BCC(SZ:002455) Sou Hu Cai Jing·2025-07-03 09:03Core Viewpoint - The chairman of Baichuan Co., Zheng Tiejiang, is under investigation by the Jiangyin Municipal Supervisory Committee, raising concerns about the company's stability during a critical transition period to the new energy sector [1][3][5]. Financial Performance - In 2024, Baichuan Co. achieved a revenue of 5.556 billion yuan, a year-on-year increase of 35.1%, and a net profit of 109 million yuan, up 123.31% [8]. - The first quarter of 2025 saw revenues of 1.450 billion yuan, a 23.07% increase year-on-year, with a net profit of 42.216 million yuan, up 17.88% [8]. - However, the high growth in 2024 is attributed to a low base effect and a sudden surge in the market for trimellitic anhydride (TMA), raising questions about sustainability [10]. Financial Risks - Baichuan Co. faces significant financial pressure, with a debt-to-asset ratio of 80.22% in 2024, increasing to 81.32% by March 2025 [11]. - As of May 31, 2025, the company had a loan balance of 7.67 billion yuan, with new borrowings of 466 million yuan, representing 20.19% of the audited net assets at the end of 2024 [11]. - The total guarantee balance among the company's subsidiaries reached 5.307 billion yuan, accounting for 267.86% of the latest audited net assets [12]. Business Transition Challenges - Baichuan Co. has been transitioning from a fine chemical leader to the new energy sector since 2016, but this shift has faced significant challenges [13]. - The company holds a 37.95% stake in Haiji New Energy, which has been incurring losses, with losses of 171 million yuan in 2023 and 324 million yuan in 2024 [17]. - The new energy business had a gross margin of -38.69% in 2024, indicating severe operational difficulties [18]. Future Outlook - Despite the challenges, the new energy sector remains promising under the dual carbon goals, but the investigation of the chairman adds uncertainty to the company's future [18].