BIO-CHEM(SH:603360) Chang Jiang Shang Bao·2025-12-01 01:08Core Viewpoint - Baiao Chemical is undergoing a significant transformation by binding key personnel through equity transfer, aiming to enhance its integration with the semiconductor business and drive long-term growth [1][5]. Equity Transfer Details - On November 26, Baiao Chemical announced that its two major shareholders plan to transfer a total of 10% equity to Liu Hongjun [2]. - After the transaction, Liu Hongjun will become a significant shareholder with over 5% ownership and will be appointed as a director and co-general manager of Baiao Chemical [3][5]. - The total transaction amount is approximately 1.986 billion yuan, with a share price of 28.12 yuan, representing an 11% discount compared to the closing price of 31.72 yuan on November 25 [4]. Business Transformation - Baiao Chemical has been a leader in the industrial biocide sector for over 20 years, but it has faced growth challenges in recent years [3][7]. - In 2024, the company began its cross-industry transformation by investing 700 million yuan to gain control of Suzhou Xinhuilian Semiconductor Technology Co., Ltd., marking its entry into the semiconductor field [3][8]. - The company aims to create a dual business model of chemicals and semiconductors, with Liu Hongjun playing a crucial role in this transition [7][9]. Financial Performance - Baiao Chemical's revenue from 2021 to 2024 showed fluctuations, with revenues of 1.006 billion yuan, 1.257 billion yuan, 1.066 billion yuan, and 1.312 billion yuan, while net profits were 250 million yuan, 403 million yuan, 328 million yuan, and 345 million yuan respectively [7]. - In the first three quarters of 2025, the company reported revenues of 1.056 billion yuan and a net profit of 125 million yuan, reflecting a year-on-year change of 17.88% and -50.83% respectively [7]. Semiconductor Business Outlook - Xinhuilian, established in 2019, focuses on semiconductor equipment and achieved revenues of 543 million yuan in 2024, a 215.75% increase, with a net profit of 97 million yuan, a 370.82% increase [8][9]. - Liu Hongjun has committed to achieving a minimum net profit of 1 billion yuan, 1.5 billion yuan, and 2.5 billion yuan for Xinhuilian from 2024 to 2026, totaling at least 5 billion yuan [9].