Huasu Co. disclosed its earnings forecast, projecting a net loss attributable to shareholders of 65 million to 85 million yuan for the first half of 2026, compared with a loss of 129 million yuan in the same period last year. The net loss after deducting non-recurring items is expected to be 70 million to 90 million yuan, versus a loss of 142 million yuan a year earlier. The company said the narrower year-on-year loss was mainly due to lower raw material costs such as coke breeze and cost-reduction and efficiency measures, which reduced production costs for PVC and caustic soda. This was coupled with a modest recovery in PVC prices and higher revenue, narrowing the loss in the PVC business, while the caustic soda business maintained positive profitability. However, overall weak supply and demand in the chlor-alkali industry and sluggish downstream property demand kept PVC prices persistently low, with selling prices below costs resulting in losses. At the same time, increased supply of caustic soda and falling prices squeezed profitability, and the gross profit from caustic soda could not fully cover the PVC losses, leaving the company still in the red overall.
Anhui Hwasu Co.Ltd.Overall weak supply and demand in chlor-alkali industry and increased caustic soda supply squeezing profitability, despite narrower loss.