BCC(SZ:002455) Zhong Guo Jing Ying Bao·2025-07-04 07:00Core Viewpoint - The chairman of Baichuan Co., Zheng Tiejiang, is under investigation, causing stock price fluctuations and raising concerns about the company's governance and financial stability [2][3]. Company Situation - Baichuan Co. announced that its actual controller and chairman, Zheng Tiejiang, is being investigated by the Jiangyin Municipal Supervisory Committee, but the company claims that its production and operations remain normal [2][3]. - Zheng Tiejiang and his wife hold a combined 15.54% stake in Baichuan Co., making them the actual controllers of the company [2]. - Following the announcement, Baichuan Co.'s stock price dropped by 5.74% on July 2, closing at 7.06 CNY per share, with a market capitalization of 4.195 billion CNY [2]. Credit Rating and Regulatory Attention - New Century Rating, the credit rating agency for Baichuan Co., is closely monitoring the situation and has noted that the company's management team is still functioning normally and that control has not changed [3]. - Baichuan Co. has previously faced regulatory scrutiny, including a warning from the Shenzhen Stock Exchange in May for discrepancies in its financial reporting [3]. Financial Performance - Baichuan Co.'s financial performance has shown significant volatility, with net profit dropping from 226 million CNY in 2021 to a loss of 466 million CNY in 2023 [3]. - In 2024, the company reported a turnaround with total revenue of 5.556 billion CNY, a year-on-year increase of 35.10%, and a net profit of 109 million CNY, marking a 123.31% increase [4]. - The improvement in 2024 was attributed to rising prices of chemical products and the release of production capacity in Ningxia, leading to an increase in gross margin from 1.78% in 2023 to 10.14% [4]. - In the first quarter of 2025, Baichuan Co. continued its growth trend, achieving revenue of 1.45 billion CNY, a year-on-year increase of 23.07%, and a net profit of 42 million CNY, up 17.88% [4].