As one of the world's leading lithium battery manufacturing equipment companies, Liyuan Heng (688499) recently disclosed its 2023 annual report. During the reporting period, the company realized a loss of attributable net profit, which was about -0.188 billion yuan. According to the data, Li Yuanheng landed on the board in 2021, and the company was profitable in 2021 and 2022, and its net profit increased year-on-year, which also means that the net profit loss in 2023 will become the company's first loss after listing. Under the unsatisfactory performance, Li Yuanheng's share price has also been falling since 2023, and its share price has fallen by more than 70% since 2023.

Full-year net profit loss 0.188 billion

financial data show that in 2023, Li yuanheng realized operating income of about 4.994 billion yuan, corresponding to the attributable net profit of about -0.188 billion yuan, and corresponding to the attributable net profit of about -0.195 billion yuan.

It is understood that Li Yuanheng landed in the-share market in July 2021. The company is mainly engaged in the research and development, production and sales of high-end intelligent manufacturing equipment, mainly providing smart factory solutions for enterprises in the new energy field (lithium battery, photovoltaic, hydrogen energy).

From the performance of the company after listing, Liyuan Heng's revenue and net profit in 2021 and 2022 are in a state of year-on-year growth, of which the operating income in 2021 is about 2.331 billion yuan, an increase of 63.04 percent over the same period last year; the corresponding attributable net profit is about 0.212 billion yuan, an increase of 51.18 percent over the same period last year.

In 2022, Liyuan Heng realized operating income of about 4.204 billion yuan, a year-on-year increase of 80.31; the corresponding attributable net profit was about 0.29 billion yuan, a year-on-year increase of 36.35.

It is not difficult to see that the net profit loss in 2023 is also the first net profit loss after the listing of Liyuan Heng.

for the company's performance changes, Li Yuanheng said, benefiting from the rapid development of the new energy industry, the company from the consumption of lithium battery cut into the power lithium battery, the rapid expansion of business scale. In order to meet the needs of rapid expansion of business scale and product technology iteration, the company increased investment in management, research and development, resulting in a higher level of expense ratio during the period. Affected by factors such as changes in revenue structure, intensified market competition, and the technical process of power lithium battery equipment is still in the running-in period, the company's comprehensive gross profit margin of sales has declined, which has a greater adverse impact on the company's operating performance in the case of a higher expense ratio during the period., The company suffered a loss in 2023. At the same time, during the transformation from consumer lithium to power lithium, the high management expense rate, the provision of large asset impairment losses and credit impairment losses put pressure on the company's operating results.

Data show that during the reporting period, Liyuan Heng's gross profit margin was 26.93, 7.63 percentage points lower than the same period last year; management expenses were 0.652 billion yuan, while management expenses in the same period last year were 0.484 billion yuan.

Li Yuanheng also pointed out the risk that the main reason for the decline in the company's gross profit margin was the intensification of the competition pattern in the field of power lithium, the company as a new entrant in product pricing has been discounted, and the increase in the proportion of power lithium revenue has led to a decline in the gross profit margin of the main business. If the Company's power lithium-ion products fail to be standardized and scaled to gain technical and cost advantages, and the competitive landscape in the power lithium-ion field further intensifies, there is a risk that the Company's gross profit margin will continue to decline.

Share price down over 70% since 2023

Liyuan Heng's share price has not performed well since 2023 under the unsatisfactory performance.

oriental wealth shows that since 2023, the cumulative decline in the Li yuan heng range is about 76%. As of the close of trading on April 19, Li Yuanheng's share price was reported at 26.54 yuan per share, with a total market value of 3.281 billion yuan.

In the face of the company's successive falling stock prices, Liyuan Heng's controlling shareholder Huizhou Liyuan Heng Investment Co., Ltd. (hereinafter referred to as "Liyuan Heng Investment") also launched a plan to increase its holdings in January this year.

on the evening of January 31, Li yuanheng said that within six months from February 1, 2024, Li yuanheng investment plan will increase its holdings of the company's shares by means permitted by the trading system of the Shanghai stock exchange (including but not limited to centralized bidding and block trading, etc.), with a total increase of not less than 5 million yuan and not more than 10 million yuan.

