Rocoi(SH:603829) Mei Ri Jing Ji Xin Wen·2025-09-29 14:30Core Insights - The article discusses the departure of Shao Jiaxu from Luokai Co., Ltd. and highlights the significant financial impact of the company's investment in Quanzhou Qixing Electric Co., Ltd. since 2017, which is expected to generate over RMB 600 million in revenue for 2022 [2][8]. Investment and Financial Performance - Luokai Co. has sold Quanzhou Qixing at a price-to-earnings (PE) ratio of over 5 times, indicating a lucrative exit from the investment [2][20]. - Quanzhou Qixing has contributed over RMB 1.8 billion in revenue to Luokai Co. since its establishment, showcasing its importance as a subsidiary [8][12]. - The financial performance of Quanzhou Qixing has been strong, with revenues increasing from approximately RMB 1.38 billion in 2020 to an estimated RMB 4.71 billion in 2024 [12][14]. Client Relationships and Sales Dynamics - After the investment, Qixing Electric, previously a competitor, became Luokai Co.'s largest customer, generating sales of approximately RMB 2.1 billion in 2024 [7][12]. - Luokai Co. has reported cumulative sales to Qixing Electric exceeding RMB 900 million from 2020 to 2024, indicating a strong interdependence between the two companies [7][12]. Operational Changes and Future Outlook - The restructuring involved Luokai Co. acquiring a controlling stake in Quanzhou Qixing, which was previously wholly owned by Qixing Electric, leading to a "binding" relationship between the two entities [4][6]. - Despite the initial plan for Qixing Electric to exit the same business area, it has continued to supply Luokai Co., resulting in significant sales figures [21][22]. - Luokai Co. plans to divest its stake in Quanzhou Qixing for approximately RMB 100 million, valuing the company at about RMB 197 million, which reflects a PE ratio of around 5.4 times based on its projected profits [23][24].