KLM(SH:600686) Zheng Quan Zhi Xing·2025-07-09 01:36Core Viewpoint - Jinlong Automobile is facing significant challenges despite previous growth, with a recent announcement of share reduction by its second-largest shareholder indicating potential concerns about the company's future performance [1][8]. Financial Performance - Jinlong Automobile's sales in Q1 2025 reached 11,000 units, a year-on-year increase of 11.79%, but subsequent months showed negative growth, with sales of 3,611 and 3,575 units in April and May, respectively, resulting in a slight overall increase of 0.21% for the first five months [6][8]. - The company reported a historical high asset-liability ratio of 85.9% as of the end of Q1 2025, indicating increasing financial pressure [7][8]. - From 2019 onwards, Jinlong Automobile has accumulated a non-recurring net profit loss of 2.156 billion yuan over six years [5]. Management Changes - The company has undergone multiple management changes, with the latest being the appointment of Chen Feng as chairman following the resignation of Xie Siyu in April 2025 [3][8]. - Chen Feng's experience in the automotive industry is seen as crucial for navigating the company's current challenges, including declining sales and ongoing financial difficulties [8]. Historical Context - Jinlong Automobile has experienced fluctuating performance since its establishment in 1988, with significant management turnover and a notable "subsidy fraud" incident impacting its reputation and financial stability [1][2][4]. - The company achieved its best performance in terms of revenue growth from 2022 to 2024, but still faced challenges with non-recurring net profit losses during this period [5].