CAPCHEM(SZ:300037) Xin Lang Cai Jing·2025-12-18 06:29Core Viewpoint - The company, Xinzhou Bang, has decided to issue H-shares and list on the Hong Kong Stock Exchange to address its current complex situation, amid declining profitability and increasing financial pressure. Financial Performance - As of Q3 2025, the company achieved revenue of 6.62 billion yuan, a year-on-year increase of 16.8%, and a net profit attributable to shareholders of 750 million yuan, up 6.6% year-on-year [1] - In Q3 alone, the net profit attributable to shareholders was 264 million yuan, showing a year-on-year decline of 7.5%, indicating a situation of revenue growth without profit increase [1] - The gross margin for Q3 2025 was 23.5%, down 2.2 percentage points year-on-year, while the gross margin for the first three quarters was 24.51%, reflecting a significant decline of 9.52% [1] Business Structure - The company's battery chemicals business, primarily electrolytes, generated revenue of 2.815 billion yuan in the first half of 2025, a year-on-year increase of 22.77%, but with a gross margin of only 9.71%, down 3.94 percentage points year-on-year [1] - In contrast, the organic fluorochemical business, although smaller in revenue at 722 million yuan, had a gross margin of 62.80%, with a year-on-year increase of 0.58 percentage points [1] - The organic fluorochemical business has become the main profit source for the company, with its subsidiary, Haisefu, achieving a net profit of 383 million yuan in the first half of 2025, contributing nearly 80% of the company's net profit [1] Industry Challenges - The decline in profitability is closely linked to the rising costs of lithium carbonate and intense competition within the electrolyte industry [2] - The electrolyte industry experienced its most intense price war in nearly three years during the first half of 2025, with average prices dropping by 9.4% year-on-year to 19,100 yuan per ton [3] - The average gross margin for electrolytes fell to only 374 yuan per ton, a staggering year-on-year decline of 82.7% [3] Financial Pressure - As of Q3 2025, the company's accounts receivable reached 3.007 billion yuan, a year-on-year increase of 27.98%, significantly outpacing the company's revenue growth of 16.75% [4] - The accounts receivable accounted for 319.19% of the net profit, indicating that the company would need over three years of net profit to cover this portion of accounts receivable [4] IPO Strategy - In response to declining profitability and financial pressure, the company has initiated plans for an IPO in Hong Kong, with the board approving the issuance of H-shares not exceeding 15% of the total share capital post-issue [4] - The company aims to enhance its global development strategy, improve its international brand image, and strengthen its competitive position in the global market through this listing [4] Future Outlook - The path to the IPO may be challenging due to investor concerns regarding the company's future profitability amid the ongoing price war in the electrolyte industry [5] - The organic fluorochemical business, previously seen as a growth opportunity, faces market challenges following 3M's exit, while the company's technological reserves in solid-state electrolytes may provide future competitive advantages in the new energy materials sector [5]