Yunlu Materials(SH:688190) Hua Xia Shi Bao·2025-06-19 11:45Core Viewpoint - The chairman and general manager of Qingdao Yunlu Advanced Materials Technology Co., Ltd. has been detained, causing a significant drop in the company's stock price, although the company claims this incident is unrelated to its operations [2][3]. Company Operations - The company reported that its operations remain normal and it has not been asked to assist in any investigations related to the chairman's detention [3]. - Yunlu specializes in advanced magnetic metal materials, with products used in power distribution and extending into sectors like new energy vehicles and 5G infrastructure [5]. - The company is the largest supplier of amorphous alloy thin strips in the industry, with an annual design capacity of 105,000 tons [5]. Financial Performance - In 2024, the company achieved a revenue of 1.9 billion yuan, a year-on-year increase of 7.24%, and a net profit of 361 million yuan, up 8.73% [5]. - However, in Q1 2024, the company reported a revenue of 421 million yuan, a decline of 4.87%, and a net profit of approximately 78.91 million yuan, an increase of 4.34% [6]. - The net cash flow from operating activities was -117 million yuan, a significant decrease of 969.12% year-on-year, attributed to increased cash outflows for strategic inventory [6]. Management Actions - Following the chairman's detention, the company announced that its directors and senior management would increase their shareholdings, indicating confidence in the company's future [8]. - Despite the announcement of share buybacks, the stock price continued to decline, closing at 84.26 yuan per share, down 2.56% [8].