SongYang(SH:603863) Mei Ri Jing Ji Xin Wen·2025-12-30 16:43Core Viewpoint - Songyang Resources is divesting its controlling stake in its lottery subsidiary, Songyang Lottery (Beijing) Management Co., Ltd., due to the subsidiary's development not aligning with the company's strategic goals, amidst ongoing financial losses in the lottery business [1][4]. Group 1: Company Overview - Songyang Resources, based in Shantou, Guangdong, operates in the environmental recycled paper industry and has a market capitalization of 4.3 billion yuan [1]. - The company entered the lottery sector two years ago, which initially attracted significant capital interest and led to a surge in its stock price [1]. Group 2: Financial Performance - Songyang Resources reported net losses exceeding 200 million yuan for each year from 2022 to 2024, raising concerns among investors regarding its lottery business [1]. - The lottery subsidiary, Songyang Lottery, generated revenue of only 9,600 yuan in 2024 and incurred a loss of 150,920 yuan, while the parent company reported revenue of 314 million yuan and a loss of over 86.7 million yuan in the first three quarters of this year [3]. Group 3: Strategic Decisions - The company plans to sell its 51% stake in Songyang Lottery for 1 yuan to individual Zhao Xiangyue, who was one of the original shareholders [2]. - The divestment is intended to optimize the company's business structure, focus on its core operations, and reduce operational costs, with Songyang Lottery no longer included in the consolidated financial statements post-sale [2][3]. Group 4: Future Outlook - The sale of Songyang Lottery raises questions about the company's future strategy in the lottery sector, especially since it has also invested in another lottery-related company, Jinling Lottery Technology Co., Ltd., which is still in its early stages due to regulatory delays [4]. - Recent personnel changes, including the resignation of a key executive involved in the lottery business, suggest a potential shift in the company's approach to its lottery operations [5].