A veteran polyester enterprise founded in 1980 now stands on the brink of delisting. Sanfangxiang received a 'disclaimer of opinion' and 'internal control adverse opinion' for its 2025 annual report, and its controlling shareholder's shares are subject to judicial auction. This once prominent polyester leader is undergoing its most severe test in over four decades, reflecting the brutal reality of severe overcapacity and squeezed profits in the PET bottle chip industry.
Profit Evaporation Under Capacity Flood
Industry supply-demand imbalance is the core reason for Sanfangxiang's collapse. According to industry public data, from 2023 to 2024, domestic PET bottle chip capacity was intensively released, exceeding 20 million tons per year, while downstream demand was only 12 million tons. This means over 8 million tons of capacity is idle or inefficient, continuously compressing product spreads to near cost levels.
Sanfangxiang's financial data directly reflects this impact. The company achieved a profit of 630 million yuan in 2021 and 818 million yuan in 2022, but then suffered three consecutive years of losses, with cumulative losses reaching 1.628 billion yuan. In 2024, losses were 487 million yuan, expanding to 885 million yuan in 2025. As the second-largest player in the industry, its large-scale capacity expansion failed to bring expected returns, instead dragging it into a quagmire of overcapacity.
More notably, Sanfangxiang's industrial chain layout has obvious weaknesses. It only covers the PTA to PET bottle chip segment, with core raw material PX heavily dependent on external purchases. This single structure can sustain during industry boom cycles, but once upstream prices rise, the weakness in cost control is exposed. In 2025, the company's trading business revenue dropped 59.97% year-on-year, a direct reflection of its fragile supply chain.
Debt Chain and Audit Warnings
Beyond losses, guarantee defaults have become another 'time bomb.' As of the latest announcement, Sanfangxiang's cumulative overdue debts for guarantees provided to subsidiaries and inter-subsidiary guarantees reached 522 million yuan, accounting for 10.82% of the latest audited net assets. Its wholly-owned subsidiary Hailun Petrochemical failed to pay due rent for financial leasing, and the company, as guarantor, had to 'actively communicate with creditors and seek renewal or extension.'
Audit warnings are equally alarming. By the end of 2025, the company's accounts receivable from related parties reached 3.561 billion yuan, but only 107 million yuan in bad debt provisions were made. Auditors explicitly stated they could not obtain sufficient and appropriate audit evidence for the recoverable amount of these receivables. The controlling shareholder's shares have been judicially frozen, and if subsequent disposal occurs, it could lead to a change in actual control. Lianhe Credit Rating has downgraded the company's long-term credit rating to A- with a negative outlook.
Anti-Involution Policy Brings a Turning Point
Industry crisis has drawn national attention. In the second half of 2025, relevant government departments held symposiums with leading PTA and bottle chip enterprises to discuss industry operations and project progress. Amid supply-demand mismatch and thin profits, these meetings are seen as important measures to prevent and resolve 'involution-style' competition and promote stable industry operation.
Policy effects are already visible. In the first quarter of 2026, Sanfangxiang achieved a net profit of 32.74 million yuan, turning around from losses. Additionally, the Strait of Hormuz blockade led to price rebounds in the polyester chain, temporarily improving margins. The company's stock price has also bounced back from the 1 yuan delisting threshold.
But the crisis is far from over. Although the controlling shareholder's share auction has been postponed due to execution objections, the 'sword of Damocles' remains. A 600 million yuan related-party guarantee has not been recognized as a provision, and 3.561 billion yuan in receivables face recovery uncertainty—these numbers represent huge risks.
Survival Rules Amid Industry Shakeout
Sanfangxiang's plight is not an isolated case. Overcapacity in the PET bottle chip industry has persisted for years, with leading players all entering the PTA segment, intensifying integration competition. Companies with single links and heavy reliance on external raw materials will be the first to exit in price wars.
For the industry, anti-involution policies offer a breathing window, but the fundamental solution lies in capacity clearance and differentiated competition. The Q1 2026 turnaround was more a result of external environment improvement than internal competitiveness enhancement. If capacity exit mechanisms are not improved, price rebounds may trigger another expansion round, creating a new vicious cycle.