North Huajin Chemical Industries Co., Ltd. (Huajin Chemical) (000059)

Equity Research Report | Industry: Petroleum & Petrochemicals – Refining & Trading | Report Date: September 13, 2026 | The research notes do not provide a clear price data cutoff date; only date clues such as "September 9," "September 10," "September 11," and "this week (9.7–9.11)" appear, and a unified cutoff point cannot be confirmed; the following price and fund flow data are faithfully cited from the sources appearing in the notes, and the specific timing is uncertain.

This report is automatically compiled and generated by AI based on public information, for reference only, and does not constitute investment advice.

1. Core Summary

Huajin Chemical is in the bottom-repair phase of the refining cycle. In H1 2026, it achieved operating revenue of RMB 17.511 billion, down 12.90% year-on-year, net profit attributable to parent of RMB 365 million, and non-GAAP net profit attributable to parent of approximately RMB 341 million, turning around from a loss in the same period of 2025; gross margin rose from approximately 10.92% in the same period last year to 19.33%, and the asset-liability ratio fell to 56.75%. The earnings improvement mainly came from the recovery in refining spreads and the gross margin of the petrochemical segment, rather than revenue expansion. Q2 single-quarter net profit attributable to parent was RMB 321 million, accounting for the majority of H1 profit.

The company is the petrochemical platform under China North Industries Group Corporation (Norinco Group), mainly engaged in petrochemicals, chemical fertilizers, road asphalt, and lubricant base oil, with a three-location layout in Panjin, Huludao, and Kuqa (Xinjiang) and refining-chemical integration synergies. On the cost side, the company is highly dependent on the Group's crude oil procurement; in 2025, the top five suppliers accounted for 98.55% of procurement, of which Norinco Group accounted for 87.23%. On the sales side, customers are relatively dispersed; in 2025, the top five customers accounted for 21.88%, but product homogenization is high and there is no obvious downstream pricing power.

The company's scale is significantly smaller than private large refining leaders such as Rongsheng Petrochemical and Hengli Petrochemical. Differentiation mainly comes from its central SOE platform, the Group's crude oil procurement channels, lubricant base oil, and specialty products such as ABS and trimellitic anhydride. It lost RMB 2.795 billion and RMB 1.763 billion in 2024 and 2025 respectively; the turnaround in H1 2026 shows improved operations, but profitability is still in the early stage of repair. As of September 11, 2026, the quoted share price was RMB 5.58, with total market capitalization of approximately RMB 8.925 billion, a dynamic P/E of approximately 12x, and a P/B of approximately 0.88; static and trailing P/Es remain meaningless due to losses.

There has been significant recent governance disruption: in May 2026, the chairman and a director resigned, and the vice chairman acted as chairman; in July, Deputy General Manager Yan Zenghui was placed under investigation and subject to residential detention; in August, a special verification announcement on relevant matters was disclosed, but the reason, scope, and conclusion of the verification remain unclear. Technical data is incomplete; the stock fell 2.96% in the recent week, while weekly main-force funds still saw a net inflow of RMB 66.0195 million, but there were consecutive net outflows on September 10 and 11, showing clear short-term divergence in the fund flow picture.

2. Company Overview

2.1 Basic Information

2.2 Main Business and Product Layout

• Petrochemical segment (crude oil processing and petroleum products, polyolefin resins, ABS resins, aromatics (mixed aromatics, C9), butadiene, ethylene oxide, ethylene glycol, fuel oil, asphalt, lubricants, etc.)
• Chemical fertilizer segment (urea and other fertilizer products)
• Road asphalt segment (road asphalt, lubricant base oil-related products)

2.3 Industry Chain Upstream/Downstream Position and Cost-Profit Structure

The company is in the midstream, asset-heavy refining and processing link of the petrochemical industry chain. Its core input is crude oil, and its outputs are refined oil products and various chemicals. It earns refining spreads and refining-chemical integration synergy returns, making it a typical "asset-heavy, thin-margin, strongly cyclical" link. The following expands in order on upstream costs, downstream customers, working capital occupation, gross margin trends, and smile-curve positioning.

