Flame Retardant Leader Reports Nearly $1 Billion Loss, Plunging 1028.55%

On the afternoon of March 23, Wansheng Co., Ltd., a leading enterprise in the phosphorus-based flame retardant industry, released its 2025 annual performance report.

During the reporting period, the company's revenue reached RMB 3.378 billion, an increase of 13.98% year-over-year, marking a three-year high; however, net loss attributable to shareholders of the listed company exceeded RMB 960 million, a staggering year-over-year decline of 1,028.55%, plunging the company into its largest loss since listing.

Wansheng Co., Ltd. attributed its massive loss to two main factors: first, changes in supply and demand in the flame retardant market led to a decline in per-ton gross profit; second, the company proactively adjusted its production capacity layout by relocating from Weifang, Shandong to Thailand, resulting in a significant asset impairment charge for the Weifang facility. In 2025, the company recorded a long-term asset impairment provision of RMB 9.64 billion, which nearly wiped out its full-year profit.

The Weifang base in Shandong Province is a “severe impairment zone.” To adapt to the competitive landscape and circumvent trade barriers, the company relocated part of its production capacity to Thailand. Affected by multiple factors, the current operating performance of the Weifang base’s production capacity fails to cover its investment scale; thus, asset impairment has been recognized following an impairment test.

The Weifang Base Project was launched in November 2021, commenced construction in February 2022, and is scheduled for additional investment in February 2025; however, the actual commissioning progress has fallen short of expectations, and its capacity utilization rate in 2025 stands at only 8.40%.

In contrast to its lackluster profits, the company’s revenue performed impressively. The primary driver of revenue growth was the full-year consolidation of Guangzhou Entropy New Materials Co., Ltd., acquired in November 2024. Entropy New Materials generated RMB 466 million in revenue and RMB 80.4 million in net profit in 2025.

This is the first annual loss for Wansheng Co., Ltd. since it publicly disclosed its performance in 2011, and its net profit has declined for four consecutive years.

Wansheng Co., Ltd. is a major global producer of organic phosphorus flame retardants, with its products applied in various fields and exported to more than 20 countries and regions.