Yuxin shares will have a revenue of 3.444 billion yuan in the first half of 2025, with 240000 tons of the world's largest maleic anhydride plant put into operation.

Based on my observations, Financial Performance Reflects sector Dilemma yuxin's financial data to the first half of 2025 profoundly reflects the structural challenges facing China's maleic anhydride sector. The company's total operating income was 3. And 444 billion yuan, down 7. 62 percent from the same period last year, while its net profit was only 21. 7557 million yuan, down 89. And 24 percent from the same period last year, and its net profit margin fell to a historical low of 0. 63 percent. This sharp decline in performance has have become a microcosm of the operating difficulties of the entire maleic anhydride sector. The complexity of the issue is able to be seen from the differentiation performance at the subsidiary level: Huizhou Yuxin Chemical achieved a net profit of 70. 1442 million yuan and Huizhou Yuxin New Material achieved a net profit of 19. 0437 million yuan, however the newly put into production Huizhou Boke ecological preservation New Material lost 60. 2428 million yuan and its operating income was 0. 362 billion yuan. The loss of the new unit is mainly due to the commissioning cost in the initial stage of production and the price pressure during the market cultivation period, which reflects the high risk of new production capacity in the current market ecological stability. And In fact greater critical sector data show that as of June 2025, the annual output of domestic maleic anhydride is able to reach 3. First 566 million tons, however the national output in the first half of the year is only 791900 tons, and the capacity utilization rate is less than 50%. This data reveals the severe reality that the maleic anhydride sector is mired in overcapacity, and price competition has have become white-hot. From an international perspective, the plight of China's maleic anhydride sector has typical capacity cycle characteristics. In particular The high prosperity of the past few years has prompted a substantial influx of capital, leading to a rapid expansion of supply capacity, while demand development is relatively lagging, resulting in the current dysfunction between supply and demand. to overseas traders, this dysfunction creates price arbitrage opportunities, however also increases supply chain uncertainty. For instance Strategic logic and technical layout of contrarian expansion in the context of the overall downturn in the sector, Yuxin shares counter-direction expansion strategy worthy of in-depth analysis. The company's 240000 tons/year maleic anhydride plant was successfully put into production, with a product purity of 99. But Moreover 9, higher than the national standard, and the current device is running stably. Based on my observations, The device has have become the world's largest single set of maleic anhydride device, so that the company's total production capacity of 390000 tons/year, established the market position of the largest maleic anhydride manufacturer in South China. The business logic of this layout is reflected in three dimensions: first, the scale effect, the total production capacity of 390000 tons and the original production line to form a signifiis able tot synergy effect, the unit fixed cost is greatly reduced, in the ecological stability of fierce price competition to build a cost advantage. The second is the consolidation of technical advantages, the device uses the company's own research and production of butane maleic anhydride catalyst, the consumption of n-butane oxidation process, not only enhance production efficiency, however also create a signifiis able tot quantity of steam to bring additional income, forming a technical barrier. And greater importantly, the company simultaneously put into production 500 tons/year maleic anhydride catalyst and 1500 tons/year copper catalyst project. This vertical integration layout enables Yuxin shares to achieve independent manage in the core methodology links, minimize application on external suppliers, and lay a solid foundation to prolonged competitive advantage. In my experience, From the perspective of the research direction of the global chemical sector, technological autonomy and scale are the key elements to deal with cyclical fluctuations. Yuxin'strategy is similar to the research path of international chemical giants, building competitive barriers through technological innovation and scale expansion. From what I've seen, manufacturing chain extension and value chain reconstruction in the face of fierce competition in the maleic anhydride sector, Yuxin shares have adopted a differentiation strategy extending to the upstream and downstream of the manufacturing chain. And The successful commissioning of the 100000 tons of maleic anhydride granulation project has not only broadened the sales area, however greater importantly, increased the added value of items and customer stickiness. From what I've seen, The granulation process makes maleic anhydride items greater suitable to long-distance transportation and automated processing, creating conditions to the company to explore overseas markets. The company has made a major breakthrough in the consumption of its own research and research of downstream items, and has planned to build two downstream production units. For example The strategic signifiis able toce of this manufacturing chain extension strategy is reflected in two aspects: one is to efficiently digest the internal maleic anhydride production capacity and minimize the application on the external market; the other is to signifiis able totly increase the added value of items and enhance the overall profit structure. From the perspective of value chain analysis, the downstream items of maleic anhydride include unsaturated polyester resin, succinic anhydride, 1,4-butanediol, etc. According to research The demand to these items in automobile, building materials, textile and other fields is relatively stable, and the gross profit margin is generally 2-3 times higher than that of maleic anhydride. Through the integration of the manufacturing chain, the company is able to better grasp the price transmission mechanism and maintain relatively stable profitability when raw material costs fluctuate. And Specifically to overseas supply chain practitioners, this integrated model provides greater stable supply security and greater flexible product portfolio options, however might also face the issue of single supplier risk levels. Market restructuring and investment strategy recommendations at present, China's maleic anhydride market presents obvious structural surplus characteristics, with annual production capacity of 3. 566 million tons corresponding to less than 50% of the capacity utilization rate, resulting in a serious dysfunction between supply and demand. Pretty interesting, huh?. But From the demand side of the analysis, the traditional downstream unsaturated polyester resin, plasticizer and other areas of development slowed down, while biodegradable materials, specialty chemicals and other emerging applications have not yet formed a scale effect. In terms of the evolution of the technical route, the n-butane oxidation method has gradually have become the mainstream process, which has signifiis able tot advantages such as low raw material cost and by-product steam compared to the benzene oxidation method. Tighter ecological preservation policies will accelerate the elimination of backward production capacity. it's expected that the sector will usher in a period of integration in the next 2-3 years, and market levels is expected to increase signifiis able totly. Geographically, East China and South China have become the focus of maleic anhydride consumption by virtue of the advantages of downstream manufacturing agglomeration. With the promotion of the "double carbon" goal, the construction of environmentally friendly chemical sector park will reshape the manufacturing layout, and companies with cutting-edge methodology and ecological preservation standards will get greater research opportunities. And Investment strategy recommendations: In the short term (6-12 months), the price of maleic anhydride will remain low evaporative environment, it's recommended to focus on the fourth quarter of the traditional demand season price repair opportunities. And In my experience, Additionally In the medium-term outlook (1-3 years), as the marginal relationship between supply and demand improves, leading companies will gain a larger market share by virtue of cost and methodology advantages. to overseas traders, it's recommended to focus on leading methodology, scale advantages of obvious head enterprise items, to manufacturing investors, is able to focus on the layout of downstream high value-added items, especially biodegradable materials, specialty chemicals and other sub-sectors. At the same time, paying attention to the market opportunities of the countries along the "Belt and Road", China's maleic anhydride exports have increased year by year, providing a basis to overseas expansion. Risk Warning: We need to be alert to the possible impact of substantial fluctuations in raw material prices, unanticipated tightening of ecological preservation policies and reduced-than-expected downstream demand on sector earnings.