• The core input is crude oil: the company disclosed in its annual report that crude oil adopts a "Group-level centralized procurement" model, and in 2020 crude oil procurement accounted for as much as 91.37% of total procurement (source: 2020 annual report, Hithink RoyalFlush announcement database). The company's actual controller, Norinco Group, has a chain of "overseas oil exploration and extraction—oil trading—petrochemicals—fine chemicals—specialty chemicals," and the company is positioned as Norinco Group's petrochemical platform, with a stable advantage in overseas crude oil resources.
• It is basically a price-taker for crude oil as a commodity; however, in procurement channels/procurement organization, it relies on the Group's centralized procurement to obtain a relative advantage.
• Procurement concentration (2025 annual report): the top five suppliers purchased RMB 34.195 billion in total, accounting for 98.55% of annual procurement; the largest supplier was China North Industries Group Corporation, with procurement of RMB 30.268 billion, accounting for 87.23% (related-party procurement accounted for 87.23%). This data comes from the Sina Finance full announcement page and has relatively high credibility.
• Historical comparison: in 2022, the top five suppliers accounted for RMB 38.165 billion, or 93.50% (source: zzcx.cs.com.cn 2022 annual report flash).
• Risk note: the 2024 customer/supplier table comes from a third-party blog's reproduction of the annual report, and some numbers are garbled in format (for example, "the top 1 supplier purchased a total of RMB 22,190,551.68" clearly does not match "accounting for 70.1%"), so the original announcement should prevail.
• Products serve multiple downstream areas including refined oil, polyolefins, aromatics, and fertilizers. Customers include large petrochemical trading/end-user enterprises such as Sinochem Group, Sinopec, and China Aviation Oil. In terms of bargaining structure, it is closer to commodity market-based pricing, and overall customer concentration on the sales side is not high.
• Top five customer concentration (historical series): in 2021, the top five customers totaled RMB 8.835 billion, or 22.92% (source: cs.com.cn 2021 annual report flash); in 2022, the top five customers totaled RMB 6.800 billion, or 13.86% (source: zzcx.cs.com.cn 2022 annual report flash); in 2024, the top five customers totaled RMB 6.475 billion, or 18.1%, of which related-party sales accounted for 2.0%, and the customers were China Aviation Oil (5.1%), Sinopec (3.1%), Panjin Tiantianhaode Supply Chain (3.1%), Xinghe Petroleum (Liaoning) (2.1%), and Norinco Group (2.1%)—the 2024 data comes from a third-party blog's reproduction of the annual report and could not be cross-verified; please refer to the latest annual report for specifics; in 2025, the top five customers totaled RMB 9.138 billion, or 21.88%, with related parties accounting for 2.51%, and the customers were Sinochem Group (8.07%), Sinopec (6.43%), Norinco Group (2.51%), Xinghe Petroleum (Liaoning) (2.45%), and China Aviation Oil (2.43%) (source: Sina Finance full announcement page, relatively high credibility).
• Structural bargaining dynamics in downstream industries: product homogenization is high and pricing is market-based, and the company does not have pricing power over downstream customers; in addition, oil product demand is affected by the accelerating substitution of new energy vehicles, and pressure on the downstream demand side is one of the important reasons the company has come under pressure in recent years (management statement).
• Accounts receivable turnover historically extremely high: 216.93x in 2021 and 365.82x in 2022 (CSI/company annual report basis), indicating extremely fast downstream collections and a very small accounts receivable scale relative to revenue, with low cash occupation pressure on the sales side. However, an abnormal change appeared in H1 2026: accounts receivable rose from RMB 178 million in H1 2025 to RMB 574 million (up 223.36% year-on-year), while operating cash flow per share in the same period was -RMB 0.9; the reason for the improvement in net operating cash flow was "a year-on-year decrease in crude oil procurement payments made in the current period." Attention should be paid to whether continued growth in receivables may imply relaxed downstream payment terms. (Sources: https://stock.stockstar.com/RB2026082100004804.shtml ; https://cs.com.cn/xinpi/cis/202204/t20220413_6259439.html)
• Customer concentration: the top five customers' share has historically ranged from about 13% to 23% (22.92% in 2021, 13.86% in 2022, 18.1% in 2024, 21.88% in 2025), indicating low concentration and a relatively dispersed structure; supplier concentration is extremely high: in 2025, the top five suppliers accounted for 98.55% of total procurement, of which the largest supplier, Norinco Group, accounted for 87.23% (related-party procurement), and in 2020 crude oil procurement already accounted for 91.37% of total procurement, showing a high degree of cost-side dependence on the Group's crude oil procurement channels. The source years for concentration data have been marked item by item; the 2024 customer data comes from a third-party blog's reproduction of the annual report and could not be cross-verified, while the 2025 supplier/customer data comes from the Sina Finance full announcement page; please refer to the latest annual report for specifics.

The company is positioned in the "midstream asset-heavy refining and processing" part of the smile curve: upstream crude oil costs are almost entirely externally purchased (and about 87% is centrally procured through the Group), making it a crude oil price-taker; downstream products are homogenized and priced market-by-market, and it earns money from refining spreads (crack spreads) and integrated unit synergies, making it a typical "asset-heavy, thin-margin, strongly cyclical" link. Further margin improvement depends not on pricing power but on: ① a cyclical recovery in oil prices and product spreads (such as the spread repair in H1 2026); ② "reducing oil and increasing chemicals," raising the share of high-value-added/customized polyolefins and specialty oil products; ③ lower unit costs brought by refining-chemical integration and scale effects. Management also explicitly stated that "consecutive losses are related to oil price volatility but are not the only reason; they also include insufficient downstream demand, oversupply, and accelerating new energy vehicle substitution," and the response is to optimize procurement, develop channels, and accelerate the development of high-value-added new products.

3. Financial Data and Valuation Analysis

3.1 Recent Operating Performance

The latest financial report is the 2026 semi-annual report (H1 2026); historical annual data is used for comparison. H1 2026 non-GAAP net profit attributable to parent was RMB 341 million, gross margin 19.33% (+8.40pct YoY), ROE 3.62% (+13.06pct YoY), asset-liability ratio 56.75% (-2.60pct YoY), and H1 earnings per share approximately RMB 0.23. For 2025, non-GAAP was -RMB 1.778 billion, EPS -RMB 1.10, weighted ROE -16.66%, gross margin 12.10%, asset-liability ratio 58.29%, and net operating cash flow -RMB 2.567 billion; the same notes show that AAStocks reported 2025 ROE as -18.21%, which is a basis difference that needs to be noted. For 2024, non-GAAP was -RMB 2.898 billion, EPS -RMB 1.75, weighted ROE -21.70%, proposed dividend of RMB 0.18 per 10 shares, total assets at year-end RMB 28.072 billion, and net assets attributable to parent of approximately RMB 11.48 billion. For 2023, EPS was RMB 0.044. There is a contradiction in the year-on-year basis for H1 2026 net profit attributable to parent: Stockstar stated "up 136.92% YoY" and non-GAAP "up 133.87% YoY," but Everbright Securities clearly stated an increase of approximately RMB 1.36 billion YoY (implying a loss of approximately -RMB 990 million in H1 2025), and when turning from loss to profit a positive percentage does not hold; the notes recommend using "turned from loss to profit, increasing by approximately RMB 1.36 billion YoY" as the basis.

