HUIDA SANITARY WARE(SH:603385) Mei Ri Jing Ji Xin Wen·2025-09-06 02:40Core Viewpoint - The long-established bathroom brand Huida Sanitary Ware (603385.SH) is opting for a "self-mutilation" strategy by divesting its loss-making assets due to continuous losses over its 43-year history [2][3]. Group 1: Asset Disposal Details - Huida Sanitary Ware announced plans to publicly transfer 100% equity and related debts of its subsidiary, Guangxi Xingaosheng Thin Ceramic Co., Ltd. (广西新高盛), which has been consistently losing money [2][3]. - The asset disposal involves selling the equity for 1 yuan and the debts at a 50% discount, raising significant market attention [3][5]. - Guangxi Xingaosheng reported a net loss of 29.31 million yuan for the first half of 2025, with a net asset value of -154 million yuan, and is currently in a state of suspension [3][6]. Group 2: Financial Performance and Market Context - The ceramic industry is under pressure due to a downturn in the real estate market, leading to intensified competition and reduced profit margins [7]. - In 2024, the national ceramic tile production decreased by 12.18%, with a capacity utilization rate of less than 50% [7]. - Huida Sanitary Ware's revenue for the first half of 2025 was 1.425 billion yuan, a year-on-year decline of 9.94%, and net profit dropped by 70.21% to 17.97 million yuan [7][8]. Group 3: Strategic Implications - The company aims to optimize its industrial structure and improve asset operation efficiency through this asset sale [7][8]. - The transaction's success is uncertain, with potential challenges in finding a buyer for the loss-making assets, especially given Guangxi Xingaosheng's debt and operational status [8].