SongYang(SH:603863) Hua Xia Shi Bao·2025-06-28 02:04Core Viewpoint - Songyang Resources is planning a share transfer that may lead to a change in control, prompting a temporary suspension of its stock to prevent abnormal price fluctuations [2][4]. Company Developments - The controlling shareholder, Wang Zhuangpeng, is in discussions regarding the transfer of shares, which could result in a change of control [4]. - The company has applied for a stock suspension starting June 27, 2025, for no more than two trading days to ensure fair information disclosure [4]. - Recently, the company announced the sale of state-owned land use rights for a total price of 84 million yuan to enhance asset efficiency [5]. Financial Performance - Songyang Resources has faced significant financial challenges, with cumulative losses reaching 750 million yuan from 2022 to 2024 [7]. - The company reported revenues of 928 million yuan in 2022, with a net loss of 277 million yuan; in 2023, revenues were 665 million yuan with a net loss of 237 million yuan; and in 2024, revenues were 727 million yuan with a net loss of 236 million yuan [7]. - The company’s products have shown negative gross margins, with coated whiteboard paper at -11.50% and high-strength corrugated paper at -4.93% [8]. Industry Context - The paper industry is experiencing overcapacity and declining demand, exacerbated by rising raw material prices [7]. - The industry is expected to see improved demand due to economic recovery and favorable policies, despite ongoing competitive pressures [7]. Shareholder Issues - Wang Zhuangpeng has pledged a significant portion of his shares, with 76.9% of his holdings (32.86 million shares) pledged [6]. - The second-largest shareholder, Shenzhen Qianhai Jinxingyang Investment Co., Ltd., has a pledge ratio of 96.47% on its shares [6]. Previous Transactions - The company attempted a high-premium acquisition of a related party, which faced scrutiny from the stock exchange, leading to a significant drop in share price [9]. - An acquisition attempt of 51% of a related company was announced but later terminated due to regulatory inquiries and concerns over valuation [11].