Satellite Chemical's Light Hydrocarbon Leader Reaches New Heights; Low-Carbon New Materials Open a New Chapter of Growth

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(Source: Bo Cai Jing Cai)

On the evening of March 23, Satellite Chemical (002648.SZ) released its financial data for 2025; during the reporting period, the company achieved operating revenue of 46.068 billion yuan, a 0.92% increase compared to 45.648 billion yuan in 2024; net profit attributable to shareholders of the listed company was 5.311 billion yuan, a 12.54% decrease from 6.072 billion yuan in 2024; net profit excluding non-recurring gains and losses was 6.292 billion yuan, up 4.02% from 6.048 billion yuan in 2024. Profitability shows divergence, mainly due to external factors like industry cycle fluctuations affecting net profit attributable to shareholders, while non-recurring profit grew positively, fully reflecting the company’s strong profitability resilience in core business, with significant results from process optimization, cost reduction, and efficiency enhancement measures.

In terms of financial condition, as of the end of 2025, the company’s total assets reached 69.565 billion yuan, a 1.84% increase from 68.305 billion yuan at the end of 2024; net assets attributable to shareholders were 33.554 billion yuan, a 10.79% increase from 30.286 billion yuan at the end of 2024. Asset scale steadily expanded, net assets increased significantly, debt ratio further optimized, and asset structure remained reasonable, laying a solid financial foundation for future project construction and sustained business development.

C3 Core Business: The Stabilizer of Performance

As a leading private chemical enterprise in China, Satellite Chemical’s C3 segment centers on propane dehydrogenation (PDH) to build a complete industry chain. Leveraging industry position, integration, capacity advantages, and downstream product layout, it serves as the company’s “ballast” for stable performance and cyclical resilience, leading domestic high-quality transformation of the C3 industry.

This segment leads in fields such as acrylic acid and esters, PDH, SAP, and polymer emulsions. During the reporting period, the company’s Pinghu base’s 80,000-ton-per-year new pentanediol plant and Jiaxing base’s 90,000-ton-per-year acrylic acid project were successfully put into operation, achieving “three consecutive years of growth” in acrylic acid production, further improving the company’s high-end fine chemical matrix. The industry chain’s coverage, product richness, and cost synergy advantages continue to strengthen, with comprehensive reinforcement and enhancement of core integrated competitiveness.

Satellite Chemical states that it will continue to steadily promote new project construction at various bases, further accelerate the construction of projects such as 160,000 tons/year of high-performance polymer emulsions, 300,000 tons/year of superabsorbent resin, 200,000 tons/year of refined acrylic acid, and 260,000 tons/year of aromatic joint units, to promote high-value-added products from light hydrocarbons, deepening and refining the industry.

Additionally, capacity advantages support industry position. The company has formed a globally leading capacity layout and continues to expand. By March 2026, the capacity of core products is substantial with self-supplied raw materials. Several ongoing/planned capacities, such as acrylic acid, esters, SAP, and polymer emulsions, will further consolidate its leading position after commissioning.

High-end and low-carbon downstream products are core development directions. High-end focuses on high-value products, with refined acrylic acid and specialty acrylic esters targeting specific markets. SAP, certified internationally, features low carbon emissions and high-end market share. Polymer emulsions are deeply cultivated in high-value fields. Low-carbon initiatives include green upgrades, such as acrylic ester green upgrading projects to reduce energy consumption and emissions. Technologies for heat recovery, hydrogen recycling, and CCUS are implemented, saving over 300,000 tons of standard coal annually. These efforts promote the application of low-carbon concepts throughout production, further enhancing product market competitiveness.

C2 Expansion: High-end Growth Engine; Industry Benchmark Under Dual Carbon Goals

Satellite Chemical’s C2 segment centers on ethylene production via ethane cracking, establishing a leading domestic full-industry chain layout. Downstream extends into polyolefins, ethylene oxide derivatives, and high-end new materials. With prominent green and low-carbon advantages and high-barrier high-end layout, it is a core driver for the company’s transformation into a growth-oriented new materials enterprise, complementing the C3 segment and forming a synergistic industrial pattern—key to future growth.

As the source of the C2 industry chain, Satellite Chemical has built Phase I and II ethane cracking units at the Lianyungang base, with an ethylene capacity of 2.5 million tons per year, leading in process and cost advantages. Relying on core ethylene capacity, the C2 segment’s polyolefins include 800,000 tons/year of polyethylene and 400,000 tons/year of polystyrene, with polyethylene being a high-end film benchmark due to its low impurities and high performance. The ethylene oxide derivatives capacity is well-developed, with ethylene glycol and ethylene oxide capacities at 1.82 and 2.19 million tons/year respectively. Market share for polyethers, surfactants, and ethanolamines exceeds 20%, ranking second and first nationwide. Carbonates support new energy material demands. High-end new materials, such as POE elastomers and metallocene polyethylene, are in mass production or preparation stages, with capacities of 600,000 and 350,000 tons/year, and 90,000 tons/year of EAA—the first domestically mass-produced. These precisely target high-end sectors like lithium batteries and high-end packaging.

Green and low-carbon are core competitive advantages for the C2 segment, covering raw materials, production, and products throughout the entire chain. Raw materials use low-carbon ethane cracking, aligning with dual carbon strategies and circular economy needs.

