In just three short years, Hebang Bio (603077.SH) has experienced a dramatic reversal from peak performance to a quagmire of massive losses. Recently, this listed company spanning the chemical, photovoltaic, and phosphate mining sectors simultaneously received dual accountability actions from the Sichuan Securities Regulatory Bureau and the Shanghai Stock Exchange, directly pointing to violations in financial accounting and information disclosure. The previously released 2025 annual performance forecast further indicates that the company expects a full-year net profit attributable to shareholders to be in the range of a loss of 470 million to 570 million yuan, a stark contrast to the glorious period of 2021-2022 when it achieved a combined profit exceeding 6.8 billion yuan. The company is now deeply mired in a quadruple predicament of "regulatory accountability, massive performance losses, expansion setbacks, and high debt."

The implementation of dual accountability has brought to light issues in information disclosure and financial irregularities. The "Administrative Supervision Measures Decision" issued by the Sichuan Securities Regulatory Bureau clearly identifies two core violations by Hebang Bio: first, the premature recognition of revenue, where income confirmed by customers in 2025 was improperly recorded in 2024, resulting in an overstatement of 2024 revenue by 3.7326 million yuan; second, inaccurate information disclosure related to the issuance of convertible bonds in 2024, violating the "Administrative Measures for Information Disclosure of Listed Companies" and relevant provisions of the "Accounting Standards for Business Enterprises." This violation not only implicates the listed company but also extends accountability to core management and the controlling shareholder. The Sichuan Securities Regulatory Bureau decided to issue warning letters to Hebang Bio, its controlling shareholder Hebang Group, actual controller He Zhenggang, Chairman and General Manager Zeng Xiaoping, and CFO Wang Jun, with relevant records entered into the integrity archives of the securities and futures market. The Shanghai Stock Exchange simultaneously issued a regulatory warning, holding the controlling shareholder Hebang Group and actual controller He Zhenggang accountable for the inaccurate information disclosure regarding the convertible bonds. In response, Hebang Bio stated that it would attach great importance to rectifying the issues, strengthen the study of laws and regulations, and enhance the management of information disclosure and the quality of financial accounting. However, behind the regulatory accountability lies a reflection of loopholes in the company's internal control system, compounded by massive performance losses, resulting in a dual blow to market confidence.

The cliff-like decline in Hebang Bio's performance stems from the aftermath of the industry cycle shift and blind expansion. Established in 2002 and listed on the Shanghai Stock Exchange in 2012, the company's main business covers chemical, pesticide, photovoltaic materials, and mineral development. Riding the tailwind of the upward cycle in the chemical industry in 2021-2022, the company experienced a performance surge: net profit attributable to shareholders soared by 7284.28% year-on-year to 3.023 billion yuan in 2021, further increasing to 3.807 billion yuan in 2022, with a total profit exceeding 6.8 billion yuan over the two years and revenue surpassing the 10 billion yuan mark for the first time. However, the good times did not last long. The downturn in the industry cycle, coupled with strategic missteps, led to a continuous decline in performance: net profit attributable to shareholders plummeted to 1.283 billion yuan in 2023, further shrank to 31.46 million yuan in 2024, and directly fell into losses in 2025. Notably, the core of this loss stems from substantial asset impairment provisions rather than substantive losses from core operating businesses—the company clarified that after excluding the impact of asset impairment, net profit attributable to shareholders would be positive. According to the impairment indication announcement, the planned impairment amount for 2025 is 480 million to 580 million yuan, with a clear breakdown: first, inventory write-down provisions of 300 million to 380 million yuan due to the continuous decline in prices of soda ash, ammonium chloride, glass, and photovoltaic products, resulting in the net realizable value of inventory falling below cost; second, impairment of fixed assets, construction in progress, and intangible assets amounting to 365 million to 415 million yuan, mainly targeting assets related to the photovoltaic business, affected by industry supply-demand imbalances and strategic adjustments, leading to asset value depreciation; third, impairment of goodwill and related asset groups of 55 million to 65 million yuan, a prudent provision following business strategic adjustments.

The root cause of the performance decline lies in Hebang Bio's blind expansion during the upward cycle of the industry. In 2022, when the chemical industry's prosperity was at its peak, the company intensively announced expansion plans worth billions: investing 12.5 billion yuan to build a 500,000-ton/year glyphosate project in Guang'an, originally scheduled for operation in 2024; and adding an $800 million investment in Indonesia for sodium carbonate, ammonium chloride, and glyphosate projects. However, the market cycle quickly shifted, causing these projects to falter: the Guang'an project was changed to produce glyphosate, with the operational date postponed to 2027; the Indonesian sodium carbonate and ammonium chloride projects were directly suspended due to the failure to obtain preferential natural gas prices, and the glyphosate capacity was adjusted to 350,000 tons/year. This is not an isolated case; the layout in the photovoltaic field also ended hastily. In 2020-2021, the company invested 5 billion yuan in photovoltaic packaging materials and module projects. Later, due to industry overcapacity and intensified competition, the Panzhihua photovoltaic project was terminated in 2022, and the photovoltaic module project investment was suspended in 2024, exposing shortcomings in decision-making through frequent strategic shifts.

Continuous expansion investments have put pressure on cash flow and led to a high debt burden. From 2021 to 2024 and the first three quarters of 2025, the net cash flow from the company's investing activities has been consistently negative, accumulating to -5.484 billion yuan. As of the end of September 2025, short-term loans amounted to 2.552 billion yuan, and long-term loans were 1.671 billion yuan, highlighting liquidity pressure.

Path to Breakthrough: Can Phosphate Mines + Glyphosate Turn the Tide?
Facing multiple challenges, Hebang Bio pins its hopes on the release of phosphate mine capacity and the profitability recovery of core products. According to disclosures, the company owns three major phosphate mines: Mabian Yanfeng, Hanyuan Liujiashan, and Australia's Wonarah, with a combined reserve of approximately 624 million tons. In 2025, these mines entered trial production or engineering ore output stages. Upon full capacity operation in 2026, they will form an annual capacity of 4 million tons, expected to contribute profits by leveraging the high prosperity cycle of the phosphate mining industry. The glyphosate business is also entering an industry window period. Current glyphosate prices have exceeded 27,500 yuan/ton, with expectations of price increases driven by spring farming preparations and overseas demand. The company's Guang'an and Indonesian glyphosate projects are steadily advancing, and with the advantage of a "phosphate mine-glyphosate" full industry chain, its cost control capabilities lead the industry. Institutions predict that the company's revenue is expected to recover to 9-10 billion yuan in 2026, with net profit attributable to shareholders rebounding to 500-700 million yuan, achieving a bottoming out of performance. However, performance recovery still faces multiple uncertainties: the progress of phosphate mine capacity release, glyphosate price trends, the effectiveness of compliance rectification, and the alleviation of debt pressure will be key factors determining whether Hebang Bio can emerge from its predicament.