Zhongtai Chemical(SZ:002092) Chang Jiang Shang Bao·2025-12-19 00:16Core Viewpoint - Zhongtai Chemical plans to repurchase a 15.173% stake in its subsidiary, Xinjiang Huatai Heavy Chemical Co., for 1.2 billion yuan, which will increase its financial pressure despite being a contractual obligation [1][2][5]. Financial Condition - As of September 2025, Zhongtai Chemical's asset-liability ratio stands at 64.71%, with monetary funds of 6.829 billion yuan against interest-bearing liabilities of 24.935 billion yuan, indicating significant debt repayment pressure [6][7]. - The company has reported continuous losses since 2023, with a net profit of -1.79 billion yuan in the first three quarters of 2025, showing no signs of profitability [1][8]. Operational Performance - Zhongtai Chemical's revenue has been declining, with a reported revenue of 37.118 billion yuan in 2023, down 28.15% year-on-year, and a net profit loss of -28.65 billion yuan, a staggering 469.07% decrease [8][9]. - The company's operating cash flow has also significantly decreased, with a net cash flow of 1.394 billion yuan in the first three quarters of 2025, down 67.15% from the previous year [9]. Asset Quality - Huatai Company, the subsidiary being repurchased, is considered a quality asset with a lower asset-liability ratio, having total assets of 11.389 billion yuan and net assets of 8.270 billion yuan as of the end of 2024 [3][4]. - The subsidiary has shown profitability, with revenues of 4.568 billion yuan and net profits of 1 billion yuan in 2024, indicating its importance to Zhongtai Chemical's overall financial health [9]. Future Outlook - The company is under scrutiny regarding when it will emerge from its current financial difficulties, as it has not yet reached a turning point [10].