Suli Co., Ltd.(SH:603585) Zheng Quan Zhi Xing·2025-06-23 16:31Core Viewpoint - The company, Jiangsu Suli Fine Chemical Co., Ltd., is facing challenges in the agricultural chemical sector due to declining product prices and increased depreciation costs from ongoing construction projects, leading to a projected net loss in 2024 [4][10]. Financial Performance - The company's revenue for 2022, 2023, and 2024 was 3.15 billion, 1.96 billion, and 2.31 billion yuan respectively, with a significant increase in sales volume attributed to capacity release and overseas market expansion [10]. - The gross profit margin decreased from 22.32% in 2022 to 12.20% in 2024, reflecting the impact of falling sales prices [10]. - As of March 2025, the company reported a total asset value of 4.68 billion yuan and total liabilities of 2.23 billion yuan, resulting in an asset-liability ratio of approximately 47.6% [2]. Industry Overview - The agricultural chemical industry is experiencing a downturn, with the pesticide price index dropping by 10.4% year-on-year as of December 2024, affecting the profitability of companies in this sector [6]. - The production of chemical pesticide raw materials in China saw a significant increase, with outputs of 3.675 million tons in 2024, up 22.2% year-on-year [5]. - The global flame retardant market is projected to grow from 10.38 billion USD in 2024 to 16.96 billion USD by 2033, with a compound annual growth rate of 5.56% [8]. Operational Insights - The company has a diversified product line, including pesticides and flame retardants, with a focus on maintaining a stable supply chain and production efficiency [10]. - The production capacity for pesticide and intermediate products increased significantly, with a capacity utilization rate of 90.15% in 2024 [10]. - The company’s sales strategy includes direct sales and distribution, with a notable increase in export sales, which accounted for 39.07% of total sales [10]. Future Outlook - The company is expected to maintain a stable credit quality in the coming months, despite the challenges posed by the agricultural chemical market [2]. - The ongoing construction projects and their operational effectiveness will be critical for the company's future profitability and financial health [4][10].