Shandong Xiantan (SZ:002746) Xin Lang Zheng Quan·2025-08-15 18:27Core Viewpoint - Several companies, including Xiantan Co., are planning significant investments in securities, raising concerns about potential risks associated with diverting funds from core business operations [1][2]. Group 1: Company Investment Plans - At least seven companies have announced plans to invest over 1 billion RMB in securities, with Xiantan Co. planning to use up to 1 billion RMB of its own funds for this purpose [1]. - Xiantan Co. reported a net asset of 4.664 billion RMB at the end of 2024, with the planned investment amounting to approximately 21% of its net assets [1]. - The company’s revenue for 2024 was 5.291 billion RMB, reflecting a year-on-year decline of 8.49%, while net profit decreased by 8.75% to 206 million RMB [1]. Group 2: Financial Performance and Risks - Xiantan Co. experienced a significant drop in operating cash flow, down 52.9% to 155 million RMB, while capital expenditures increased to 586 million RMB, indicating tightening cash flow [1]. - The decision to allocate 1 billion RMB for securities investment amidst declining cash flow raises concerns about the potential strain on the company's core business operations [2]. - Industry experts suggest that the focus on securities investment could lead to insufficient investment in core operations, potentially resulting in increased costs and underperformance in production capacity [2][3]. Group 3: Regulatory and Investor Considerations - There is a call for regulatory measures to limit the proportion of securities investments by listed companies and to ensure transparency in investment logic and risk management [3]. - Companies are encouraged to maintain their core business focus and treat securities investment as a supplementary strategy rather than a primary activity [3]. - Investors are advised to prioritize the long-term competitiveness and sustainability of the company's main business over short-term fluctuations in investment returns [3].