Core Viewpoint - Major shareholders of Xinde New Materials (301349.SZ) are planning to reduce their holdings, despite the company reporting a significant year-on-year increase in revenue and net profit for the first half of 2025, indicating underlying issues in its core business profitability [1][2]. Financial Performance - In the first half of 2025, Xinde New Materials reported revenue of 510 million yuan, a year-on-year increase of 41.31%, and a net profit attributable to shareholders of 9.81 million yuan, marking a 169.28% increase compared to a loss of 14.16 million yuan in the same period of 2024 [1]. - However, the company's net profit after deducting non-recurring gains and losses was a loss of 3.78 million yuan, indicating that the core business remains unprofitable [2]. Liquidity and Financial Structure - As of June 2025, Xinde New Materials had a high inventory balance of 297 million yuan, a 41% increase from the end of 2024, and accounts receivable of 275 million yuan, a 65% year-on-year increase, which significantly outpaced the revenue growth [2][3]. - The company faced a negative operating cash flow of 166 million yuan in the first half of 2025, indicating ongoing cash flow issues, with previous years also showing negative cash flows [6]. Profitability Challenges - The gross profit margin of Xinde New Materials has declined from 53% in 2020 to 11% in the first half of 2025, reflecting a significant reduction in core profitability [6][8]. - The competitive landscape in the lithium battery materials industry has intensified, leading to price adjustments and overall low profitability levels, which further impacts the company's margins [8]. Market Dynamics - The market for anode materials, particularly artificial graphite, has seen a significant increase in output, with 1-6 months of 2025 showing a 37% year-on-year increase in output, indicating a highly competitive environment [8]. - Xinde New Materials' focus on optimizing product structure and targeting high softening point products aims to stabilize prices, but the current gross margin remains low compared to historical levels [8].
财说丨信德新材股东套现背后，现金流失血与存货高压成隐忧