DKEM(SZ:300842) Xin Lang Cai Jing·2026-01-22 09:04Core Viewpoint - Dike Co., Ltd. is expected to report a net loss of approximately 200-300 million yuan for the year 2025, marking its second annual loss in nearly a decade, primarily due to non-recurring losses related to silver price fluctuations and hedging activities [1][14]. Financial Performance - The last loss recorded by Dike Co. was in 2022, amounting to 12.18 million yuan, mainly due to foreign exchange losses from imported silver powder [1][14]. - The anticipated loss for 2025 is largely attributed to significant fair value losses from silver futures and leasing operations, driven by a sharp increase in silver prices [1][14]. - Excluding non-recurring losses, the adjusted net profit for Dike Co. is projected to be between 160-240 million yuan, indicating profitability despite the overall loss [3][16]. Market Conditions - Silver prices have surged significantly, with a notable increase from 11,697 yuan/kg to 23,228 yuan/kg within two months, reflecting a doubling in value [4][17]. - The rise in silver prices is influenced by both financial market dynamics and industrial demand, particularly in the photovoltaic and renewable energy sectors [4][17]. Risk Management and Comparison - Dike Co. has faced challenges in its hedging strategies, with a reported fair value loss of 1.37 billion yuan in Q3 2025, which is substantially higher than previous quarters [6][19]. - Comparatively, another leading silver paste company, Juhe Materials, reported lower losses, raising questions about Dike Co.'s hedging management and timing capabilities [7][20]. Inventory and Future Outlook - The increase in silver prices has led to a rise in the actual value of Dike Co.'s inventory, although accounting principles prevent the recognition of this increase until realized through sales [8][20]. - The company is focusing on transitioning its product structure, particularly through the development of high-copper paste materials, which are expected to be commercially viable by 2026 [9][23]. Acquisition Strategy - Dike Co. has engaged in a series of acquisitions in 2025, including a 60% stake in Zhejiang Suote for 669 million yuan and an 80% stake in Zhejiang Jinko New Materials for 80 million yuan, with significant premiums on these transactions [11][25][26]. - These acquisitions have increased the company's goodwill from 33 million yuan to 504 million yuan, raising concerns about potential goodwill impairment and financial pressure [27].