JIEQIANG EQUIPMENT(SZ:300875) Xin Lang Cai Jing·2025-10-27 08:04Core Viewpoint - The company, Jieqiang Equipment, is facing significant challenges due to declining revenues in its core hydraulic transmission and control systems business, compounded by legal issues involving its former chairman and general manager, which have led to increased uncertainty regarding its future performance [1][4][5]. Group 1: Business Performance - Jieqiang Equipment was listed in August 2020, initially emphasizing its position as the "sole supplier" of hydraulic power systems for military decontamination vehicles, contributing 2.42 billion yuan in revenue, accounting for 90.62% of total revenue [2]. - The hydraulic transmission and control systems business experienced a drastic decline, with revenues dropping by 72.86% in 2021 to 66.03 million yuan, and continuing to fall to negative values by 2024, with revenues of -63.43 million yuan [2][3]. - The company has shifted its revenue reliance to the nuclear radiation monitoring equipment business, which generated 1.23 billion yuan in 2024, nearly 90% of total revenue [2]. Group 2: Legal Issues - The former chairman and general manager, Pan Feng, is embroiled in a bribery case, leading to his investigation and subsequent detention, which has negatively impacted the company's operations [4][5]. - The legal troubles have resulted in the inability to execute a 158 million yuan project awarded in March 2022, leading to an asset impairment loss of 43.82 million yuan by the end of 2024 [6]. Group 3: Acquisition Strategy - In response to declining performance, Jieqiang Equipment acquired 51% of Shandong Carbon Seeking New Materials for 46.9 million yuan, a transaction with a premium of over 16 times the assessed value [7][8]. - Shandong Carbon Seeking reported revenues of 17.65 million yuan and a net profit of 857,900 yuan in 2024, with a target of achieving a cumulative net profit of 55 million yuan from 2025 to 2027 [7]. - The acquisition poses high risks, including market uncertainty, integration challenges, and potential goodwill impairment, raising questions about the effectiveness of this strategy in stabilizing the company's financial performance [8].