Technological barriers and high-end application scenarios give the C2 segment high growth potential. The company has over 800 patents authorized, with R&D investments exceeding 5 billion yuan in the past three years. Its autonomous ethylene oxide catalysts achieve conversion rates above 99.995%, and POE catalysts reach international levels. Breakthroughs in α-olefins are exclusive domestically, with product added value far exceeding traditional chemicals.

Currently, the C2 and C3 acrylic acid segments form a dual industrial chain with raw material sharing, technology sharing, and market complementarity. While consolidating industry competitiveness, high-end, green capacity layout and technological breakthroughs continue to drive industry upgrades, making Satellite Chemical a typical leader in the transition from traditional chemicals to new materials.

Four Core Advantages Strengthen the Foundation as a Leading Light Hydrocarbon Enterprise

Industry insiders point out that in the highly cost- and supply chain-dependent olefins and acrylic acid sectors, Satellite Chemical’s competitive edge has surpassed mere scale leadership, forming four core advantages: cost, technology, industry chain, and low-carbon footprint. It has become a benchmark for domestic chemical industry “countering involution” and green transformation. Satellite Chemical is the first domestic company to establish a global ethane supply chain, mainly sourcing raw ethane from North America. The company has a joint venture with top U.S. energy firms owning ethane export facilities with priority rights; it also operates 14 ultra-large ethane carriers (VLEC), creating a super logistics fortress, reducing raw material transportation costs by over 15%. North American ethane capacity remains ample and prices are low, further strengthening cost advantages.

The low-carbon nature of the light hydrocarbon route is inherent: producing ethylene from ethane reduces carbon emissions per ton by over 60% compared to naphtha routes and over 80% compared to coal routes, with the lowest emission intensity in the chemical industry, aligning with national “lightweight petrochemical raw materials” carbon peak initiatives. The company has pioneered the full hydrogen energy industry chain, with green hydrogen utilization plans showing initial results. Future plans include creating an integrated “production, storage, transportation, and utilization” hydrogen system, becoming a model for green transformation in the chemical industry.

Hydrogen energy and high-end new materials form a second growth curve

Based on hydrogen produced as a byproduct of light hydrocarbon cracking, Satellite Chemical plans to develop a full hydrogen energy industry chain, becoming a pioneer in integrating chemical and hydrogen industries. The company purifies high-purity hydrogen from ethane and propane cracking via PSA units for external supply, with the Lianyungang base serving enterprises within 300 km, and Pinghu becoming an important green hydrogen supply point in the Yangtze River Delta. Future development includes using hydrogen as raw material for chemicals, forming a “light hydrocarbon cracking—hydrogen utilization—chemical products” industry chain, creating a green, low-carbon production demonstration base, and fully benefiting from hydrogen industry policies under dual carbon goals.

The company will shift R&D and capacity toward high-end new materials, focusing on photovoltaic, lithium batteries, and electronics, with ongoing product upgrades. In photovoltaics, POE pilot products meet standards, with plans for large-scale production to break overseas monopolies on core photovoltaic encapsulation materials; in lithium batteries, 150,000 tons of carbonate capacity supports electrolyte solvents, tightly integrating with the new energy battery industry chain; in fine chemicals, an additional 200,000 tons of specialty acrylic esters are planned by 2026, targeting high-end coatings, adhesives, and daily chemicals, reducing reliance on cyclic general acrylic esters. The company is also developing high-end polyolefins and functional catalysts, continuously expanding high-value markets.

Global expansion presents opportunities, with multiple challenges aiding breakthroughs

Satellite Chemical’s globalization strategy begins with raw material globalization, seizing development opportunities amid global energy restructuring. Currently, the global energy supply chain is being reshaped: many high-cost naphtha-based ethylene capacities in Europe are permanently shut down, while U.S. ethane capacity continues to expand with ample supply, creating global market opportunities for Satellite Chemical’s light hydrocarbon route. About 70% of China’s ethylene capacity still relies on naphtha; amid high crude oil prices, the ethane cracking route offers domestic ethylene industry security as a “ballast.” Its acrylic acid, esters, ethylene glycol, and other products’ competitiveness in global markets is further enhanced, with increasing export potential.

Green chemicals are moving toward becoming a global leader in low-carbon new materials

By 2026, Satellite Chemical will enter a new growth phase, broadening its light hydrocarbon moat, expanding low-carbon new materials, and benefiting from structural industry adjustments in global olefins—improving supply-demand balance, with rising prices for core products. With abundant and low-cost ethane raw materials, the company’s cost advantage will be further highlighted. On the growth front, hydrogen industry chain deployment will be realized, high-end new material capacities will be released, and products like POE will become new performance drivers. The proportion of new materials revenue is expected to increase, smoothing out cyclic fluctuations in traditional olefins.

Long-term, Satellite Chemical’s strategic blueprint is becoming clearer: leveraging C2+C3 dual industry chains for cash flow and raw material security; expanding growth space through high-end new materials; integrating chemical and new energy sectors via green hydrogen; and building a “low-carbon industry system,” transitioning from a domestic light hydrocarbon leader to a global high-tech enterprise in low-carbon new materials.