Double star new materials releases q3 report, bopet leader accelerates breakthrough in high-end materials, can general manager wu di turn losses into profits?

On October 26, 2025, China's leading polyester film company Shuangxing New Materials (stock code: 002585.SZ) officially released its third-quarter financial report. The report shows that the company's revenue for the first three quarters was 3.893 billion yuan, a year-on-year decrease of 10.16%; the net profit attributable to shareholders was -223 million yuan. Although still in a loss-making state, the loss narrowed slightly compared to the same period last year (a year-on-year increase of 2.11%). On a quarterly basis, third-quarter revenue was 1.267 billion yuan, a year-on-year decrease of 15.92% but a quarter-on-quarter increase of 1.81%; the net profit attributable to shareholders was -73 million yuan, a year-on-year decline of 19.03% but a quarter-on-quarter improvement of 31.18%.

Source: Shuangxing New Materials

Overall, from a financial performance perspective, Shuangxing New Materials still faces challenges such as a shrinking revenue scale and negative net profit. However, there are some positive signals: the gross profit margin slightly improved to 0.34%, and the asset-liability ratio decreased from 33.24% at the end of 2024 to 31.08%, indicating some signs of financial structure optimization. Nevertheless, the net cash flow from operating activities was -380 million yuan, a significant decline of 253.9% year-on-year, reflecting ongoing cash flow pressure.

Image source: Youlianyun

1. Industry Environment and Company Financial Performance

Shuangxing New Material mainly focuses on the research and manufacturing of high-performance functional polymer materials. The company's new material business primarily includes "five major sectors": optical materials, new energy materials, energy-saving materials, information materials, and heat-shrinkable materials. It successfully went public in June 2011.

From the financial data, from 2011 to 2016, the company's performance was mediocre, with revenue basically in the 2 billion range and net profit fluctuating around 100 million yuan. Starting in 2017, revenue began to increase significantly, reaching a peak in 2021 with a revenue of 5.931 billion yuan and a net profit attributable to shareholders of 1.385 billion yuan.

In 2023, the company began to incur losses, achieving an operating revenue of approximately 5.289 billion yuan, a year-on-year decrease of 12.74%; the net profit attributable to shareholders was a loss of 168 million yuan. In 2024, Shuangxing New Materials achieved a revenue of 5.908 billion yuan, a year-on-year increase of 11.7%, while the net profit attributable to shareholders was a loss of 398 million yuan, indicating an intensified loss.

Since 2025, the BOPET (Biaxially Oriented Polyethylene Terephthalate) industry has been under pressure. Constrained by sluggish recovery in downstream demand, continuous capacity expansion in the industry, and fluctuations in raw material costs, the price of general-purpose films has shown a volatile downward trend, continuously squeezing the profit margins of companies. According to industry data, by 2024, domestic BOPET capacity had increased to approximately 6.47 million tons, while the operating rate was only about 63%, and the supply-demand imbalance has not been fundamentally alleviated.

In this context, the revenue decline of Double Star New Material is generally consistent with the overall industry trend. However, its third-quarter revenue and net profit both achieved positive growth compared to the previous quarter, particularly with the loss narrowing by over 30% compared to the second quarter, indicating initial signs of stabilization for the company in a counter-cyclical environment. This is partly attributed to the company's strict control over costs and expenses, and partly related to the increase in the proportion of high-end products.

II. Product Structure and Corporate Strategy: Focusing on High-End and Functional Transformation

Shuangxing New Materials was established in 1997 and has long been focused on the research and manufacturing of high-performance functional polymer materials. Its main business covers five major sectors: optical materials, new energy materials, variable information materials, energy-saving window film materials, and heat shrinkable materials. The products are widely used in strategic emerging industries such as AI terminals, new energy vehicles, photovoltaics, and consumer electronics.

