Core Viewpoint - The actual controller of Jiachuan Video, Chen Kunjian, is planning to change the company's control rights after six consecutive years of losses, leading to a stock suspension starting August 4 [2][3]. Group 1: Company Performance - Jiachuan Video has reported a cumulative loss exceeding 500 million yuan over the past six years, with net profits for the years 2019 to 2024 being -158 million, -48.93 million, -105 million, -77.09 million, -66.62 million, and -58.05 million respectively [5][6]. - In 2024, the company achieved a revenue of 149 million yuan, a year-on-year increase of 14.16%, but still reported a net loss of 58.05 million yuan, indicating a reduction in losses compared to previous years [5][6]. - The company’s total assets stood at 237 million yuan, with a net asset value of 27.11 million yuan and a debt ratio nearing 90% [5]. Group 2: Reasons for Losses - The continuous losses are attributed to four main factors: declining gross margins in traditional businesses, revenue drop in emerging businesses, high R&D expenditure ratio, and asset impairment losses [6][7]. Group 3: Risk of ST Status - Jiachuan Video is on the brink of facing ST (special treatment) risk due to negative net profit and low revenue, which could trigger financial delisting warnings [6][7]. Group 4: Management's Response - The company has outlined measures to improve operational performance, including optimizing cash flow management, restructuring assets, enhancing debt management, and focusing on core business investments [8]. Group 5: Control Rights and Financing - Chen Kunjian, who holds an 18.63% stake in Jiachuan Video, had previously planned a private placement to raise up to 140 million yuan, which is now uncertain due to the potential change in control [11][13]. - The planned private placement aimed to improve the company's capital structure and alleviate debt pressure, but the success of this plan is now in doubt with the control change [12][13].