Xin Lang Cai Jing·2025-12-29 13:45Core Viewpoint - Fenglong Co., Ltd. is undergoing its second attempt at a change of control, having signed a share transfer agreement with UBTECH Robotics Corp, which will result in a change of control after the transaction is completed [1][3]. Group 1: Control Change Attempts - This is the second attempt at a change of control for Fenglong Co. in over a year, following a failed attempt to transfer control to Zhejiang Dingdu Yungxiang Tourism Co. earlier in 2024 [3][6]. - The share transfer agreement was signed on December 24, 2024, between the controlling shareholder, Zhejiang Chengfeng Investment Co., Ltd., and UBTECH [3][4]. - UBTECH has no immediate plans to change the main business of the listed company within the next 12 months [3][4]. Group 2: Market Reaction - Fenglong's stock experienced a significant increase, with two consecutive days of trading limits reached on December 25 and 26, resulting in a cumulative price increase of over 20% [5][16]. Group 3: Previous Control Change Attempt - The previous control change attempt involved a proposed transfer of 29.99% of shares to Zhejiang Dingdu Yungxiang Tourism Co. but was ultimately terminated due to the expiration of the asset audit report and inability to meet deadlines for shareholder approval [6][17]. Group 4: Shareholder Reduction Plans - During the current control change planning, the actual controller, Dong Jianggang, announced a plan to reduce his holdings, intending to sell up to 2.75 million shares, representing 1.26% of the total share capital [7][19]. - Ningbo Fengchi Investment Co. also plans to reduce its holdings by up to 3.80 million shares, accounting for 1.74% of the total share capital [19]. Group 5: Company Performance - For the first three quarters of 2025, Fenglong reported total revenue of 373 million yuan, a year-on-year increase of 9.47%, and a net profit attributable to shareholders of 21.52 million yuan, reflecting a significant year-on-year growth of 1714.99% [19]. - Despite the substantial increase in net profit, the company's price-to-earnings and price-to-book ratios are significantly higher than the industry average, leading to market valuation disputes [19]. Group 6: Industry Context - The attempts at control change highlight the challenges faced by traditional manufacturing companies in China as they navigate the pressures of industry transformation [10][20].