Regarding the reasons for the increase in shares, Li Yuanheng said that the controlling shareholder plans to increase the company's A shares based on confidence in the company's future development prospects, recognition of the company's value, and effective performance of social responsibilities to support the company's sustainable and stable development in the future.

Before the implementation of the above-mentioned increase in holdings, Liyuanheng Investment held 56.1433 million shares of the listed company, accounting for 45.41 of the total share capital of the listed company; controlling shareholders acting in concert Ningbo Meishan Free Trade Port Area Hongbang Investment Management Partnership (Limited Partnership), Ningbo Meishan Free Trade Port Area Yirong Investment Management Partnership (Limited Partnership) and Lu Jiahong (hereinafter collectively referred to as "concerted actors") hold 3.9003 million, 1.4062 million and 3.3031 million shares of the listed company respectively. Li Yuan Heng Investment and its concert parties hold a total of 64.7529 million shares of the company, accounting for 52.38 of the total share capital of the listed company.

It is understood that the actual controller of Li Yuanheng Investment is Zhou Junxiong, and the actual controller of listed companies is Zhou Junxiong and Lu Jiahong. Wang Chikun, an independent economist, said that the company's share buyback and the holding of shares by the controlling shareholders of listed companies can send a signal to the market, which is optimistic about the company in the long run. "However, if you want to boost the company's secondary market share price, listed companies still have to start with the company's fundamentals and improve the company's profitability." Wang Chikun said.

Up to now, Liyuan Heng has not disclosed the announcement of the completion of the controlling shareholder's increase in holdings, and Liyuan Heng's investment increase plan is still in progress.

A number of shareholders have thrown down their plans

since the listing, a number of shareholders have thrown out a reduction plan.

On July 1, 2022, Liyuanheng shareholder Shaodong Gongying Enterprise Management Partnership (Limited Partnership) (formerly known as "Ningbo Meishan Free Trade Port Zone Chuanjie Investment Partnership (Limited Partnership)", hereinafter referred to as "Shaodong Gongying") The shares of the listed company held by Shaodong Gongying were lifted from the restriction on sale and listed for circulation. After less than a week, Shaodong Gongying took the lead in throwing out the reduction plan.

according to Li yuanheng's announcement, due to its own capital needs, shaodong gongying plans to reduce the total number of shares of the company by centralized bidding by no more than 853600 shares, I .e. no more than 0.97 of the total number of shares of the company. as of the disclosure date of the announcement, shaodong gongying holds 3.8828 per cent of the shares of the company.

on November 4, 2022, Li yuanheng once again disclosed the announcement that due to his own capital needs, shareholders Cai wanting, Luo Jianbo, Luo Guoyun, Hu Changsheng and Zhong Haichang intend to reduce the total number of shares of the company by no more than 1.2655 million shares, that is, no more than 1.44 of the total number of shares of the company, through bulk trading and call auction trading. These shareholders currently hold 2.7132 million shares of the Company, representing approximately 3.08 per cent of the Company's total share capital. The reduction price will not be lower than the company's IPO issue price of 38.85 yuan/share.

on March 18, Li yuanheng also disclosed the announcement of shareholders' share reduction plan, saying that shareholders Xiao mingyan, zhong Haichang, Luo Jianbo, Hu Changsheng, Luo Guoyun and Cai wanting intend to reduce the total number of shares of the company by no more than 1.866 million shares, I .e. no more than 2.11 of the total number of shares of the company, through bulk trading and centralized bidding trading.

Bunaxin, vice president of the Science and Technology Industry Investment Branch of the China Association for the Promotion of International Science and Technology and executive director of the Strategic Investment think Tank, said in an interview with the Beijing Business Daily that after the lifting of the restrictions on the shares held by shareholders of listed companies, it is also a normal market behavior to reduce their holdings and a large proportion of the reduction plan may have a certain impact on the secondary market share prices of listed companies, mainly will be investors think that shareholders are not optimistic about the company's future share price.