SHBM(SH:900939) Sou Hu Cai Jing·2025-05-28 06:07Core Viewpoint - The significant stock price increase of Hui Li B (900939) from a potential delisting risk to a six-day price surge is attributed to the company's rapid share buyback plan and the liquidity issues in the B-share market [1][2]. Group 1: Share Buyback and Market Response - Hui Li B's share price reached a limit up of $0.394 per share on May 28, following a buyback announcement on May 20, where the company planned to repurchase shares with a budget between RMB 3 million and RMB 6 million, at a price not exceeding $0.510 per share, representing a premium of nearly 130% over the closing price of $0.222 per share on that day [1]. - The company executed its first buyback by purchasing 595,300 shares for a total of $135,000, equivalent to RMB 971,500 [3]. - Following the buyback, the trading volume decreased significantly, with a total transaction amount of only $20,540 on May 28 [3]. Group 2: Historical Context and Financial Performance - A similar situation occurred last year when the company faced delisting risks, causing its stock price to drop from $0.39 to $0.128 [5]. - Despite the stock price recovery, Hui Li B's financial performance remains weak, with net profits declining from RMB 17.29 million in 2020 to RMB 1.25 million in Q1 2023, and a total market capitalization of approximately $72 million (RMB 518 million) as of May 28 [6]. - The company has acknowledged its ongoing struggle to expand its business and improve its financial situation, with its main operations now focused on leasing its own factory buildings, which, while stable, do not generate significant revenue [6][9]. Group 3: Operational Challenges and Workforce - Hui Li B's leasing business faces potential declines, particularly due to pressures on its client, Dongchi Company, a Mercedes-Benz dealer, which has requested a reduction in rent amid increased competition from electric vehicles [7]. - The company has been attempting to diversify its operations through various strategies, including investments in new projects, but has not achieved substantial progress [8]. - Hui Li B has a notably small workforce, with only 11 employees, which may hinder its ability to effectively pursue new business opportunities [9][11].