Changhong Polymer(SH:605008) Xin Lang Cai Jing·2025-07-24 23:10Core Viewpoint - Longhong High-Tech (605008.SH) experienced a mixed market response upon its resumption of trading after a 10-day suspension, with a slight increase of 1.71% on the first day but a subsequent decline of 2.13% the following day, despite a general market uptrend. The company announced a significant asset restructuring plan involving the acquisition of 100% equity of Guangxi Changke New Materials Co., Ltd., which is controlled by its actual controller, Tao Chunfeng, marking this as an associated transaction [1][3]. Company Performance - Longhong High-Tech's revenue has nearly tripled since its listing in 2020, growing from 1.297 billion to 3.634 billion by 2024. However, its gross margin has significantly decreased from 31.82% to 9.2%, leading to a drop in net profit from 302 million to 94.22 million, indicating a severe decline in operational quality [1][3]. - In Q1 2025, the company reported a revenue decline of 6.93%, marking its first quarterly loss since going public. The oversupply in the domestic styrene thermoplastic elastomer market has led to price wars, adversely affecting performance [3][6]. Guangxi Changke's Financials - Guangxi Changke's revenue for 2023, 2024, and the first half of 2025 was 668 million, 1.017 billion, and 808 million respectively, with net profits of -33.6 million, -79.1 million, and 34.9 million, indicating a return to profitability in the first half of 2025 [3][5]. - The company has undergone three developmental phases, with significant advancements in product development and production capacity from 2016 to 2025, leading to stable profitability and rapid growth [3][6]. Ownership Structure Changes - Prior to the acquisition, Guangxi Changke's ownership structure included significant stakes from state-owned enterprises, which fully exited before the merger. The new structure is now entirely privately held, with Tao Chunfeng's enterprises holding the majority [11][13]. - The exit of state-owned capital occurred in April and July 2025, with the new shareholders being Hainan Dingheng Venture Capital Co., Ltd., Ningbo Dingke Enterprise Management Partnership, and Ningbo Dingao New Materials Co., Ltd., all controlled by Tao Chunfeng [13][14]. Financial Risks - Longhong High-Tech's current valuation is considered high, with a price-to-book ratio of 4.93 times despite reporting losses. The company has 396 million in cash, but its total short-term and long-term borrowings exceed 2.5 billion, resulting in a quick ratio of only 0.42, indicating potential financial risks [14].