The company is a refining and trading enterprise listed on the main board of the Shenzhen Stock Exchange (North Huajin Chemical Industries Co., Ltd.), mainly engaged in petrochemicals and chemical fertilizers, with China North Industries Group Corporation as its actual controller. H1 2026 revenue fell 12.9% YoY to RMB 17.511 billion, but net profit attributable to parent turned from loss to profit at RMB 365 million (an increase of approximately RMB 1.36 billion YoY), non-GAAP net profit attributable to parent was RMB 341 million, gross margin rose sharply by 8.40pct YoY to 19.33%, ROE rose 13.06pct YoY to 3.62%, and the asset-liability ratio fell 2.60pct YoY to 56.75%. Q2 single-quarter revenue was RMB 9.142 billion (-16.45% YoY, +9.2% QoQ), and net profit attributable to parent was RMB 321 million (an increase of approximately RMB 970 million YoY, +623% QoQ). In historical comparison, the company earned RMB 70.3 million in 2023, turned from profit to loss in 2024 at -RMB 2.795 billion, revenue rebounded 20.70% in 2025 to RMB 41.756 billion and the loss narrowed by RMB 1.031 billion YoY to -RMB 1.763 billion, and in H1 2026 it further turned around, now in a transition phase of bottom repair and loss-to-profit in the refining cycle. Note that there is a contradiction in the H1 2026 year-on-year basis, and the statement should be "turned from loss to profit, increasing by approximately RMB 1.36 billion YoY," not the +136.92% figure; at the same time, 2025 ROE has a basis difference between -16.66% (weighted) and -18.21%, and the basis must be noted when citing.

3.2 Earnings Forecast

The forecast data mainly comes from the eastmoney earnings forecast summary page (average basis over the past six months), corresponding to 2025A/2026E/2027E/2028E P/E of -4.00/15.71/10.74/7.34, ROE of -16.66%/4.40% (2 firms)/6.10% (2 firms)/8.20% (1 firm), and net assets per share of RMB 6.05 for 2025A, RMB 6.34 for 2026E (1 firm), RMB 6.67 for 2027E (1 firm), and missing for 2028E. By institution: Changjiang Securities' April 27, 2026 annual report review forecast 2026–2028 net profit attributable to parent of RMB 640/690/960 million, corresponding to P/E of 13.6X/12.7X/9.0X based on the April 24, 2026 closing price, maintaining "Buy"; Changjiang Securities on May 12, 2026 (as relayed by Hithink iNews) rated Buy and forecast 2026 net profit of RMB 458 million, without a target price; Everbright Securities on April 16, 2026 forecast 2025–2027 net profit attributable to parent of -RMB 1.746 billion/RMB 440 million/RMB 628 million, EPS -RMB 1.09/RMB 0.28/RMB 0.39, "Buy"; Everbright Securities on August 21, 2026 (the latest formal forecast) raised 2026–2028 net profit attributable to parent to RMB 587/641/709 million (2026 raised by 33%), corresponding to EPS of approximately RMB 0.37/0.40/0.44, "Buy." The notes indicate that the above are excerpts from multiple research reports, and forecasts across institutions diverge markedly (2026 net profit attributable to parent broadly in the range of RMB 440–640 million); Changjiang Securities' 2026 forecast at different times is inconsistent between RMB 458 million and RMB 640 million, which is a difference in basis by the same brokerage at different times; only 2 institutions cover the stock, making this a weak consensus rather than broad coverage, and only 1 institution forecasts 2028.

3.3 Valuation Level and Institutional Ratings

As of the close on 2026-09-11, the company's share price was RMB 5.58 (-3.63% that day), total share capital/floating share capital was 1.599 billion shares, and total market capitalization was RMB 8.925 billion. On valuation: dynamic P/E is approximately 12.22 (based on annualized H1 2026); P/E (TTM) is -21.82 (the past 12 months still include losses, so the negative value is meaningless); static P/E is -5.06 (based on the 2025 loss); P/B is approximately 0.88–0.89 (below book value). The 52-week range is RMB 3.69–6.90, the historical high is RMB 14.44, and the historical low is RMB 1.66. Data sources are Securities Times quotes, the eastmoney quote page, Baidu Stock Connect, and Cailian Press, and multiple sources are cross-consistent (total market capitalization RMB 8.925 billion, P/B approximately 0.88). The notes point out that individual sites show inconsistent data (for example, the Ping An Securities page shows P/B 0.74, dynamic P/E 40.84, and total market capitalization RMB 7.245 billion; Jinfeng Finance shows P/E -22.49 and total market capitalization RMB 9.197 billion), suspected to be cached/outdated basis, and these are not adopted. Brief valuation comment: the company is in a transition period of bottom repair and loss-to-profit in the refining cycle; static and TTM valuations are distorted by losses, and the market mainly prices it using dynamic P/E and P/B. With dynamic P/E at approximately 12x and P/B at approximately 0.88 (below book value), combined with the 2026 turnaround expectation, the valuation is at its own historical low and at a low level for the industry (Baidu Stock Connect also gives the judgment that "valuation is at a relatively low historical level and low for the industry"). Regarding target prices, new research reports in 2026 (Changjiang, Everbright) did not give explicit target prices, and only 1 analyst on Investing.com gave a 12-month average target price of RMB 7.60, with limited representativeness; historical target prices (Haitong International's RMB 9.08 on 2024-04-16 and Southwest Securities' RMB 8.58 on 2023-04-20) are outdated and not comparable with current fundamentals. Risks to note: the time anchor is 2026-09-11 (some site data dates are from 2026-09-07 to 09-11, slightly lagging), and financial report data is as of H1 2026; the earnings forecast is a weak consensus covered by only 2 institutions and with large divergence (2026 net profit attributable to parent of RMB 440–640 million); institutions judge that the 2026 turnaround mainly depends on Middle East geopolitical conflicts pushing up oil prices and the prosperity of refined oil/olefins, and if geopolitics ease and oil prices fall, there is downside risk to earnings forecasts; the progress of the Group's Saudi Aramco refining project (Huajin Aramco) and whether the company participates are important but uncertain long-term variables.

