The PBAT integrated project, in which Tongde Chemical has invested over 3 billion yuan, has been put on hold

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On April 28, Tongde Chemical released its annual report for 2025 and the first-quarter report for 2026. The company achieved revenue of 472 million yuan in 2025, a decrease of 13.25% compared to the previous year； Net profit showed a loss of 1.093 billion yuan, a year-on-year decrease of 1466.03% ； The net profit after deducting non-recurring items posted a loss of 1.114 billion yuan, a year-on-year decrease of 1577.70%. 　　Losses were also recorded in the first quarter of 2026: the company generated revenue of 86.424 million yuan in that quarter, a decrease of 22.72% compared to the previous year ； Net profit was -11.0989 million yuan, a decrease of 207.69% on a year-on-year basis. 　　On the same day, Tongde Chemical announced that due to a qualified opinion on its financial reports for 2025 and a negative opinion regarding its internal controls, its stock was subject to additional risk warnings starting from April 29, and it was reclassified as “ST Tongde”. 　　The main reason for the huge loss in 2025 was the impairment provision of 914 million yuan allocated to the ongoing PBAT integration project of Tongde Kechuang. As of the end of 2025, the cumulative investment in this project has reached 3.049 billion yuan, with the construction progress at 95.5%. However, due to changes in the investment environment, the project has currently been put on hold. 　　Tongde Chemical stated that it has been actively communicating with the relevant government departments to address the debt and funding pressures resulting from the integrated project for the PBAT new material industry chain. The People’s Government of Xinzhou City attaches great importance to this matter. It organized a special meeting with all participating banks and financial institutions in the jurisdiction, clearly stipulating that banks must not recall loans. It also coordinated the resources of various financial institutions to help the company overcome its difficulties. 　　Currently, the Xinzhou Municipal Government has coordinated with various lending banks to establish a Creditors’ Committee of Financial Institutions. This committee maintains active communication with all financial institutions, reaching consensus on measures such as maintaining existing credit lines, increasing new credit allocations, lowering interest rates, refraining from recalling loans or demanding principal repayment and refinancing, and ensuring timely loan renewals. These efforts aim to secure debt repayment extensions and adjustments to repayment schedules, thereby alleviating the company’s short-term debt burden. As of the date of this note, with the exception of a few banks, the company and its wholly-owned subsidiary Tongde Kechuang have renewed all their maturing bank loans, thereby ensuring adequate funding for the company’s needs.