Sanyuan Biotechnology(SZ:301206) Hua Xia Shi Bao·2025-08-09 10:44Core Viewpoint - The recent announcement by Sanyuan Biological regarding the lifting of restrictions on a significant portion of its shares has raised concerns among investors, particularly in light of the company's operational challenges and reliance on international markets [2][3][6]. Group 1: Share Unlocking and Market Impact - Sanyuan Biological will unlock 92.946 million shares, accounting for 45.94% of its total share capital, on August 11, with 22.672 million shares available for trading [2][3]. - The company is facing additional market pressure as other shareholders, such as Luxin Capital, plan to reduce their holdings by up to 6 million shares [3]. - The unlocking of shares is expected to increase the total supply in the market, potentially leading to short-term stock price volatility, especially for companies with weaker fundamentals [5]. Group 2: Financial Performance and Challenges - Sanyuan Biological has experienced fluctuating performance, with revenues of 675 million yuan, 500 million yuan, and 713 million yuan from 2022 to 2024, and net profits of 164 million yuan, 56 million yuan, and 105 million yuan during the same period [5][6]. - The company heavily relies on international markets, with 70.70% of its main business revenue coming from exports in 2024 [6]. - The U.S. Department of Commerce has imposed a preliminary anti-dumping duty of 450.64% on Sanyuan Biological, which is expected to impact its sales in the U.S. market [6]. Group 3: Product Structure and Market Conditions - Sanyuan Biological's product structure is relatively singular, with erythritol revenue constituting 72.30% of total revenue in 2024 [7]. - The company acknowledges that fluctuations in the erythritol market or failures in new product development could adversely affect its performance [7]. - The erythritol market has seen significant price declines, with prices dropping from a peak of 40,000 yuan/ton in 2021 to as low as 9,500 yuan/ton in the first half of 2023, leading to reduced production and market exits by some companies [7]. Group 4: Strategic Responses - In response to market pressures, Sanyuan Biological has initiated a share buyback program, aiming to repurchase shares worth between 50 million and 100 million yuan [4]. - As the company navigates internal and external pressures, its ability to adapt and achieve sustainable growth remains to be seen [8].