A veteran polyester company that started in 1980 is now on the verge of delisting. With three consecutive years of cumulative losses exceeding 1.6 billion yuan, an 'adverse opinion' on its 2025 annual report, and controlling shareholder shares being auctioned, Sanfangxiang's plight is not an isolated case. It is a concentrated eruption of the capacity bubble and structural fragility in the entire polyester bottle chip industry.
The Price of Overcapacity
Industry data shows that from 2023 to 2024, domestic polyester bottle chip capacity surged past 20 million tons per year, while downstream demand stood at only about 12 million tons, creating a supply-demand gap of nearly 8 million tons. This severe mismatch has persistently compressed product spreads, squeezing industry profits to the limit. As the second-largest manufacturer, Sanfangxiang's aggressive expansion strategy backfired in this oversupplied environment. Losses widened from 487 million yuan in 2024 to 885 million yuan in 2025, nearly doubling year-on-year.
A deeper issue lies in the company's single-chain business model. Its core operations only cover the PTA-to-polyester bottle chip segment, with its key raw material, PX, entirely dependent on external purchases. Once upstream PX prices fluctuate, the company's cost control capability becomes virtually nonexistent. In 2025, its trading business revenue plummeted 59.97% year-on-year, a direct reflection of this structural vulnerability.
Debt Mines and Governance Black Holes
Beyond operational losses, Sanfangxiang faces a chain reaction of guarantee defaults. As of the latest announcement, the cumulative overdue debt for guarantees provided by the company for its subsidiaries has reached 522 million yuan, accounting for 10.82% of the most recent audited net assets. Specifically, its wholly-owned subsidiary Hailun Petrochemical failed to make payments on a financial lease, triggering the parent company's joint liability as guarantor.
More concerning is the uncertainty at the governance level. As of the end of fiscal 2025, the company's accounts receivable from related parties stood at a staggering 3.561 billion yuan, but the accumulated bad debt provision was only 107 million yuan. Auditors explicitly stated they could not obtain sufficient, appropriate audit evidence for the recoverability of these amounts. The controlling shareholder's shares have been judicially frozen; if disposed of, it could lead to a change in actual control. A 600 million yuan related-party guarantee provided by the company for its controlling shareholder has not been recognized as a provision, pointing to a massive financial black hole.
State Intervention and Industry Turnaround
The root of Sanfangxiang's crisis is industry 'involution,' and anti-involution policies may offer a glimmer of hope. In the second half of 2025, relevant state authorities convened a symposium with leading PTA and bottle chip companies to discuss industry operations and projects under construction. Against a backdrop of supply-demand mismatch and thin margins, the meeting was widely seen as a key step to prevent vicious competition and stabilize the industry.
The effects of policy intervention are already visible. In the first quarter of 2026, Sanfangxiang achieved a net profit of 32.74 million yuan, turning profitable year-on-year. Simultaneously, geopolitical factors like the Strait of Hormuz blockade have driven a significant rebound in polyester chain product prices, improving industry margins. The company's stock price has also rebounded, temporarily moving away from the 1-yuan delisting threshold.
However, rating agencies remain cautious. On June 26, 2026, Lianhe Ratings downgraded Sanfangxiang's long-term credit rating to A- with a negative outlook, and downgraded its convertible bonds to A-. While the auction of controlling shareholder shares has been temporarily stayed due to an execution objection, the 'Sword of Damocles' remains.