Befar(SH:601678) Sou Hu Cai Jing·2025-10-24 09:21Core Viewpoint - Binhua Co., Ltd. has submitted an application for overseas listing (H-shares) on the Hong Kong Stock Exchange to enhance its global strategy and international brand image [1][4]. Group 1: Company Overview - Binhua Co., Ltd. is located in Binzhou, Shandong Province, and was established in 1968. It was listed on the Shanghai Stock Exchange in February 2010, primarily engaged in the production, processing, and sales of organic and inorganic chemical products, with key products including caustic soda and propylene oxide [4]. Group 2: Financial Performance - The company has experienced a trend of "increased revenue but decreased profit" in recent years. For the first half of 2025, Binhua reported a revenue of 7.35 billion yuan, a year-on-year increase of 61.4%, while the net profit attributable to shareholders was 111 million yuan, up 6.0% year-on-year. However, the net profit after deducting non-recurring items showed a loss of 13.28 million yuan, a decline of 112.6% year-on-year [4]. - From 2021 to 2024, the net profit attributable to shareholders has significantly declined from 1.626 billion yuan to 219 million yuan, marking three consecutive years of substantial decrease. In the first half of 2025, the gross margin was 8.51%, down 4.45 percentage points, and the net margin was 1.51%, down 0.80 percentage points [4]. Group 3: Strategic Initiatives - To address the stagnation in its main business, Binhua is actively seeking new opportunities. On October 1, 2023, the company announced plans to invest approximately 1.421 billion yuan in a new integrated energy storage project in collaboration with its wholly-owned subsidiary, Shandong Binhua New Energy Co., Ltd. [4][5]. - The project will include a 160MW wind farm, a 100MW solar power station, and a 130MW/260MWh energy storage system, with an expected annual net profit of approximately 50.35 million yuan after completion [5]. Group 4: Governance and Tax Matters - Since July 3, 2020, Binhua has been without a controlling shareholder due to the dissolution of a concerted action agreement among its major shareholders, which has lasted over five years. If the Hong Kong listing is successful, the shares of existing shareholders will be further diluted [5]. - The company has also disclosed a tax payment issue, requiring a total of 41.29 million yuan for corporate income tax and late fees, which will reduce the net profit attributable to shareholders for 2025 by approximately 37.2% of its first-half net profit [6].