DEREN(SZ:002055) Chang Jiang Shang Bao·2025-09-04 00:05Core Viewpoint - Derun Electronics is divesting its 18% stake in Liuzhou Shuangfei Automotive Electrical Parts Manufacturing Co., Ltd. for 135 million yuan to alleviate financial pressure and refocus on its core connector business [1][2][4]. Group 1: Asset Divestiture - The company plans to transfer its 18% stake in Liuzhou Shuangfei, which it originally acquired in 2016 for 600 million yuan, due to underperformance and strategic misalignment [1][3]. - Following the sale of 42% of its stake in February 2023 for 416 million yuan, Derun Electronics will no longer hold any equity in Liuzhou Shuangfei [1][3][4]. - The divestiture is part of a broader strategy to optimize business structure and enhance resource allocation [6]. Group 2: Financial Performance - In the first half of 2025, Derun Electronics reported revenues of 2.116 billion yuan, a 21% decrease year-on-year, but achieved a net profit of 52.0623 million yuan, marking a 154.98% increase [1][5]. - The company has faced significant financial challenges, with total assets of 5.146 billion yuan and a debt ratio of 72.7% as of June 2025 [6]. - The company has utilized 13.9 billion yuan of the 16.43 billion yuan raised from a previous financing round, with a portion allocated to replenish working capital [6]. Group 3: Market Conditions - The automotive wiring harness industry has become increasingly competitive, with Liuzhou Shuangfei facing challenges such as fluctuating customer orders and rising procurement costs [4]. - The company anticipates continued pressure on Liuzhou Shuangfei's performance, with significant losses expected in the second half of 2025 [4].