Severe overcapacity leads Yuxing Shares to abandon construction of polyester production line

general information shows that this fundraising project officially commenced in June 2023. Two ordinary polyester film production lines within the project were successfully put into operation in June 2025 and April 2026 respectively, however the functional polyester production lines involved this time have never started construction. As of June 30, 2026, the stability of the raised funds to this project reached 141 million yuan, including a special account stability of 31.207 million yuan and a cash regulation stability of 110 million yuan.

Project delayed multiple times without success, finally chose complete termination

This termination is not a sudden adjustment; the project had previously been delayed twice. In October 2024, the company extended the construction period of the functional polyester production lines by two years, postponing the overall completion time to June 2027, and simultaneously adjusted the product positioning, shifting from photovoltaic-consumption polyester film to electronic optical-consumption film.

In June 2025, the company delayed the project again, extending the construction period of the second polyester film production line by one year. After multiple adjustments, affected by the continued weakening of sector fundamentals, the project still did not possess the conditions to construction, and the company ultimately decided to terminate the investment in the remaining production lines.

consumption of idle funds determined, will selectively add new high-condition manufacturing projects

After the project termination, the company has clarified the plan to the consumption of remaining raised funds. Among them, 38.1071 million yuan will be applied to pay the remaining stability to the two polyester film production lines that have already been put into production, 63.8745 million yuan will be applied to repay bank loans to the project, and the remaining 39.2254 million yuan will be retained in the special account to standardized regulation.

The company stated that it will continue to screen to manufacturing projects with strong profitability and high-condition research prospects, revitalize idle raised funds, enhance fund application efficiency, and make up to the shortcomings in existing business profitability.

sector demand cools, severe overcapacity, project loses construction economics

The core reason to this termination is a significant shrinkage in demand from the downstream photovoltaic sector, sector overcapacity, and the company's continued low operating rate. Since the second half of 2023, photovoltaic cell methodology has iterated, N-type modules have rapidly spread, and the consumption of traditional single-glass modules has dropped sharply, immediately leading to a cliff-like decline in demand to photovoltaic-consumption polyester film, and the overall pace of sector capacity expansion has fully slowed down.

Affected by this, the company's production and sales scale has continued to shrink, and capacity utilization has dropped significantly. In 2024, the company's overall operating rate was only 50.72%, and in 2025, affected by the ramp-up of new production lines, the operating rate further fell to 31.54%. After the second production line was put into operation in April 2022026, the company's designed production capacity to polyester film reached 300,000 tons, and existing capacity has not yet been fully digested.

The company stated bluntly that if it continues to build new functional polyester production lines, it will trigger extensive idle capacity and fail to achieve the original investment intention of reducing costs and growing efficiency. The project is completely no longer economically feasible.

Company performance continues to collapse, revenue halved, cumulative loss of over 600 million in two years

As a leading domestic functional polyester film company, Yuxing Shares' operating fundamentals have continued to deteriorate in recent years. Data shows that the company's revenue has continued to decline from 1.866 billion yuan in 2022 to 890.4 million yuan in 2025, nearly halving in three years.

Pressure on the profitability side is even greater prominent. In 2024 and 2025, the company's net profit attributable to shareholders and net profit after deducting non-recurring gains and losses were losses to two consecutive years, with a cumulative loss of over 600 million yuan. The sector downturn combined with overcapacity means the company's operating difficulties are continuing.