SEC(SH:603988) Zheng Quan Zhi Xing·2025-06-16 12:15Core Viewpoint - The stock of China Electric Motor Co., Ltd. experienced abnormal trading fluctuations, with a cumulative closing price increase of 20% over two consecutive trading days, prompting the company to clarify its operational status and financial performance [1][2]. Group 1: Stock Trading Abnormalities - The company's stock trading on June 13 and June 16, 2025, saw a cumulative closing price increase of 20%, classified as abnormal trading fluctuations according to Shanghai Stock Exchange regulations [1]. - The company conducted a self-examination and confirmed that there are no undisclosed significant matters affecting the stock price [2]. Group 2: Financial Performance - The consolidated net profit for the year 2024 was reported at -10.33 million yuan, a significant decline of 123.90% compared to a net profit of 43.21 million yuan in 2023 [3]. - The decline in net profit is primarily attributed to a decrease in fair value gains from Hong Kong stocks held by the company's wholly-owned subsidiary [3]. Group 3: Valuation Metrics - The latest rolling price-to-earnings (P/E) ratio for the company is 537.90, and the price-to-book (P/B) ratio is 10.24, both significantly higher than the industry averages of 18.72 for P/E and 2.41 for P/B [2][3]. Group 4: Operational Status - The company confirmed that its production and operational activities are currently normal and orderly, with no significant changes in the internal or external operating environment [2]. - There are no undisclosed major events such as asset restructuring, share issuance, or significant business collaborations that could impact the stock price [2]. Group 5: Industry Context - The company operates in the electrical machinery and equipment manufacturing sector, specifically in the motor manufacturing industry, which may face risks due to market, economic, and policy changes affecting profitability [4].