SPM(SH:600459) Tai Mei Ti A P P·2025-09-24 11:13Core Viewpoint - Guiyan Platinum Industry (600459.SH) plans to raise up to 1.291 billion yuan through a private placement of A-shares to fund technological innovation, industrial transformation, and working capital, despite facing challenges with profit growth and increasing debt levels [2][3][5]. Group 1: Business Strategy and Expansion - The company is focused on building a closed-loop industrial chain around three core areas: precious metal new material manufacturing, resource development and recycling, and supply services [3]. - The funds raised will be allocated to seven projects, including a 400 million yuan investment in a national key laboratory for precious metal functional materials and 84 million yuan for an AI laboratory for new materials [3][4]. - The necessity for expansion is driven by the rapid growth of emerging industries and supportive government policies for new material development [3][4]. Group 2: Financial Performance and Debt Levels - As of mid-2025, the company's total assets reached 19.795 billion yuan, a 36.10% increase from the beginning of the year, with liabilities amounting to 12 billion yuan and a debt-to-asset ratio of 61.01%, up 13.75% year-on-year [5]. - Short-term borrowings surged by 178.11% to 3.318 billion yuan, primarily to support the expanded production scale [5][6]. - The company has a history of relying on financing, with previous fundraising efforts totaling nearly 4.2 billion yuan, often used for debt repayment and working capital [5][6]. Group 3: Profitability Challenges - Despite a 20.91% increase in revenue to 29.554 billion yuan in the first half of 2025, net profit only grew by 2.30% to 325 million yuan, indicating a significant disparity between revenue growth and profit [8]. - The company's net profit margin declined from 1.3% to 1.1%, placing it at the bottom of the industry, while gross margin fell to 2.19%, down from 3.5% in previous periods [8][9]. - The low profitability is attributed to the low-margin nature of the precious metal processing industry and the company's heavy asset model, which incurs high upfront costs [8][9]. Group 4: Inventory and Cash Flow Concerns - The company's inventory skyrocketed by 70.67% to 7.391 billion yuan, constituting 37.34% of total assets, raising concerns about potential devaluation risks and cash flow pressures [9][10]. - Inventory turnover rates have been declining, indicating weakening inventory management, with the latest rate at 4.93 [10]. - The improvement in cash flow is not due to enhanced profitability but rather through aggressive collection efforts and extended payment terms, highlighting ongoing challenges in cash generation [9].