Group 1 - The company announced a board restructuring on October 28, with Jiang Yanshan elected as the new chairman of the board, temporarily assuming the role of general manager during the vacancy [1] - The previous general manager, Li Wei, completed his term, and the company is currently in a transitional phase of resuming operations and risk mitigation, leading to the decision not to appoint a new general manager at this time [1] - Jiang Yanshan, born in January 1974, has a background in finance and has held various positions in local government before becoming the chairman of the company [1] Group 2 - The company's main source of revenue and profit is its paper-making business, which has faced significant challenges, resulting in consecutive years of losses [2] - In 2023, the company reported a net loss attributable to shareholders of 1.281 billion yuan, and the projected loss for 2024 is expected to increase to 7.411 billion yuan [2] - For the first half of the year, the company achieved operating revenue of 2.107 billion yuan, a year-on-year decline of 84.83%, with a net loss of 3.858 billion yuan, reflecting a staggering year-on-year decrease of 13,567.59% [2]

Core Viewpoint - The significant sell-off of shares by smart money (northbound funds) in LiuGong during the second quarter has raised concerns about the impact of leadership changes on stock performance, despite the company's assurance of long-term growth potential [1] Company Response - The company acknowledges that short-term stock price fluctuations are influenced by various factors but emphasizes that these do not affect its long-term development value [1] - Following the leadership transition, the company has achieved a smooth transition and maintains strong execution under the new board of directors [1] - LiuGong's performance continues to show a steady growth trend, supported by its market-oriented mechanisms, strategic vision, global framework, and a rich corporate culture developed over 67 years [1] - The company expresses confidence in delivering long-term stable growth and operational results to reward shareholders and market trust [1]