profit—there’s no need to dwell on it yet, because Titan’s current profits are illusory. Whether they grow or shrink further, those figures hold little meaningful value. Why? Because Titan operates a platform business—a model akin to JD.com’s. A platform business means that, especially during its early, smaller-scale phase, the company holds little bargaining power. On one hand, it must persuade upstream suppliers to list their products on its platform; on the other, it must convince downstream customers to purchase through that platform. Thus, Titan must play the role of a ‘subordinate’ for a while—for instance, offering downstream clients extended payment terms, providing exceptionally attentive service, settling payments faster—or even paying cash upfront—to upstream suppliers, and pre-purchasing large inventories from them... This dynamic implies that, before Titan’s platform reaches a certain scale, its reported profits may translate in reality into piles of accounts receivable and inventory—not real cash—and may even result in a paradoxical situation where higher revenue coincides with deeper losses for a period. As shown in the chart below, Titan’s net operating cash flow deficit widened annually from 2018 to 2021, only beginning to improve in 2022. In the first three quarters of 2023, Titan’s operating cash flow continued the positive trend observed since H2 2022, nearing levels seen in 2020. If Q4 2023 achieves cash flow comparable to Q4 2022 (typically Titan’s strongest quarter for collections), then 2023 could become the least negative year in the past four. Per the company’s prior target, achieving positive operating cash flow in 2024 remains plausible. Only when cash flow turns positive can we say the company is truly earning money. The Chief Analyst has long held that—unlike net profit—cash flow alone authentically reflects an enterprise’s real profitability. Why? The Chief Analyst uses his own fitness studio as an example: Studio revenue primarily comes from membership card sales. After members purchase cards, they gradually consume the prepaid value over time. Staff salaries are paid monthly based on actual cash received that month; the owner assesses whether there’s enough money to cover expenses—and how much is available—by comparing actual cash inflows against actual outflows (salaries, rent, utilities, etc.) for that month—not by waiting until every member fully exhausts their card balance before recognizing that amount as ‘profit.’ So, for genuine brick-and-mortar businesses, cash flow *is* real profit.

Heavy losses! BASF, Dow, LyondellBasell, Eastman… 29 chemical enterprises have released their 2023 financial reports.

Recently, major global chemical enterprises have successively released their Q4 and full-year 2023 financial results. Most reported disappointing performance, with sharp declines in both sales revenue and profits—though a few achieved notable growth in net profit. — 1 — European Chemical Enterprises ▶▶ BASF Group Q4 sales: €15.871 billion (approx. $1.7 billion), down 17.9% YoY from €19.323 billion. EBITDA before special items: €1.317 billion, down 6% YoY. Net loss for the quarter: €1.587 billion, versus a net loss of €4.847 billion in the prior-year quarter. Full-year 2023 sales: €68.902 billion (approx. $73.9 billion), down 21.1% from €87.327 billion in 2022. EBITDA before special items: €7.671 billion, down 28.7% YoY. Full-year net profit: €225 million, versus a net loss of €627 million in 2022. ▶▶ LyondellBasell Q4 sales: $9.929 billion, versus $10.206 billion in the prior-year quarter. Q4 net profit: $185 million, versus $747 million in the prior-year quarter. Full-year 2023 sales: $41.107 billion, versus $50.451 billion in 2022. Full-year net profit: $2.121 billion, versus $3.889 billion in 2022. ▶▶ Evonik Q4 sales: €3.604 billion (approx. $3.864 billion), versus €4.34 billion in the prior-year quarter. Q4 EBIT: €30 million, versus a loss of €260 million in the prior-year quarter. Q4 net loss attributable to shareholders: €146 million, versus a net loss of €284 million in the prior-year quarter. Full-year 2023 sales: €15.267 billion (approx. $16.4 billion), versus €18.488 billion in 2022. Full-year EBIT: loss of €243 million, versus profit of €942 million in 2022. Full-year net profit attributable to shareholders: loss of €465 million, versus profit of €540 million in 2022. ▶▶ INEOS Group Holdings Full-year 2023 revenue: €14.885 billion (approx. $16 billion), versus €20.927 billion in 2022. Full-year operating profit: €707 million, versus €2.001 billion in 2022. Full-year net profit: €309 million, versus €2 billion in 2022. ▶▶ Covestro Full-year 2023 sales: €14.377 billion (approx. $15.4 billion), down 20% from €17.968 billion in 2022. EBITDA: €1.08 billion, down 33.2% from €1.617 billion in 2022. Full-year net loss: €198 million, versus a net loss of €272 million in 2022. ▶▶ DSM-Firmenich Q4 sales: €3.112 billion (approx. $3.337 billion), down 6% YoY from €3.295 billion. Adjusted EBITDA: €439 million, down 12% YoY.

Malaysia’s LOTTE Chemical Titan Q3 net loss widens on LINE costs, thinner margins

15 hours ago

Malaysia-based LOTTE Chemical Titan reported a widened Q3 net loss of M$430 million driven by LINE project expenses and margin compression. Plant utilization fell to 48% amid weak downstream demand and macroeconomic uncertainties.

icis

2026-05-08

Lotte Chemical Titan’s net losses widen despite revenue surge

2026-08-07

Malaysia’s LOTTE Chemical Titan Q2 Net Loss Widens on Inventory Write-downs

2026-11-06

Malaysia’s LOTTE Chemical Titan Q3 net loss widens on LINE costs, thinner margins

Malaysia’s LOTTE Chemical Titan Q3 net loss widens on LINE costs, thinner margins

FAQ