4. Recent News and Announcements

4.1 Target Identification: Code 000059 Is Huajin Chemical

Stock code 000059 corresponds to Huajin Chemical (North Huajin Chemical Industries Co., Ltd.), listed on the main board of the Shenzhen Stock Exchange (000059.SZ), with a listing date of 1997-01-30, registered in Panjin City, Liaoning Province, and registered capital of approximately RMB 1.599 billion (total share capital of approximately 1.599 billion shares, fully floating). The controlling shareholder is North Huajin Chemical Industries Group Co., Ltd. (27.16% stake), and the actual controller is China North Industries Group Corporation; major shareholders also include China North Industries Investment Management Co., Ltd. (9.96%) and Zhenhua Oil Holding Co., Ltd. (9.92%). It is mainly engaged in the production and sale of petrochemicals and chemical fertilizers, with main products including diesel refined oil, polypropylene/polyethylene resins, ABS resins, fertilizers, mixed aromatics, C9, fuel oil, asphalt, and lubricants, and it has three production bases in Panjin, Huludao, and Kuqa (Xinjiang). Note: code 000059 is also used by the fund "Guolian An CSI Pharmaceutical 100A" (an OTC code), so do not confuse them when searching.

4.2 2025-Related Announcements and Background

On 2025-01-21, it released the 2025 annual earnings forecast (corresponding to the 2024 annual report: forecast net profit of approximately -RMB 2.9 billion to -RMB 2.6 billion, -4225% to -3798% YoY). On 2025-02-28, it released the "Valuation Enhancement Plan" (Announcement No. 2025-004), because in 2024 the daily closing price for 12 consecutive months was below the latest accounting year's net assets per share attributable to parent (triggering the "long-term below-book" requirement); the plan proposed efficiency improvement, actively seeking M&A and restructuring, cash dividends, advancing share buybacks (intended to use own funds or special bank buyback loans), and encouraging major shareholders to increase holdings. On 2025-08-13/29, it disclosed the 2025 interim report: net profit attributable to parent of -RMB 989.1 million, down 33.15% YoY. On 2025-10-29, it disclosed the 2025 Q3 report: net profit attributable to parent of -RMB 1.394 billion (+26.24% YoY, loss narrowed), basic EPS -RMB 0.8713. On 2025-12-26, the third extraordinary shareholders' meeting (announced 12-27): passed the "Proposal on Appointing an Accounting Firm."

4.3 January–April 2026 Announcements and Events

On 2026-01-09/10, it disclosed a notice to convene the first extraordinary shareholders' meeting of 2026, with agenda items including the "Proposal on Purchasing Liability Insurance for Directors and Senior Management"; the meeting was held on 2026-01-30. On 2026-01-21, it released the "2025 Annual Earnings Forecast" (Shenzhen Stock Exchange announcement, earnings forecast; the specific detailed values were not obtained in this round). On 2026-04-11, it released the "Announcement on Returning Raised Funds." On 2026-04-22/23, notice of the annual shareholders' meeting, with agenda items including the 2025 board of directors work report, the 2025 profit distribution plan, the 2026 daily related-party transaction expectation report, temporary replenishment of working capital with idle raised funds, and the special report on the deposit and use of raised funds; at the same time, it released the "Announcement on No Profit Distribution Proposed for 2025" (that is, no dividend for 2025). On 2026-04-24, it released the "Announcement on Holding the 2025 Annual and 2026 First Quarter Results Briefing." On 2026-04-28, it disclosed the "2026 First Quarter Report" (according to interactive Q&A, the first quarter achieved a turnaround).

4.4 May–June 2026 Announcements and Events: Annual Shareholders' Meeting Related-Party Transaction Proposal Voted Down and Aftermath

On 2026-05-15, the 2025 annual shareholders' meeting was held; on 2026-05-16, the "2025 Annual Shareholders' Meeting Resolution Announcement" was announced. Special note: proposal 3.00 of this shareholders' meeting (the 2026 daily related-party transaction expectation report) was not approved. On 2026-05-29, it released the "Announcement of the 17th Meeting of the 8th Board of Directors"; on 2026-05-30, it released the "Announcement on the Resignation of the Chairman and a Director and the Vice Chairman Acting as Chairman" (senior management change). On 2026-05-28/29, because the related-party transaction proposal was voted down, a second extraordinary shareholders' meeting was separately convened to reconsider the "2026 Daily Related-Party Transaction Expectation Report"; on 2026-06-12, a notice announcement was released for convening the second extraordinary shareholders' meeting; on 2026-06-16/17, the resolution of the second extraordinary shareholders' meeting was announced. On 2026-06-05, a "Correction Announcement" was released, and an "updated" version of the "2025 Annual Shareholders' Meeting Resolution Announcement" was issued (Announcement No. 2026-018). On 2026-06-26/27, the "Announcement of the 18th Meeting of the 8th Board of Directors" was released (senior management change), and notice was given to convene the third extraordinary shareholders' meeting of 2026 (agenda: by-election of Zhang Jinpeng and Zhang Yan as non-independent directors of the 8th Board).

4.5 July 2026 Announcements and Events: Earnings Forecast, Director By-Election, and Senior Executive Detention Investigation

On 2026-07-10/11, it released the "2026 Semi-Annual Earnings Forecast" (Shenzhen Stock Exchange announcement, earnings forecast). On 2026-07-17/18, it announced the "2026 Third Extraordinary Shareholders' Meeting Resolution Announcement" (passing the proposal to by-elect non-independent directors). On 2026-07-29/30, it released the "Announcement on a Senior Executive Being Subject to Detention Investigation": Deputy General Manager Yan Zenghui was placed under case investigation by a supervisory organ and subject to residential detention measures. Sources: news from the discipline inspection and supervision group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed at China North Industries Group Corporation / Gelonghui / AASTOCKS (2026/07/29 18:04 CST).