Source: Shuangxing New Materials

As one of the few domestic enterprises with full industry chain capabilities from "substrate to film," Shuangxing New Materials has continuously driven its product structure towards high-end and functional adjustments in recent years. Particularly in the field of MLCC (Multi-layer Ceramic Capacitor) release films, the company has become an important force in domestic import substitution.

In the first half of 2025, the sales volume of MLCC release film increased by 118.6% year-on-year, and sales revenue grew by 144.4%. Currently, the company's general-grade release films have been stably supplied to domestic customers such as Micro Container Technology and Sanhuan Group, and have entered the validation or mass supply stages with leading international manufacturers like Murata, Samsung, and Taiyo Yuden. High-smoothness release films have successfully broken the monopoly of Japan and South Korea, achieving mass substitution, and the ultra-high smoothness release films are also being actively promoted.

In addition, the company has made breakthroughs in emerging fields such as carrier copper foil, with its products gaining customer recognition and about to sign a second purchase contract, demonstrating its technical responsiveness in niche markets.

In terms of research and development investment, the company's R&D expenses amounted to 160 million yuan in the first three quarters of 2025, accounting for 4.12% of its revenue. Currently, Shuangxing New Materials has mastered the complete set of process technologies ranging from raw material development, extrusion stretching to magnetron sputtering and electro-ceramic optical carving molds, and has established a research and development system and patent layout, continuously focusing on technological breakthroughs in high-end film materials. As of the first half of 2025, the company has obtained 15 new authorized patents, covering multiple high-tech fields such as optics, new energy, and consumer electronics, and has been selected in the "Top 100 Chinese Light Industry Technology" list.

3. Future Outlook: Challenges Persist, but the Path to High-End Breakthroughs is Clear

Despite the difficulty in quickly resolving the industry's supply-demand imbalance in the short term and the persistent pressure of price competition, the long-term development logic of Shuangxing New Materials remains unchanged.

Firstly, the company's strategic positioning in the high-end materials sector has entered a harvest period. Products such as MLCC release films, high-barrier films, and optical base films are gradually increasing in volume, which will help improve the overall gross profit margin. With the commissioning of new coating equipment and the advancement of international customer certification, high-end products are expected to become the core driving force for performance rebound.

Secondly, the company continues to invest in green transformation and intelligent manufacturing. In July 2025, the company will invest 150 million yuan to launch a digital and green transformation project for the functional polyester film production line. Upon completion, it is expected to add a production capacity of 6,000 tons per year and achieve a 100% green manufacturing process. Combined with the construction of a 5G information-based factory and a distributed photovoltaic full coverage project, the company is expected to further optimize production costs and improve operational efficiency.

Thirdly, the management has completed the transition between the old and new, and the governance structure tends to be stable. On the evening of June 5, Best Star New Material announced that the company had completed the re-election of the board of directors, the board of supervisors, and the management. The actual controller of the company, Wu Peifu, stepped down from the position of general manager, and his son Wu Di officially took over as general manager. Prior to this, Wu Di had accumulated 14 years of experience working as a secretary to the board of a listed company, familiar with capital operations and corporate governance. The market anticipates that the new generation of management will further enhance the company's refined operational capabilities based on strategic continuity.​

But also need to pay attention​The company still faces issues such as cash flow pressure and a 82.89% increase in short-term debt, requiring enhanced cash turnover management. Moreover, if the industry's price war continues, it may hinder the pace of profit recovery.

Shuangxing New Material is currently in a critical phase of transformation. Although the financial report data still appears weak, its technological accumulation in the high-end materials field, breakthroughs with clients, and full industry chain coordination capabilities form an important foundation for medium to long-term recovery.

With the gradual clearing of industry capacity and the continuous release of demand in emerging fields, the company is expected to regain its advantage in the next round of industry recovery through product structure upgrades and management optimization.

Edited by: Lily

Source materials: Public reports from Zhoukou Net, Tongbi Finance, Radar Finance, You Lianyun, Duchaung, and Caizhong Society.