SDHT(SH:600308) Zhong Guo Jing Ying Bao·2025-09-06 03:43Core Viewpoint - Huatai Co., Ltd. reported a decline in revenue and net profit for the first half of 2025, primarily due to intensified industry competition, falling product prices, and rising costs [1][2]. Financial Performance - In the first half of 2025, Huatai achieved revenue of 6.409 billion yuan, a year-on-year decrease of 1.86%. The net profit attributable to shareholders was approximately 68 million yuan, down 63.13% year-on-year [1][2]. - In Q2 2025, revenue increased by 7.3% to 3.32 billion yuan, but net profit dropped to 7.81 million yuan, a decline of 88.9%. The non-recurring net profit was a loss of 3.65 million yuan, down 106.0% [2]. - The net profit has been declining for three consecutive years, with figures of 427 million yuan, 237 million yuan, and 36 million yuan for 2022, 2023, and 2024 respectively [2]. Industry Challenges - The domestic paper industry is facing dual pressures of demand contraction and supply surplus, leading to significant price drops for key products like newsprint and cultural paper [2][3]. - The cost of wood pulp and chemical auxiliary materials has only slightly decreased, resulting in a decline in paper product gross margins [2]. Strategic Initiatives - To address performance challenges, Huatai is advancing an integrated industrial layout to enhance risk resistance [3]. - The newly established 700,000-ton chemical pulp project commenced production in July 2025, with expectations of gradually reducing costs in the second half of the year [1][3]. - The company is also launching a 300,000-ton specialty "pulp-paper integration" project in October 2024, which includes new production lines for high-yield wood fiber and high permeability paper [4]. Competitive Positioning - The integrated layout aims to improve cost advantages and strengthen bargaining power over upstream pulp suppliers, while maintaining a large inventory of low-cost pulp to mitigate the impact of raw material price increases [4].