XACIG(SH:600596) Xin Lang Cai Jing·2025-08-28 23:12Core Viewpoint - New An Co., Ltd. is facing its most severe test since its listing due to industry-wide overcapacity and declining prices in the silicon-based new materials sector, leading to significant financial losses and a negative net profit for its main business [1][15]. Company Performance - In the first half of 2025, New An Co. reported total revenue of 8.058 billion yuan, a year-on-year decrease of 5.07%, and a net profit attributable to shareholders of 69.0734 million yuan, down 47.71% year-on-year [1]. - The company's non-recurring net profit was -23.9177 million yuan, a staggering year-on-year drop of 197.73%, indicating that its main business is in a loss-making state [1]. - The company has relied heavily on government subsidies (64.39 million yuan) and non-current asset disposals (51.77 million yuan) to support its profits [1]. Industry Context - New An Co. operates in two main business segments: crop protection and silicon-based new materials, with the latter being the focus of market attention and previously driving high valuations [2]. - The company has a total organic silicon monomer production capacity of 500,000 tons per year, with approximately 80% used for self-produced downstream products [2]. Market Challenges - The organic silicon intermediate DMC market price has significantly declined, with domestic total capacity reaching 3.2 million tons by the end of 2024, leading to a supply-demand imbalance despite a compound annual growth rate of 10.7% in consumption from 2017 to 2024 [3]. - The price of industrial silicon has plummeted, with the average price dropping from 15,900 yuan per ton at the end of 2023 to 9,350 yuan per ton by mid-2025, representing a 23% decline [3][5]. Financial Strain - New An Co. has recognized asset impairment provisions totaling 83.93 million yuan in the first half of 2025, with inventory impairment losses reaching 68.54 million yuan [5]. - The company's accounts receivable balance was 2.157 billion yuan, a year-on-year increase of 7.68%, indicating significant pressure on cash flow management [6]. - The company's cash flow from operating and investing activities has been negative, with net cash flows of -1.72 billion yuan in the first half of 2025 [7]. Debt and Liquidity Concerns - Although the asset-liability ratio has decreased slightly, the company's non-current liabilities due within one year have surged by 171% to 529 million yuan, indicating increased repayment pressure [10]. - The current and quick ratios are approaching critical levels, with the current ratio at 1.33 and the quick ratio at 0.97 [10]. Project Delays - New An Co. has postponed its key project, the organic silicon synthesis project, from September 2025 to March 2026 due to changes in macroeconomic conditions and intensified market competition [14]. - The company is facing a broader industry challenge of overcapacity and declining prices, leading many firms to slow down investment to avoid losses [14][15]. Overall Industry Outlook - The challenges faced by New An Co. reflect structural issues within the organic silicon industry, where rapid capacity expansion is not matched by demand growth, leading to intense price competition and compressed profit margins [15]. - The company's ongoing plans to expand industrial silicon capacity may pose further risks in a declining price environment [15].