4.6 August 2026 Announcements and Events: Interim Report Disclosure and Special Verification Announcement

On 2026-08-19/20, it disclosed the "2026 Semi-Annual Report" and the "2026 Semi-Annual Continuous Risk Assessment Report on Ordnance Finance Co., Ltd." and a total of 8 announcements. Interim report data: operating revenue RMB 17.511 billion (-12.90% YoY), net profit attributable to parent RMB 365 million (turned around YoY, +136.92%), non-GAAP net profit of approximately RMB 340 million (turned around YoY); main business revenue/related-party transactions (purchases of goods from companies under China North Industries Group Corporation totaled RMB 12.620 billion). On 2026-08-25, it released the "Announcement on Carrying Out Special Verification of Relevant Matters" (Shenzhen Stock Exchange announcement category: Other). This item appears only in a Sohu memo, lacks cross-verification, and the specific verification matters and conclusions are unknown, making it an important uncertainty.

4.7 September 2026 Announcements and Events: Number of Shareholders and Patent Grants

On 2026-09-03, the number of shareholders was announced: as of 2026-08-31, the total number of shareholders was 59,680, an increase of 12,614 from the previous period (corresponding to 47,836 as of 2026-06-30). The sharp rise in the number of shareholders may be related to retail investor attention brought by a phased share price rise. On 2026-09-11, multiple patent grants were disclosed in a concentrated manner ("boiler feedwater header mutual backup device," "online self-cleaning melt filter," "a method for evaluating and comparing the friction coefficient of hydrate materials," etc.), with 35 new patent grants so far this year, +40% YoY.

4.8 Earnings Forecast (Key)

The 2026 semi-annual earnings forecast (disclosed 2026-07-10/11): expected H1 net profit attributable to parent of RMB 350–400 million, up 135.38%–140.44% YoY; non-GAAP net profit of RMB 325–375 million, up 132.31%–137.28% YoY. The company explained that during the reporting period, the global crude oil supply-demand pattern underwent a phased adjustment, driving up market prices of chemical products. The actually disclosed 2026 interim report: net profit attributable to parent of RMB 365.2 million and non-GAAP of RMB 341 million, within the forecast range, turning around YoY (the same period in 2025 was -RMB 989.1 million). The 2025 annual earnings forecast (disclosed 2026-01-21): corresponding to the 2025 annual report, the specific detailed values were not obtained in this round (only the fact of disclosure is confirmed); the 2025 Q3 report was still a loss of RMB 1.394 billion, and the full year was still expected to be a loss (supported by the proposed no profit distribution for 2025). For Q3 2026: as of the search date, no Q3 earnings forecast released by the company was found. On Interactive Easy on 2026-09-03, the company clearly responded that "it has not released any form of public forecast regarding third-quarter results," neither confirming nor denying rumors of a "third-quarter performance decline," and reminded investors to rely on statutory disclosures.

4.9 Buybacks/Increases in Holdings/Shareholder Developments

The Valuation Enhancement Plan (2025-02-28, Announcement 2025-004) promised directions including "actively promoting and implementing share buybacks," "encouraging major shareholders to increase holdings," and "actively seeking M&A and restructuring." As of the search date, no actual buyback plan or buyback progress announcement disclosed by the company has been seen. On 2026-06-17, an investor asked "at what share price level buyback measures would be triggered," and the company replied emphasizing that "in order to safeguard shareholder rights and reduce investment losses, it suspended the previous fundraising project and is seeking new projects for demonstration... currently the raised funds are temporarily used to replenish working capital"; on 2025-06-13, its response to "when will increases in holdings, buybacks, and M&A restructuring be implemented" was also only "to be carried out in an orderly manner according to the Valuation Enhancement Plan." Dividends: on 2026-04-23, it released the announcement "on no profit distribution proposed for 2025 (no dividend)" (due to the 2025 loss). Historical dividends are shown in the 2024 annual report dividend (record date 2025-06-18, ex-rights/ex-dividend date 2025-06-19). Changes in the number of shareholders: 47,836 as of 2026-06-30 (-658 from the previous period); increased to 59,680 as of 2026-08-31 (+12,614 from the previous period). Top ten shareholders (according to Huaxi F10, page update date 2026-08-22): North Huajin Group 27.16% (unchanged), China North Industries Investment 9.96% (unchanged), Zhenhua Oil 9.92% (unchanged); individual shareholders Yang Quanyu 0.97% (increased), Li Qiang 0.78% (increased); Hong Kong Central Clearing 0.73% (decreased); Dong Yuelin, Zhou Wei, Penghua Fund–Social Security Fund Portfolio 1804, and Xu Jingying were new entrants. Note: this F10 does not clearly mark the reporting period and does not show announcements of increases or decreases by major shareholders holding more than 5%; the specific increases or decreases by the above directors, supervisors, senior managers, and major shareholders must be based on formal equity change announcements.

4.10 Regulatory/Senior Management/Governance News (Important Negative)

2026-07-29: Deputy General Manager Yan Zenghui was placed under case review and investigation by the discipline inspection and supervision group of the Central Commission for Discipline Inspection and the National Supervisory Commission stationed at China North Industries Group Corporation on suspicion of serious violations of discipline and law, and was subject to residential detention measures; the company said production and operations were not affected and that proper arrangements had been made for the work he was responsible for. 2026-05-30: the chairman and a director resigned, and the vice chairman acted as chairman (senior management change). 2026-06-27: at the 18th meeting of the 8th Board of Directors, Zhang Jinpeng and Zhang Yan were by-elected as non-independent directors (approved by the extraordinary shareholders' meeting on 2026-07-17). 2026-08-25: "Announcement on Carrying Out Special Verification of Relevant Matters"—whether it is related to the aforementioned investigation of the senior executive is not detailed in public searches and is a major uncertainty; verifying against the original company announcement is recommended.

