Befar(SH:601678) Zhong Guo Jin Rong Xin Xi Wang·2025-10-30 23:52Core Viewpoint - Binhu Chemical Co., Ltd. is planning to list on the Hong Kong Stock Exchange, facing challenges such as fluctuating gross margins and high debt levels, while transitioning its revenue focus from chlor-alkali chemicals to propylene and butylene chemicals [1][4]. Financial Performance - As of mid-2025, the company's debt-to-asset ratio has risen to 90.8%, with short-term borrowings amounting to 4.889 billion yuan and cash and cash equivalents at only 1.333 billion yuan [1][7]. - Revenue has shown volatility, decreasing from 8.892 billion yuan in 2022 to 7.306 billion yuan in 2023, a year-on-year decline of 17.8%. However, revenue increased by 40% to 10.228 billion yuan in 2024, and continued to grow by 61.4% to 7.354 billion yuan in the first half of 2025 [4][7]. - The company's gross margin has significantly declined from 26.5% in 2022 to 8.4% in the first half of 2025, with chlor-alkali chemicals experiencing a drop from 24.2% in 2022 to 15% in 2024 [4][7]. Business Transition - Binhu Chemical has shifted its revenue structure, with chlor-alkali chemicals accounting for 90.8% of total revenue in 2022, while propylene and butylene chemicals generated 3.487 billion yuan in revenue by mid-2025, representing 47.4% of total revenue [4][7]. - The company is recognized as the largest producer of various chemical products in China, including granular caustic soda and epoxy propane, according to Frost & Sullivan [4]. Shareholder Structure and Dividends - The largest single shareholder is Binzhou Heyi, holding 9.9% of the shares, while other significant shareholders include Zhang Zhongzheng and Yu Jiang with 5.63% and 1.77% respectively [10]. - Since its listing, the company has maintained a consistent dividend policy, distributing a total of 2.358 billion yuan in dividends with an average payout ratio of 27.08% [9].