Recently, Luxi Chemical (000830) disclosed its 2025 annual performance forecast, indicating an expected year-on-year decline in the company's full-year operating performance. Both net profit attributable to shareholders and net profit after extraordinary items are projected to show double-digit decreases, significantly impacted by the overall environment of the chemical industry. According to the performance forecast, Luxi Chemical is expected to achieve a net profit attributable to shareholders of RMB 8.5 billion to RMB 11 billion in 2025, representing a decline of 45.78% to 58.1% compared to RMB 20.29 billion in the same period last year. Net profit after extraordinary items is projected to be RMB 6.5 billion to RMB 9 billion, down 54.12% to 66.87% from RMB 19.62 billion in the previous year. Basic earnings per share are expected to be RMB 0.446 to RMB 0.578 per share, a notable decrease from RMB 1.065 per share in the prior year. It is reported that the financial data related to this performance forecast has not yet been audited by an accounting firm. However, the company has engaged in preliminary communication with the signing certified public accountants of the annual report audit accounting firm regarding the forecast matters, and no significant disagreements exist between the two parties. The company cautions that the above performance figures are preliminary estimates, and specific details will be further disclosed in the 2025 annual report. Investors are advised to be mindful of investment risks. Public information indicates that Luxi Chemical's main business covers chemical new materials, basic chemicals, fertilizer products, and other operations, making it one of the key enterprises in China's chemical industry. Regarding the core reasons for the performance changes, the company explicitly stated in the announcement that during the reporting period, influenced by multiple factors such as fluctuations in oil prices and a sluggish chemical product market, downstream demand for the company's chemical products remained weak. Additionally, the year-on-year decline in the prices of major products exceeded the decline in raw material prices, leading to a narrowing of product spreads and ultimately dragging down the company's overall operating performance compared to the previous year. Notably, amid the pressure on performance, Luxi Chemical is optimizing its business layout through resource integration. Previously, the company reached a cooperation agreement with Cangzhou Dahua and Sinochem Plastics Co., Ltd., a wholly-owned subsidiary of Sinochem International. The three parties jointly invested to establish a polycarbonate joint venture to promote synergistic business development. It is understood that the joint venture is tentatively named Sinochem Polycarbonate Sales (Liaocheng) Co., Ltd., with the final name subject to industrial and commercial registration. The registered capital is RMB 5 million, with Luxi Chemical contributing RMB 2.55 million for a 51% stake, Cangzhou Dahua contributing RMB 1.5 million for a 30% stake, and Sinochem Plastics contributing RMB 950,000 for a 19% stake. All three parties invested with their own funds. The joint venture's business scope is proposed to be the sales of engineering plastics and synthetic resins, with its registered address located in the High-tech Industrial Development Zone of Liaocheng City, Shandong Province. Luxi Chemical stated that the core purpose of establishing the joint venture through this tripartite cooperation is to effectively fulfill the commitments of state-owned shareholders regarding competition in the same industry, mitigate the adverse effects of such competition, and efficiently integrate the sales resources of the three parties in the polycarbonate field. This initiative aims to enhance market synergy, reduce operational costs, further improve and strengthen the company's sales industry chain layout, and achieve higher-quality development. It is reported that the ultimate controlling party of Luxi Chemical, Cangzhou Dahua, and Sinochem International (including Sinochem Plastics) is China National Chemical Corporation (ChemChina), a subsidiary of the State-owned Assets Supervision and Administration Commission of the State Council. This joint investment constitutes a connected transaction. The relevant proposals have been reviewed and approved by Luxi Chemical's special meeting of independent directors and the 14th meeting of the ninth board of directors, respectively. Connected directors abstained from voting as required, and the voting results were unanimously in favor. Analysts believe that this joint venture marks a substantive step in the integration of the chemical sector within ChemChina. It is expected to enhance the three parties' market bargaining power in the polycarbonate field, aligning with the direction of optimizing state-owned capital layout and promoting high-quality development of listed companies.