Shenyang Chemical Industry (000698.SZ) announced its performance forecast for the first half of 2024, with a net profit attributable to shareholders of listed companies of -0.24 billion yuan to -0.34 billion yuan, an increase in losses of -1.68% to 39.28% compared to the same period last year; after deducting non-recurring gains and losses, the net profit loss is 70 million yuan to 90 million yuan, a decrease in losses of 71.18% to 62.94% compared to the same period last year; basic earnings per share are between -0.293 yuan to -0.415 yuan.

The company's net profit attributable to the parent company in the first half of the year decreased year-on-year, mainly due to:

1. In the end of June, due to the bankruptcy liquidation application filed by Ancient Capital (Xi'an) Cultural Communication Co., Ltd. against the subsidiary of the company, Shenyang Paraffin Chemical Co., Ltd. (hereinafter referred to as "Shenyang Paraffin"), Shenyang Paraffin officially entered bankruptcy proceedings and appointed a manager by the court. The company has lost control, and will no longer be included in the scope of consolidation. The expected impact range of non-recurring gains and losses for this period is -1.5 to -0.25 billion, which will be included in investment income. The impact amount will be determined according to the implementation of the liquidation plan, and the specific amount will be subject to the audit results of the accountant.

2. The net profit of the mother company of Shenyang Chemical Industry increased year-on-year in the first half of 2024, mainly due to the increase in sales volume and revenue, and the decrease in unit cost. The total profit of Zhonghua East (Zibo) Co., Ltd., a subsidiary company, remained basically the same compared to the same period last year.