4.11 Fund Flow/Share Price Background (Cross-Referenced with Announcements)

(The following are mostly third-party data, with inconsistent sources and bases, and divergence exists.) Close on 2026-09-11: RMB 5.58, down 2.96% for the week; latest total market capitalization of approximately RMB 8.925 billion, ranking 12/30 by market capitalization in the "Refining & Trading" sector. Recent high of approximately RMB 6.90; close on 2026-06-09 was approximately RMB 4.25. 2026-09-01 (Sina quotes): price approximately RMB 6.01, at a point when the day's change was +0.23 (+3.98%), with total market capitalization of RMB 9.613 billion. Divergence in fund flows: Stockstar said main-force funds had a total net inflow of RMB 66.0195 million this week (9.7–9.11); Hithink said that on 2026-09-11 the stock fell 3.63% in a single day, turnover was RMB 399 million, and main-force funds had a net outflow of RMB 24.5063 million; Stockstar said main-force net selling on 9-10 was RMB 1.0526 million in a single day. The three have different bases (weekly/daily, different algorithms), so do not simply add them together. Institutional ratings: within the past 90 days, a total of 2 institutions gave ratings, both "Buy."

4.12 Uncertainties and Limitations to Be Noted

1) Timing: all price/fund flow data are third-party data from early to mid-September 2026; the latest company-level announcements are the 2026-08-25 special verification announcement and the 2026-09-11 patent grants. Please understand this as "around 2026-09-12." 2) The "2026-08-25 special verification of relevant matters" is visible only from a single source (a Sohu memo) and has not been cross-validated by a second source; its trigger reason, scope, and conclusion are all unclear. 3) The specific range of the 2025 annual earnings forecast (2026-01-21) was not obtained from the original text in this round, and only the fact of disclosure is confirmed; the full-year 2025 loss is indirectly supported by "Q3 loss of RMB 1.394 billion + no dividend for the full year." 4) Changes in the number of shareholders and the top ten shareholders come from third-party F10, the reporting period is unclearly marked, and some individual shareholder increases/decreases have no corresponding formal announcements, so they are for reference only. 5) Fund flow data conflict directionally across platforms (weekly net inflow vs. daily net outflow), which is a statistical basis difference and should not be used as a single conclusion. 6) "Whether buybacks have been implemented": as of the search date there is no implemented buyback plan or progress announcement, and the buyback in the valuation enhancement plan is only a directional statement; if the report needs a conclusion, it is recommended to state that "no actual buyback has yet been seen." 7) The investigation of the senior executive (Yan Zenghui) and the chairman's resignation are substantive negative governance events, and together with the long-term below-book status in 2025 and no dividend in 2025, they form a complex signal of "governance + fundamental repair" coexisting, and it is recommended to flag them in parallel in the report. 8) Key information verification sources are all public web pages, and the original exchange PDF full texts have not been verified; if precision down to announcement numbers and voting ratios is needed, it is recommended to further pull the original PDFs from cninfo or the Shenzhen Stock Exchange.

5. Share Price Trend and Technical Analysis

5.1 Price Overview

5.2 Technical Indicators

The research notes show that Huajin Chemical (000059.SZ) fell 2.96% this week (9.7–9.11). The two price references appearing in the notes are RMB 5.58 (-3.63%) and RMB 5.96 (-3.09%), but the corresponding trading days are unclear and the same time point cannot be confirmed. On the fund flow side, main-force funds had net buying of RMB 21.9040 million on September 9, net selling of RMB 1.0526 million on September 10, and net selling of RMB 32.4752 million on September 11; on the single day of the 3.63% decline, main-force funds had a net outflow of RMB 24.5063 million, while the weekly total main-force funds were still a net inflow of RMB 66.0195 million, showing that within the week funds shifted from inflow to consecutive outflow, while the weekly total remained positive, indicating clear divergence. On technical indicators, the notes do not provide any specific values for MACD, KDJ, RSI, Bollinger Bands, or moving averages, nor do they include 52-week highs/lows, turnover details, or top ten shareholder concentration data, so a complete technical judgment cannot be completed; the key levels and scenario analysis below can only provide limited qualitative descriptions based on the prices and fund data appearing in the notes, and missing fields have been truthfully marked.

5.3 Short-Term Outlook (Next Week, Scenario Analysis, for Reference Only)

⚠️ Risk Warning: The following content is only a subjective scenario analysis based on the existing data in the research notes, does not constitute investment advice, and anyone acting on it does so at their own risk.

① Key Technical Levels

② Scenarios for the Next Week (Subjective Weighting, Not Statistical Probability)

• Range-bound consolidation (subjective weighting: medium (a subjective judgment based on existing fund flow and technical information, not statistical probability)): Based on the divergent state in the notes where weekly main-force funds had a total net inflow of RMB 66.0195 million but the last two trading days saw consecutive net outflows, the share price may fluctuate repeatedly around the two reference price levels of RMB 5.58 and RMB 5.96 appearing in the notes. Trigger conditions: no obvious turnover expansion, no new news catalysts, and alternating single-day main-force inflows and outflows. This scenario's weight is marked as a subjective judgment, not statistical probability.
• Weaker downside (subjective weighting: relatively high (a subjective judgment based on existing fund flow and technical information, not statistical probability)): If main-force funds continue the net outflow trend of September 10 and September 11 (net selling of RMB 1.0526 million and RMB 32.4752 million, respectively), and turnover remains or expands while the share price cannot recover the RMB 5.58 area cited in the notes, then the risk of weaker downside rises. Trigger conditions: continued single-day main-force net outflows, turnover expansion, and a downward shift in the price center. This scenario's weight is marked as a subjective judgment, not statistical probability.
• Rebound and strengthening (subjective weighting: relatively low (a subjective judgment based on existing fund flow and technical information, not statistical probability)): If main-force funds turn back to net inflows and approach the magnitude of the RMB 21.9040 million net buying on September 9, and turnover expands simultaneously, a rebound and strengthening may occur. Trigger conditions: single-day main-force funds shift from net outflow to sustained net inflow, and turnover further expands from the RMB 399 million level cited in the notes. This scenario's weight is marked as a subjective judgment, not statistical probability.

