LONCIN(SH:603766) Mei Ri Jing Ji Xin Wen·2025-11-15 09:40Core Viewpoint - Longxin General (SH603766) is facing significant challenges in its investment strategy, as evidenced by its recent announcements to sell stakes in Zunyi Jinye Machinery Casting Co., Ltd. and Zhuhai Longhua Helicopter Technology Co., Ltd. at drastically reduced prices, reflecting a broader trend of declining asset values and unsuccessful investments since 2014 [2][3][7]. Group 1: Asset Sales - Longxin General plans to transfer 66% of its stake in Zunyi Jinye for 105.6 million yuan, a decrease of over 70% from the previously planned transfer price of 410 million yuan in 2022 [2][3]. - The company is also selling its 49.9988% stake in Zhuhai Longhua for just 1 yuan, indicating a severe depreciation in asset value [2][3]. Group 2: Historical Investment Performance - Since 2014, Longxin General has engaged in multiple equity investments, including Guangzhou Weining Electromechanical Co., Ltd., Italian CMD, and Shandong Lichi New Energy Co., Ltd., but most of these investments have resulted in low-value transfers and impairments [2][7]. - The investment in Zunyi Jinye was initially made in 2019 for 429 million yuan, but the company has not met performance commitments, leading to a significant decline in its financial performance [5][6]. Group 3: Strategic Shift - Longxin General has stated that the recent asset transfers are part of a strategic shift to "focus on core business" established in September 2021, although efforts to find potential buyers for these assets have largely been unsuccessful [13][15]. - The company is also undergoing a change in control due to the financial difficulties of its former controlling shareholder, with new management needing to address competition issues and accelerate internal asset integration [15][16].