HUIDA SANITARY WARE(SH:603385) Sou Hu Cai Jing·2025-09-29 09:18Core Viewpoint - Huida Sanitary Ware's asset disposal plan has faced setbacks, as the company failed to attract interested buyers for the 100% equity and debt transfer of Guangxi Xingaosheng Thin Ceramic Tile Co., Ltd. at a base price of 144 million yuan [1][3]. Company Summary - The asset sale was initiated with a controversial pricing strategy, offering the 100% equity of Guangxi Xingaosheng for 1 yuan, while the total debt of approximately 269 million yuan was set at a base price of 144 million yuan, representing 53.6% of the total debt [3]. - Guangxi Xingaosheng, a high-tech enterprise specializing in ceramic thin slate products, has been continuously losing money and is currently insolvent, with a net loss of 34.886 million yuan in 2024 and an additional loss of 29.3084 million yuan in the first half of 2025 [3]. - As of June 30, 2025, Guangxi Xingaosheng's net assets were reported at -154 million yuan and the company is currently in a state of suspension [3][6]. - Huida Sanitary Ware aims to adjust and optimize its industrial structure through this transaction, and if completed, Guangxi Xingaosheng will no longer be included in the company's consolidated financial statements [3]. Industry Summary - The failure of the asset disposal is closely related to the severe challenges facing the entire ceramic industry, with a reported 12.18% year-on-year decline in national ceramic tile production in 2024 and a capacity utilization rate of less than 50%, indicating a serious overcapacity issue [5]. - Huida Sanitary Ware's half-year report for 2025 reflects the industry's difficulties, showing a 9.94% year-on-year decline in revenue and a 70.21% drop in net profit attributable to the parent company, primarily due to decreased income from the tile/slate segment and asset impairment [6]. - The ongoing downturn in the real estate market and overall pressure on the building materials industry make Huida Sanitary Ware's divestiture of loss-making assets a critical move to focus on its core business and mitigate losses [8].