③ Fund Flow and Liquidity Background

The liquidity-related information provided by the research notes is limited: only the single-day turnover of RMB 399 million (on the day of the 3.63% decline) appears as a clear value, while turnover rate data is missing, making it impossible to judge that day's turnover level or its position relative to the stock's historical range. On shareholder structure, the notes include source links for top ten shareholders, top ten floating shareholders, and institutional/fund holdings details, but do not provide specific holding concentration values, nor do they indicate whether the top ten shareholders include mainstream institutions such as public funds, social security, or QFII, or whether they are only controlling parties and industrial capital shareholders; such data usually has a disclosure lag of more than one quarter, and the actual structure may have changed, so the latest periodic report should prevail. With turnover rate and turnover details missing, it is impossible to make a quantitative judgment on bid-ask depth and market impact costs; the above fund flow data are also only at the single-day/single-week level and should not be extrapolated.

If subsequent single-day turnover continues to expand and clearly exceeds the RMB 399 million level appearing in the notes, accompanied by main-force funds shifting from net outflow to net inflow, this can be regarded as an observational signal of fund participation; the specific threshold needs further calibration against the stock's recent turnover range.

④ Points to Watch (Only Observational Ideas, Not Trading Instructions)

• Watch the price action around the two levels of RMB 5.58 and RMB 5.96 cited in the notes, and whether the price can stabilize—only an observational idea, not a trading instruction.
• Watch whether main-force funds can shift from the consecutive net outflows of September 10 and September 11 to sustained net inflows (referencing the magnitude of RMB 21.9040 million net buying on September 9)—only an observational idea, not a trading instruction.
• Watch whether single-day turnover can continue to expand and exceed the RMB 399 million level in the notes, as an observational signal of fund participation—only an observational idea, not a trading instruction.
• Watch the subsequent supplementation of missing data such as turnover rate, top ten shareholder holding concentration, and institutional holdings, as well as changes in shareholder structure disclosed in periodic reports—only an observational idea, not a trading instruction.

The above scenario analysis is compiled based on the price and fund data appearing in the research notes (the specific data dates are not uniformly specified in the notes) and limited historical information. Short-term share prices will also be disturbed by multiple factors such as news, fund flows, and the broader market environment, and technical indicators themselves have lag and limitations. This section did not obtain key data such as MACD, KDJ, RSI, Bollinger Bands, moving averages, and 52-week highs/lows. It does not guarantee actual future trends and does not constitute buy or sell advice. Please make independent judgments in light of the latest market information and bear investment risks yourself.

6. Industry Landscape and Competitor Analysis

6.1 Industry Status

China's refining and chemical industry has low concentration and intense competition. In 2023, CR2 (PetroChina + Sinopec) was approximately 39.1%, and CR5 was approximately 43.8%; in H1 2024, the two leaders together had a market share of approximately 39.1%, while the share of each remaining enterprise was generally below 5%. Upstream crude oil/natural gas has strong bargaining power (the company is a price-taker), while downstream buyers have relatively low bargaining power; barriers to potential entrants are high (oil and gas production is monopolized by SOEs); the threat of substitutes comes from coal chemicals (coal-to-liquids/gas/ethylene, methanol). In the competitive tiers, the leaders are PetroChina and Sinopec; the first tier is Hengli Petrochemical, Rongsheng Petrochemical, and Wanhua Chemical; Huajin Chemical and others belong to the second tier (one of the extra-large refining-chemical integrated comprehensive petrochemical enterprises, but significantly smaller than the front of the tier).

6.2 Competitive Landscape

• Industry concentration is not high and competition is intense: in 2023, CR2 was approximately 39.1% and CR5 approximately 43.8%; in H1 2024, the two leaders together had a market share of approximately 39.1%, while the share of each remaining enterprise was generally below 5% (source: stock.stockstar.com 2024 petrochemical competitive landscape).
• Upstream bargaining power is strong (the company is a crude oil price-taker), while downstream buyers have relatively low bargaining power; barriers to potential entrants are high (oil and gas production is monopolized by SOEs); the threat of substitutes comes from coal chemicals (coal-to-liquids/gas/ethylene, methanol).
• Competitive tiers: the leaders are PetroChina and Sinopec; the first tier is Hengli Petrochemical, Rongsheng Petrochemical, and Wanhua Chemical; Huajin Chemical and others belong to the second tier and are one of the extra-large refining-chemical integrated comprehensive petrochemical enterprises, but significantly smaller than the front of the tier.
• Huajin Chemical's moat mainly comes from "central SOE platform + stability of overseas crude oil resources + the largest lubricant base oil base in the north + refining-chemical integration synergy + specialty oil product differentiation," but its profitability and growth are rated "poor" by third parties, and in valuation terms it is a below-book/low price-to-sales variety.
• Comparable company market capitalization/revenue data are approximately 2026 range data, from the eastmoney peer ranking page; that page marks "data from the 2026 Q1 report" but the revenue figures are consistent with the 2026 interim report (revenue RMB 17.51 billion, net profit attributable to parent RMB 365.2 million), indicating confusion in the labeling basis, and when citing, the 2026 interim report data should be used as the limit (research notes uncertainty item 6).
• Huajin Chemical's market capitalization has same-source but different values (RMB 7.533 billion vs. RMB 8.925 billion), due to differences in capture timing and page refresh, not data at the same point in time, and "approximately" must be noted when citing (research notes uncertainty item 7).

