A veteran polyester leader spanning 44 years now stands on the brink of delisting. Sanfangxiang received a disclaimer of opinion on its 2025 annual report and an adverse internal control opinion, triggering dual delisting risk warnings, while the controlling shareholder's shares are under judicial auction. This is not just a single company's crisis but a microcosm of the polyester bottle chip industry's overcapacity contradictions.
Overcapacity and Loss Quagmire
From 2023 to 2025, Sanfangxiang posted three consecutive years of losses totaling 1.628 billion yuan. The 2025 loss alone reached 885 million yuan, nearly doubling year-on-year. The direct driver is severe supply-demand mismatch: domestic polyester bottle chip capacity exceeds 20 million tons/year, while demand is only 12 million tons/year, with capacity utilization below 60%.
As the industry's second-largest producer, Sanfangxiang pivoted from textile printing and dyeing to bottle-grade polyester chips and PTA after its 7.35 billion yuan 'snake-swallowing-elephant' acquisition of Hailun Petrochemical in 2020. Profits initially grew, peaking at 818 million yuan in 2022, but then capacity releases compressed product spreads, eroding margins.
More fatal is its narrow supply chain. Sanfangxiang covers only the PTA-to-polyester bottle chip segment, relying heavily on external PX purchases. When upstream PX prices rise, its weak cost control is exposed. In 2025, trading revenue fell 59.97% to 1.713 billion yuan, confirming vulnerability in a single-link chain.
Debt Risks and Governance Crisis
Beyond operating losses, Sanfangxiang faces a chain reaction of overdue guarantees. As of the latest announcement, cumulative overdue debts from guarantees for subsidiaries reached 522 million yuan, accounting for 10.82% of the latest audited net assets. Among them, subsidiary Hailun Petrochemical failed to pay 25.6376 million yuan in rent to Taiping石化 Financial Leasing, with Sanfangxiang providing irrevocable joint liability guarantees.
More concerning is related-party transaction risk. As of end-2025, accounts receivable from related parties stood at 3.561 billion yuan, but only 107 million yuan in bad debt provisions were made. Auditors explicitly stated they could not obtain sufficient evidence for recoverability. The controlling shareholder's shares are under judicial freeze; if disposed, actual control may change. A 600 million yuan related-party guarantee for the controlling shareholder has not been recognized as a liability—these numbers signal huge uncertainty.
Anti-Involution Policies Offer a Lifeline
The industry crisis has drawn policy attention. In H2 2025, relevant national authorities held a symposium with PTA and bottle chip leaders to discuss operations and projects under construction. The meeting was seen as a key step to prevent 'involution-style' competition and stabilize the industry.
Policy effects showed in Q1 2026: Sanfangxiang posted a net profit of 32.7409 million yuan, turning around year-on-year. This year, the Strait of Hormuz blockade led to sharp price rebounds in the polyester chain, improving margins. The stock price also rebounded, temporarily escaping the 1-yuan delisting threshold.
But risks persist. In May 2026, the controlling shareholder's shares were scheduled for public auction, postponed due to execution objections, but the 'Sword of Damocles' remains. On June 26, Lianhe Credit downgraded Sanfangxiang's long-term credit rating to A- with negative outlook, and downgraded its convertible bond rating.