Jiangsu Gaoke Petrochemical exits lubricant business, focuses on environmental services

Jiangsu Gaoke Petrochemical completed a major asset restructuring in January 2025, divesting its entire 100% equity in Zhongcheng New Material Technology (Yixing) Co., Ltd., for 457.221 million yuan. This strategic move ends the company's dual-main business model, concentrating operations solely on its environmental protection segment, which primarily involves water treatment, soil remediation, and environmental engineering EPC services. The divestiture is expected to reduce the company's debt, enhance net assets, and alleviate financial pressure, generating 457.221 million yuan in cash proceeds.

Despite the environmental segment experiencing a 12.64% decline in revenue to 63.744 million yuan in the first half of 2025 due to fewer engineering settlement projects, the company achieved a turnaround to profitability, reporting a net profit of 47.009 million yuan compared to a loss of 17.020 million yuan in the same period last year. This positive shift is primarily attributed to significant investment income from the asset disposal. The company plans to continue refining its capital management, controlling operational costs, and actively pursuing new environmental projects to ensure sustainable growth.