Loss of 150 billion RMB in half a year—the automotive淘汰赛 in 2026 will be even more brutal!

A black swan event struck—Stellantis, the world’s fourth-largest automaker, suddenly imploded. On February 6 local time, Stellantis’ U.S.-listed shares plunged sharply after market open, falling over 26% intraday and closing down 23.79%. Earlier, during European trading hours, Stellantis’ shares on European exchanges tumbled nearly 30%, ultimately closing down 25.24%—a record single-day decline in the company’s history. Stellantis’ stock had already been under prolonged pressure: its Paris-listed shares fell 33% in 2024, another 18% in 2025, and a further 12% in January 2026. This over-25% single-day crash only intensified investor anxiety. You may not be familiar with Stellantis—but consider these iconic brands it owns: Maserati, Citroën, Jeep, Peugeot, and more. In total, it commands 14 renowned marques—and yet this global automotive giant collapsed seemingly out of nowhere. Its latest financial report sent shockwaves across the auto industry: for H2 2025 alone, Stellantis forecasts losses between €15.5 billion and €17.2 billion (≈RMB 155–172 billion). That figure carries nuclear-level impact—its share price immediately dropped 23.9%, wiping out over $45 billion in market value. How staggering is this loss? It sets an all-time record for automotive industry losses—equivalent to losing three aircraft carriers in six months, or erasing the entire annual net profit of ten BYD companies. If converted into RMB 100-yuan notes stacked vertically, the pile would reach 17 times the height of Mount Everest. Even China’s newly crowned A-share ‘loss king’, Vanke—whose full-year 2025 loss stood at RMB 82 billion—is merely half of Stellantis’ projected six-month deficit. So why did it collapse so catastrophically? Simply put: it suffocated chasing the EV dream. It went all-in on electrification—but grossly overestimated the pace of energy transition. Its aggressively launched EVs failed to gain traction in Europe and the U.S., forcing it to write off over €18 billion in transformation-related expenses. The €18+ billion restructuring charge breaks down as follows: • €1.47 billion: Realigning product plans per shifting customer preferences and adapting to new U.S. emissions regulations—reflecting a sharp downward revision of pure-EV demand expectations; • €210 million: Rationalizing EV supply chain scale, including battery manufacturing capacity adjustments; • €540 million: Other operational changes—including €410 million tied to revised warranty cost estimates due to inflation and deteriorating quality, plus €130 million related to workforce reductions across its European operations.

A super growth stock in the new consumer sector—annual and Q1 reports beat expectations, triggering a share price surge to the daily limit!

Next, let’s examine the broader consumer sector—and specifically the alcoholic beverage industry: In March, China’s total retail sales of consumer goods rose by just 1.7% year-on-year—down from 2.8% in February. Cumulative retail sales for January–March remain weak overall. From January to March 2026, revenue of designated large-scale enterprises in the liquor, beverage, and refined tea manufacturing sector declined 5.6% year-on-year, while net profit plunged 17.4% YoY. Both the broader consumer sector and the liquor industry are mired in deep stagnation—yet this company delivered breakthrough performance in Q1 2026, underscoring its robust growth potential. Consequently, its share price surged sharply over the past two trading days—clear evidence that capital markets hold strong confidence in its future growth trajectory. Now, let’s unpack the company’s 2025 Annual Report: 1. Revenue In 2025, liquor product revenue totaled RMB 2.57 billion—a 3.89% YoY decline; gross margin stood at 69.08%, down 0.95 percentage points YoY. Flavor & fragrance ingredient revenue reached RMB 323 million—down 3.91% YoY—with gross margin at 70.86%, up 1.74 percentage points YoY. Both liquor products and flavor ingredients posted modest declines in 2025—but both rebounded with recovery growth in Q1 2026. In 2025, revenue from the distributor model amounted to RMB 1.92 billion—down 10.79% YoY—with gross margin at 68.26%, down 1.65 percentage points YoY. By contrast, direct-sales revenue hit RMB 980 million—up 13.32% YoY—with gross margin at 71.29%, up 1.33 percentage points YoY. 2. Gross Margin & Net Profit Margin In 2025, the company’s gross margin was 69.18%, down 0.49 percentage points YoY from 69.67%—primarily driven by declining liquor product margins. Net profit margin stood at 21.66%, down 1.84 percentage points YoY from 23.5%. The sharper drop in net margin versus gross margin reflects substantial increases in operating expenses—most notably management expenses, which rose 16.63% YoY in 2025. In Q1 2026, gross margin improved to 70.31%—up 0.65 percentage points YoY from 69.66%; net profit margin rose to 27.06%—up 2.45 percentage points YoY from 24.61%. The net margin expansion outpaced gross margin growth, attributable to tighter expense control: management, R&D, and finance expenses remained virtually flat quarter-on-quarter. ............ Next, let’s review the company’s balance sheet: 1. Quasi-Cash & Interest-Bearing Debt As of 2025, the company held RMB 2.08 billion in quasi-cash (RMB 2.05 billion in cash & cash equivalents + RMB 30 million in trading financial assets), representing 24.2% of total assets (RMB 8.6 billion)—a relatively healthy ratio. Meanwhile, interest-bearing debt totaled RMB 2.4 billion (RMB 1.3 billion in short-term borrowings + RMB 1.1 billion in bonds payable), accounting for 27.9% of total assets—a relatively high proportion, suggesting room for improvement in operational stability. 2. Accounts Receivable & Contract Liabilities Accounts receivable stood at RMB 90 million in 2025—low relative to total assets—and down 65% YoY from RMB 260 million in 2024. As a result, accounts receivable turnover days fell to 21.5 days—down 6.5 days YoY from 28 days.

Stepan to Issue Q3 2026 Earnings Results on Oct. 28

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Stepan Company (NYSE: SCL) will release its Q3 2026 earnings on October 28, 2026, at 7:00 a.m. ET. A conference call led by CEO Luis Rojo and CFO Ruben Velasquez will follow at 9:00 a.m. ET.

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