Jusailong: Controlling Shareholder’s Stake Falls Below 51%, Frequent Reductions Hit 5% Ownership Threshold

After the equity change, the shareholding ratio of Hao Yuanzeng, Ren Ping, Hao Jianxin, Wu Ruosi, Anyi Jusaolong Consulting Management Enterprise (Limited Partnership), Anyi Jubolong Consulting Management Enterprise (Limited Partnership), and other parties acting in concert will change from...51.6942% decreased to 50.4459%It touches the 1% integer multiple fluctuation line.

Another announcement shows that the shareholding ratio of the controlling shareholder and persons acting in concert has reached a multiple of 5%. The company has disclosed a simplified report on changes in equity in accordance with regulations.

Intensive Shareholding Reduction in Progress

The share reduction announced this time is not an isolated event. Public information shows that on July 16, company executives Hao Jianxin, Ren Ping, and Wu Ruosi have...A total of 472,900 shares were reduced., accounting for 0.9896% of the company's total share capital.

On July 18, director and executive Hao Jianxin once again reduced his holdings by 70,900 shares, accounting for 0.1484% of the company's total share capital. In just three days, Hao Jianxin alone reduced his holdings by 543,800 shares.

On July 18th's closing data, it was reported that Jusalong experienced a block trade at a discount of 10.03%, with a total transaction amount of 2.9778 million yuan.

Performance growth is sluggish, and profit growth is slow.

Jusailong, as a high-tech enterprise specializing in the research, production, and sales of modified plastics, has maintained revenue growth in recent years but experienced sluggish profit growth.

• 2022 yearOperating revenue was 1.304 billion yuan, a slight year-on-year increase of 0.03%; net profit attributable to shareholders was 34.4945 million yuan, a year-on-year decrease of 46.24%.

• 2023Operating revenue reached 1.477 billion yuan, a year-on-year increase of 13.34%; net profit attributable to shareholders was 37.152 million yuan, a year-on-year increase of 7.7%.

• The year 2024Revenue was 1.709 billion yuan, an increase of 15.74% year-on-year; net profit attributable to shareholders was 38.4777 million yuan, an increase of 3.57% year-on-year.

In the first quarter of 2025, the company achieved operating revenue of 360 million yuan, representing a year-on-year increase of 5.76%. Net profit attributable to shareholders was 15.8023 million yuan, up 9.32% year-on-year.

In terms of profitability, during the period from 2022 to the first quarter of 2025, the company's gross profit margin on sales was9.94%-13.40%Fluctuations in between, net profit margin in sales1.51%-3.76%The fluctuations between. The 2024 third-quarter report shows that the company's gross profit margin is only 9.38%.

The South China Phase II production base, as an IPO fundraising project of the company, has been capitalized and put into production with a designed capacity of 50,000 tons, and is currently in the capacity ramp-up phase. The East China Phase II production base is expected to be...Scheduled to be put into use by the end of June 2025After production begins, it is expected that 30% of the capacity will be released in the first year.

The company stated that its modified plastics are customized products, with major clients being well-known enterprises in the home appliance and automotive industries, such as Midea, Supor, Hisense, Changan Group, and GAC Group. The strong customer loyalty provides a solid guarantee for capacity utilization.

Market Response and Stock Price Performance

On July 22, Jusailong's stock price fell by 1.58%, closing at 46.66 yuan per share, with a total market value of 2.23 billion yuan. Previously, on May 13, the company's stock price had reached 48.4 yuan, with a trailing price-to-earnings ratio of 58.08 times and a total market value of 2.313 billion yuan.

As for the capital flow, data from May 13 indicates that the main capital inflow for Jusailong was 12.9342 million RMB, but over the past five days, there has been an overall outflow, totaling 34.6373 million RMB.

Challenges and Prospects

The main challenges faced by Jusailong include:

1. Gross margin pressureThe intensifying industry competition and the pricing demands from downstream customers have impacted the product's gross profit margin.

2. Cash flow issueOperating cash flow is negative, mainly due to differences in settlement terms between customers and suppliers.

3. Shareholder selling pressureThe substantial share reduction by the controlling shareholder and parties acting in concert may affect market confidence.

The company stated that it will respond to challenges by continuously optimizing product formulas, improving R&D technology and product added value, and enhancing production efficiency.