CXPC(SH:600078) Sou Hu Cai Jing·2025-10-23 01:37Core Viewpoint - The recent yellow phosphorus self-ignition incident at Chengxing Co., a leading domestic phosphorus chemical company, has raised concerns about the company's safety management practices, especially following its recent financial recovery [2][6][12]. Company Overview - Chengxing Co. has a complete industrial chain involving mining, yellow phosphorus, phosphoric acid, and phosphate salts, with products widely used in various sectors including industry, food, medicine, and electronics [12]. - The company operates two fine phosphorus chemical processing bases in Jiangyin, Jiangsu, and Qinzhou, Guangxi, with a thermal phosphoric acid production capacity of 600,000 tons and fine phosphate production capacity of 95,000 tons [13]. - Chengxing Co. also has two raw material production bases in Qujing and Honghe, Yunnan, with a yellow phosphorus production capacity of 160,000 tons [14]. Recent Financial Performance - In the first half of the year, Chengxing Co. achieved revenue of 1.776 billion yuan, a year-on-year increase of 9.85%, and a net profit attributable to shareholders of 19 million yuan, a significant turnaround with a year-on-year growth of 211.08% [6][25]. - The company reported a gross margin of 9.09% and a debt-to-asset ratio of 61.14% as of the end of the first half of the year [24][25]. Incident Details - On October 20, a yellow phosphorus self-ignition incident occurred at Chengxing Co.'s Jiangyin plant, leading to a temporary shutdown of operations [2][6][11]. - The incident was reported to have started from a small leak from a tank truck carrying yellow phosphorus, with no casualties but raising concerns among local residents due to the smoke and odor [9][10]. - Notably, a "Risk Commitment Notice" was displayed at the plant just hours before the incident, claiming all safety measures were in place, which has led to skepticism regarding the company's safety protocols [10][12]. Management and Control Changes - The company is currently under the control of Li Xingxing, son of Geely Group founder Li Shufu, who took over as chairman in November 2022 [5][20]. - Since Li Xingxing's takeover, the company has faced financial challenges, recording losses in 2023 and 2024, with net profits of -61 million yuan and -199 million yuan respectively [24]. Future Developments - Chengxing Co. plans to relocate its Jiangyin plant and has initiated a project in the Jiangyin Lingang Chemical Park to enhance production efficiency and product competitiveness [11][25]. - The company aims to leverage its new project to explore growth opportunities in high-end new materials and domestic market replacements [25].