Three consecutive years of losses totaling over 1.628 billion yuan, with 2025 losses widening to 885 million yuan—veteran polyester leader *ST Sanfang is on the brink of delisting. Its plight, however, is not an isolated case but a microcosm of the severe capacity glut in the polyester bottle chip industry.
The Price of Overcapacity
Sanfangxiang's loss trajectory closely mirrors the industry's capacity explosion. Between 2023 and 2024, domestic polyester bottle chip capacity surged past 20 million tons annually, while actual demand stood at only 12 million tons—a widening supply-demand gap. As the industry's second-largest player, Sanfangxiang acquired Hailun Chemical for 7.35 billion yuan in 2020, shifting its core business to bottle-grade polyester chips and PTA. Profits initially grew—630 million yuan in 2021 and 818 million yuan in 2022—but then the price war intensified, margins collapsed, and losses began in 2023.
More critically, its industrial chain is dangerously narrow. Sanfangxiang only covers the PTA-to-bottle chip segment, relying entirely on external purchases for its core raw material, PX. This 'both ends outside' structure leaves it extremely vulnerable to upstream price hikes. In 2025, its trading revenue plunged 59.97% year-on-year, a direct reflection of this fragility.
Financial Black Hole and Control Crisis
Beyond operating losses, Sanfangxiang faces a cascading risk from overdue guarantees. As of the latest filing, cumulative overdue debts guaranteed for subsidiaries reached 522 million yuan, or 10.82% of net assets. Its wholly owned unit, Hailun Petrochemical, failed to pay due rents to Taiping石化 Financial Leasing, forcing the company to seek extensions. More alarming: at end-2025, related-party receivables stood at 3.561 billion yuan, with only 107 million yuan in bad-debt provisions—a ratio that led auditors to issue a 'disclaimer of opinion'.
The controlling shareholder's shares have been frozen; if auctioned, control could change hands. A planned May 2026 auction was stayed due to objections, but the uncertainty erodes market confidence. In June 2026, Lianhe Credit Rating downgraded Sanfangxiang's credit rating to A- with a negative outlook, further squeezing its financing options.
Policy Shift as a Turning Point
Sanfangxiang's crisis may find resolution in the very 'involution' that caused it. In late 2025, national authorities held a symposium with leading PTA and bottle chip producers to address 'involution-style' competition. Against a backdrop of severe supply-demand mismatch and thin margins, the meeting was seen as a clear policy signal to curb destructive price wars.
The impact began showing in Q1 2026: Sanfangxiang posted a net profit of 32.74 million yuan, reversing losses. Geopolitical events, such as the Strait of Hormuz blockade, also boosted polyester chain prices and margins. However, this improvement owes more to external factors than to a fundamental upgrade in the company's competitiveness. The industry's shift from 'scale race' to 'quality competition' will require longer-term structural adjustment.