Core Viewpoint - The company, Changling Hydraulic, is undergoing a potential change in control, leading to a suspension of its stock trading for an estimated period of no more than three trading days [2]. Group 1: Stock Suspension and Control Change - Changling Hydraulic announced that its stock will continue to be suspended from trading starting July 8, due to ongoing discussions regarding a significant matter that may result in a change of control [2]. - The company's major shareholders, Xia Jifa and Xia Zemin, are currently negotiating key terms of the transaction with the involved parties, which requires internal approval processes [2]. Group 2: Historical Context and Previous Suspensions - The company was listed on the Shanghai Stock Exchange on March 22, 2021, with a three-year lock-up period for its controlling shareholders, which will expire on March 22, 2024 [3]. - In January 2023, the company also suspended trading due to a similar situation regarding a potential change in control, which was later terminated due to disagreements on core terms with the transaction party [3]. Group 3: Financial Performance - For the year 2024, Changling Hydraulic reported a revenue of 883 million yuan, representing a year-on-year increase of 9.75%, while the net profit attributable to shareholders decreased by 6.84% to approximately 94.73 million yuan [4]. - This marks the fourth consecutive year of declining net profit since the company went public, contrasting with a steady increase in net profit from 2017 to 2020 [4].

Core Viewpoint - The actual controller of Changling Hydraulic is planning a significant matter that may lead to a change in the company's control [2] Group 1: Stock Suspension - Changling Hydraulic's stock (code: 605389) will be suspended from trading starting July 4, 2025, due to ongoing negotiations regarding a potential change in control [3] - The suspension is expected to last no more than two trading days to prevent abnormal fluctuations in the stock price [3] Group 2: Shareholding Structure - As of the end of Q1 this year, the major shareholders include Xia Jifa with 58.8 million shares (40.81% of total shares) and Xia Zemin with 39.2 million shares (27.21% of total shares) [3][4] - The total shareholding of the top five shareholders accounts for 77.75% of the total share capital, with a combined market value of approximately 33.84 billion yuan [4] Group 3: Business Overview - Changling Hydraulic operates in the hydraulic, casting, and photovoltaic industries, producing products such as hydraulic central swivel joints, tension devices, and precision castings [4] - The company completed the acquisition of Jiangyin Shangchi in 2023, entering the photovoltaic sector, which is expected to enhance its product offerings [5] Group 4: Financial Performance - In Q1 2025, Changling Hydraulic reported total revenue of 2.19 billion yuan, a year-on-year decrease of 2.64% [6] - The net profit attributable to the parent company was 310 million yuan, reflecting a year-on-year decline of 19.06% [6] - The company has a significant amount of accounts receivable, totaling 409 million yuan [5]

Core Viewpoint - The actual controller of Changling Hydraulic is planning a significant matter that may lead to a change in the company's control [2] Group 1: Stock Suspension - Changling Hydraulic's stock will be suspended from trading starting July 4, 2025, due to ongoing negotiations regarding the potential change in control [3] - The suspension is expected to last no more than two trading days to prevent abnormal fluctuations in the stock price [3] Group 2: Shareholding Structure - As of the end of Q1 this year, Xia Jifa holds 58.8 million shares, accounting for 40.81% of the total share capital, while Xia Zemin holds 39.2 million shares, accounting for 27.21% [4] - The total shareholding of the main shareholders and their concerted actions amounts to 112.01 million shares, representing 77.75% of the total share capital [5] Group 3: Business Overview - Changling Hydraulic operates in the hydraulic, casting, and photovoltaic industries, with products including hydraulic central swivel joints, tensioning devices, and precision castings [5] - The company completed the acquisition of Jiangyin Shangchi in 2023, entering the photovoltaic sector, which is expected to enhance its product offerings [6] Group 4: Financial Performance - In 2024, Changling Hydraulic's net profit attributable to the parent company decreased by 6.84%, despite an increase in revenue [6] - For Q1 this year, both revenue and net profit showed a year-on-year decline, with accounts receivable reaching 409 million yuan [6] - The total revenue for Q1 was 2.19 billion yuan, with a year-on-year change of 0%, while the net profit was 310 million yuan, down 19.06% year-on-year [7]