CXJG(SZ:002547) Zhong Guo Jing Ying Bao·2025-10-13 13:43Core Viewpoint - The company Suzhou Chunxing Precision Mechanical Co., Ltd. (Chunxing Precision) is facing significant financial difficulties, including continuous losses, a negative net asset position, and potential risks of delisting due to its financial instability [3][5]. Financial Performance - Chunxing Precision has reported cumulative losses exceeding 2.6 billion yuan from 2020 to 2024, with a net profit loss of 129 million yuan in the first half of 2025, representing an increase in losses year-on-year [3][5]. - As of June 30, 2023, the company's net assets were reported at -81.55 million yuan, with a debt-to-asset ratio of 101.36%, indicating insolvency [4][5]. Shareholder and Control Risks - The company's controlling shareholder, Sun Jiexiao, is facing judicial auction risks for a significant portion of his shares, which could lead to a change in control of the company [3][4]. - Sun Jiexiao's shares that were auctioned represent 15.05% of the total share capital, with 55.91% of his holdings being subject to auction [4]. Regulatory and Legal Issues - Sun Jiexiao has a history of legal troubles, including a conviction for insider trading, which has resulted in a ten-year ban from the securities market and a prison sentence [4][5]. - The company has indicated that if losses continue, it may face a situation where its audited net assets are negative by the end of 2025, triggering delisting risk warnings from the Shenzhen Stock Exchange [5]. Business Overview - Chunxing Precision primarily engages in the design and manufacturing of metal structural components for various sectors, including automotive, telecommunications, and consumer electronics, with notable clients such as Mahle and Warner Saint-Laurent [5].