Zhejiang Wansheng (SH:603010) Chang Jiang Shang Bao·2026-01-13 23:36Core Viewpoint - Wansheng Co., Ltd. (603010.SH) is expected to report its first annual loss since its IPO in 2011, with a projected negative net profit for 2025 [1][5][8]. Financial Performance - In the first three quarters of 2025, Wansheng Co. achieved a revenue of 2.484 billion yuan, a year-on-year increase of 16.98%, but the net profit attributable to shareholders was 50.09 million yuan, down 57.85% year-on-year [6]. - The company anticipates a loss exceeding 50 million yuan in the fourth quarter of 2025, indicating a significant decline in profitability [2][7]. Reasons for Loss - The expected loss is attributed to two main factors: 1. Weak terminal demand due to international geopolitical conflicts, inflation in Europe and the U.S., and a sluggish global economy, leading to oversupply and declining gross margins [5][7]. 2. Strategic adjustments in production capacity and product structure, including relocating some production to Thailand to avoid international trade barriers, which has resulted in asset impairment [5][6]. Historical Context - Wansheng Co. has seen a significant decline in net profit over the past three years, with figures of 365 million yuan, 184 million yuan, and 103 million yuan, reflecting decreases of 55.70%, 49.69%, and 43.72% respectively [9]. - The company’s revenue for the years 2022 to 2024 was 3.564 billion yuan, 2.850 billion yuan, and 3.963 billion yuan, showing a decline of 13.38% and 20.03% in the first two years, followed by a slight recovery in 2024 [8][9]. Ownership and Control - In 2021, Wansheng Co. was acquired by Guo Guangchang through Nanjing Steel Group, with a total investment of 2.68 billion yuan for control [3][15]. - As of January 13, 2026, the market capitalization of Wansheng Co. was 6.084 billion yuan, resulting in a paper loss of nearly 900 million yuan for Guo Guangchang, considering his investment and the company's recent performance [4][16]. Market Position - Wansheng Co. specializes in the production and sale of functional fine chemicals, particularly phosphorus-based flame retardants, and has established long-term partnerships with numerous global companies [10].