Zhongzhi Weiye Information | Q3 Financial Results of the World’s Top 50 Chemical Companies Released!

Recently, major chemical enterprises—including BASF, Dow, SABIC, Hengli, and Wanhua—have successively released their Q3 2023 financial reports. Data show that, amid persistently weak global demand, large chemical companies are facing severe operational challenges. Asia Rongsheng Petrochemical reported Q3 revenue of RMB 84.522 billion, up 9.07% year-on-year; net profit attributable to shareholders was RMB 1.234 billion, surging 1,367% year-on-year. For the first three quarters, revenue totaled RMB 239.047 billion (up 6.19% YoY), while net profit attributable to shareholders amounted to RMB 108 million—a 98.03% decline YoY. Hengli Petrochemical posted Q3 revenue of RMB 63.683 billion, up 24.38% YoY; net profit attributable to shareholders was RMB 2.652 billion, compared to a net loss of RMB 1.939 billion in the same period last year. Revenue for the first three quarters reached RMB 173.112 billion (up 1.62% YoY); net profit attributable to shareholders stood at RMB 5.701 billion—a 6.34% decline YoY. Wanhua Chemical recorded Q3 revenue of RMB 44.928 billion, up 8.78% YoY; net profit was RMB 4.135 billion, up 28.21% YoY. For the first three quarters, revenue totaled RMB 132.554 billion (up 1.64% YoY), while net profit attributable to shareholders was RMB 12.703 billion—a 6.65% decline YoY. China National Chemical Corporation (CNCEC) reported Q3 revenue of RMB 40.106 billion, down 11.38% YoY; net profit attributable to shareholders was RMB 777 million—a 27.49% decline YoY. Hengyi Petrochemical posted Q3 revenue of RMB 37.213 billion, down 14.48% YoY; net profit attributable to shareholders was RMB 130 million, up 126.25% YoY. Revenue for the first three quarters totaled approximately RMB 101.529 billion (down 17.67% YoY); net profit attributable to shareholders was approximately RMB 206 million—a 84.34% decline YoY. Dongfang Shenghong reported Q3 revenue of RMB 37.743 billion, up 129.22% YoY; net profit attributable to parent company was RMB 798 million, soaring 1,457.58% YoY. Revenue for the first three quarters totaled approximately RMB 103.642 billion (up 121.89% YoY); net profit attributable to shareholders was approximately RMB 2.479 billion—a 57.15% increase YoY. Tongkun Group reported Q3 revenue of RMB 24.845 billion, up 43.30% YoY; net profit attributable to shareholders was RMB 798 million—turning from loss to profit. Revenue for the first three quarters totaled approximately RMB 61.742 billion (up 30.84% YoY); net profit attributable to shareholders was approximately RMB 904 million—a 53.23% decline YoY. Yuntianhua reported Q3 revenue of RMB 18.084 billion, down 8.83% YoY; net profit was RMB 1.027 billion, down 27.80% YoY. Revenue for the first three quarters totaled RMB 53.303 billion (down 5.59% YoY); net profit attributable to shareholders was RMB 3.704 billion—a 27.80% decline YoY. Xinfengming reported Q3 revenue of RMB 16.017 billion, up 12.57% YoY; net profit attributable to shareholders was RMB 407 million—turning from loss to profit.

ICIS Global Top 100 Chemical Companies: Who Is Truly Strong—and Who Only Appears Strong? What Will Define Future Competition in the Chemical Industry?

After all, there are few remaining growth opportunities in the chemical industry, and the traditional ‘scale wins’ model is no longer effective. Friends of Wanhua, feel free to discuss where Wanhua Chemical’s next breakthrough lies. III. The Largest Company Is Not Necessarily the Most Profitable Another notable trend in this year’s ranking data is the stark contrast between scale and profitability. Among the global top 10, eight companies disclosed both operating profit and EBIT. Their combined sales totaled approximately USD 366.2 billion, while their aggregate EBIT amounted to only about USD 2.66 billion—yielding a weighted EBIT margin of just ~0.7%. In contrast, among the 83 companies ranked 11th–100th that disclosed EBIT, the weighted EBIT margin stood at ~4.2%. Wanhua and Rongsheng did not disclose EBIT, so the 0.7% figure does not represent the full top-10 average. Moreover, business scopes and financial reporting standards vary across companies. Although the data may not be perfectly precise, the disparity is real and striking: the world’s largest chemical enterprises are not necessarily those with the strongest profit conversion capability. BASF serves as the most typical example: its 2025 sales stood at USD 70.004 billion—the highest globally—but its operating profit was USD 1.917 billion. Shin-Etsu Chemical’s sales were USD 16.413 billion—less than one-quarter of BASF’s—yet its operating profit reached USD 4.05 billion, more than double BASF’s. BASF is bigger; Shin-Etsu is more profitable. These two companies operate in fundamentally different businesses, with differing asset intensities, cyclical exposures, customer relationships, and pricing power. Sales volume merely indicates size—not strength. IV. The Global Chemical Industry Is Not Deteriorating Uniformly—It Is Rapidly Diverging Of the 100 ranked companies, 91 disclosed EBIT. Among them, 53 posted operating profit margins below 5%, 26 incurred operating losses, and 20 maintained double-digit EBIT margins. The global chemical industry is experiencing severe polarization amid general sluggishness. Covestro reported an operating loss of USD 407 million; Westlake Chemical, USD 1.426 billion; Celanese, USD 786 million; Versalis, USD 1.672 billion; and FMC, USD 1.647 billion. Meanwhile, Shin-Etsu, NewMarket, and Givaudan continue to demonstrate strong profit-conversion capabilities. If all companies declined simultaneously, it might simply reflect a cyclical downturn. But within the same cycle, some firms suffer massive losses while others sustain operating margins above 20%. This underscores the growing importance of product mix, cost positioning, customer switching costs, technological barriers, and capital intensity. Cycles have not disappeared—but they have magnified previously hidden differences among business models. V. What Matters Is Not Simply Pursuing ‘High-End’ Products—But the Quality of the Product Portfolio Commodity chemicals face long-term margin pressure, whereas specialty chemicals clearly exhibit stronger profitability—leading many to define strategic direction as ‘moving upmarket.’ Yet oversimplifying this as ‘commodities = bad, specialties = good’ is not an accurate commercial judgment. A commodity chemical enterprise with low-cost feedstocks, highly efficient facilities, and a globally leading cost curve can generate excellent returns on capital. Conversely, a so-called specialty chemical company—whose products lack meaningful barriers to entry, whose customers face negligible switching costs, and which faces intense competitive entry—may struggle to earn profits at all.

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