Shandong Lubei Chemical Co Ltd

The Shanghai Stock Exchange has issued an inquiry letter regarding Lubei Chemical's 2025 annual report, focusing on issues such as the low gross margin of its overseas business. The company's 2025 revenue was 5.089 billion yuan, with overseas sales revenue of 1.488 billion yuan. The overseas sales gross margin was only 1.20 percent, far lower than the domestic figure of 8.25 percent. Of the overseas revenue, 95.84 percent came from titanium dioxide, where the export gross margin was a mere 0.01 percent. The company responded that product mix differences are the core reason for the margin divergence. The weak profitability of overseas titanium dioxide stems from the bottom of the industry cycle, compounded by anti-dumping duties imposed by the European Union, India, and Brazil on Chinese exports. Most exports use CIF terms, with the company bearing sea freight costs, and titanium dioxide is not eligible for export tax rebates. There is a 202 million yuan discrepancy between the book value of export sales and original customs data, but after adjustments the overall variance rate is only 0.6 percent. The top ten overseas customers are all unrelated third parties, and the corresponding accounts receivable have been fully collected after the period. The export gross margin for methane chlorides was 28.74 percent, higher than the domestic level. Trading business revenue fell from 34.86 million yuan to 8.1 million yuan. Coal trading is accounted for using the net method; on a gross restated basis, 2025 revenue was 465 million yuan with a gross margin of 0.92 percent. The revenue decline was due to reduced self-use procurement demand from related parties.