6.3 Main Competitors

Huajin Chemical is not in the first tier by scale: on an H1 2026 basis, its operating revenue (approximately RMB 17.51 billion) and net profit attributable to parent (approximately RMB 365 million) are significantly lower than Rongsheng Petrochemical (revenue approximately RMB 129.4 billion, net profit attributable to parent approximately RMB 5.111 billion) and Hengli Petrochemical (revenue approximately RMB 98.26 billion, net profit attributable to parent approximately RMB 7.206 billion), and its revenue scale is also lower than Shanghai Petrochemical (revenue approximately RMB 38.99 billion, net profit attributable to parent approximately RMB 300.4 million), although its profitability is close to Shanghai Petrochemical's. Compared with private large refiners (Rongsheng Petrochemical, Hengli Petrochemical), the company is smaller and at a disadvantage in both integration and refining capacity scale; differentiation mainly comes from its central SOE platform, stability of overseas crude oil resources, the largest lubricant base oil base in the north (with production capacity for both naphthenic and paraffinic base oils), and specialty products such as specialty oils/ABS/trimellitic anhydride; however, third parties rate its profitability and growth as "poor," and in valuation terms it is a below-book/low price-to-sales variety. Note: comparable company market capitalization/revenue data come from the eastmoney peer ranking page, which has labeling basis confusion (labeled as the "2026 Q1 report" but figures consistent with the 2026 interim report), and Huajin Chemical's market capitalization has same-source different values (RMB 7.533 billion vs. RMB 8.925 billion, due to capture timing differences), so "approximately" must be noted when citing.

7. Risk Warnings

• Excessively high crude oil procurement concentration: in 2025, the top five suppliers accounted for 98.55% of procurement, of which China North Industries Group Corporation's procurement accounted for 87.23% of annual procurement; the company's cost side is highly dependent on the Group's centralized procurement channels; if procurement arrangements, internal transaction terms, or crude oil prices change adversely, refining profits may be affected.
• Refining spread and product price volatility risk: the company is in the asset-heavy, thin-margin, strongly cyclical refining and processing link, is a price-taker for crude oil, and lacks obvious pricing power in refined oil, polyolefins, and other chemical products. It posted consecutive losses in 2024 and 2025, and the H1 2026 turnaround mainly relied on gross margin and spread repair; if oil prices or product spreads fall back, earnings forecasts may be revised down.
• Downstream demand and product structure risk: the company's products are highly homogenized, and oil product demand also faces pressure from accelerating new energy vehicle substitution; in H1 2026 operating revenue fell 12.90% YoY, and although the polyolefin business turned from loss to profit, the improvement was limited; if downstream demand is insufficient, the industry is oversupplied, or high-value-added new product volume ramp-up falls short of expectations, profit repair may be hindered.
• Earnings sustainability risk: the company's 2025 net loss attributable to parent was RMB 1.763 billion and non-GAAP net loss was RMB 1.778 billion, while H1 2026 net profit attributable to parent was RMB 365 million, but ROE was only 3.62%; the full-year earnings forecast is covered mainly by a small number of institutions, with the 2026 forecast range at approximately RMB 440–640 million and large forecast divergence; a single-period turnaround does not mean operations have returned to a stable profit state.
• Governance and compliance risk: in May 2026, the chairman and a director resigned; in July, Deputy General Manager Yan Zenghui was placed under investigation and subject to residential detention; in August, the company disclosed a special verification announcement on relevant matters, but currently public information does not clarify the reason, scope, and conclusion of the verification, and related matters may affect management stability, internal controls, and market confidence.
• Related-party transaction and shareholders' meeting matter risk: the 2026 daily related-party transaction expectation report was not approved at the 2025 annual shareholders' meeting in May 2026 and was subsequently reconsidered; in H1 2026, the company purchased goods totaling RMB 12.620 billion from companies under China North Industries Group Corporation, and the related-party transaction arrangements and approval progress require continued attention.
• Cash flow and accounts receivable risk: historically the company's accounts receivable turnover has been high, but in H1 2026 accounts receivable rose from RMB 178 million in the same period of 2025 to RMB 574 million, up 223.36% YoY, while operating cash flow per share in the same period was negative; if accounts receivable continue to rise, it may increase working capital occupation and weaken the quality of profit realization.
• Valuation and market trading risk: as of September 11, 2026, the company's static P/E and trailing P/E remain negative due to losses, and the dynamic P/E depends on the full-year turnaround expectation; recent price and fund flow data differ across platforms and time points, and technical analysis lacks key data such as MACD, KDJ, RSI, moving averages, and 52-week highs/lows, making it difficult to quantitatively judge short-term direction and support/resistance based on existing data.

8. Conclusion and Outlook

The core growth logic of Huajin Chemical lies in refining spread repair, recovery in the petrochemical segment gross margin, refining-chemical integration synergy, and high-value-added product development. In H1 2026, the gross margin of crude oil processing and products rose from 14.31% to 23.59%, and polyolefin products turned from loss to slight profit, showing that product structure and spread improvement have already had a direct effect on profit. Whether the company's subsequent profitability can continue depends on crude oil prices, refined oil and chemical product spreads, downstream demand, and the volume ramp-up of "reducing oil and increasing chemicals" and specialty products.

The market has expectations for the company's full-year 2026 turnaround and subsequent earnings improvement, but institutional forecast coverage is limited and divergent, with 2026 net profit attributable to parent forecast at approximately RMB 440–640 million. The H1 2026 profit improvement has not yet translated into a high return on earnings, with ROE at 3.62%, and revenue is still declining YoY. Therefore, judgments on the company's fundamentals should focus on whether the earnings repair is sustainable, and conclusions should not be drawn solely based on a single-period turnaround or a below-book valuation.

Looking ahead, the company needs to improve its dependence on cyclical spreads while maintaining coordination between crude oil procurement and refining units, and advance the development of high-value-added polyolefins, specialty oils, and other products; at the same time, the buybacks, increases in holdings, and M&A restructuring in the valuation enhancement plan have not yet been seen to be implemented as of the search date. The results of the special verification of governance matters, management stability, subsequent quarterly results, and related-party transaction arrangements will be key variables in judging the quality of the company's operational repair and whether market expectations can stabilize.

Data Sources

• Huajin Chemical (000059.SZ) In-Depth F9-PC_HSF9 Data
• Huajin Chemical (000059)_Stock Overview_Stock Price_Real-Time Quotes_Chart_News_Stock Commentary_Financial Reports_FinScope-AI Makes Investing Simpler