Core Viewpoint - The stock price of Yazhen Home Co., Ltd. (*ST Yazhen) has experienced a significant increase of 107.83% over a period of 26 trading days, leading to a suspension of trading due to abnormal fluctuations, despite the company's poor financial performance and ongoing losses [1][9]. Group 1: Company Overview - Yazhen Home was established in 1992 and is one of the earliest manufacturers and sellers of European-style furniture in China, focusing on mid-to-high-end products [3]. - The company went public on the Shanghai Stock Exchange in December 2016, benefiting from the rapid growth of the furniture industry in the early 2000s [3]. Group 2: Financial Performance - From 2018 to 2023, Yazhen Home's revenue has declined from 4.17 billion to 1.98 billion, with net profits showing significant losses, totaling nearly 500 million over the six years [4]. - The company faced a delisting risk warning in 2019 due to consecutive years of negative net profit, leading to a change in its stock name to *ST Yazhen [4][5]. - In 2024, the company reported total revenue of 2.02 billion and a net loss of 1.17 billion, with a non-recurring loss of 1.16 billion [5]. Group 3: Stock Price Movement - Following a change in the controlling shareholder, the stock price surged, with a notable increase of 48.61% from April 8 to April 17, and nearly 200% from April onwards [7][10]. - The stock experienced multiple trading anomalies, prompting a review by the company to protect investor interests [1][9]. Group 4: Shareholder Changes - On April 17, 2025, Yazhen Home announced a transfer of nearly 30% of its shares to Wu Tao and his associates, which could lead to a change in control of the company [7][8]. - The transfer price was set at 5.68 yuan per share, totaling approximately 448 million [7].

Core Viewpoint - The company, Yazhen Home (亚振家居), announced that its controlling shareholder is planning a share transfer that may lead to a change in control, while the stock price surged prior to the announcement, raising suspicions of insider trading [1][5]. Group 1: Share Transfer and Stock Performance - On April 22, Yazhen Home disclosed that its controlling shareholder, Shanghai Yazhen Investment Co., is planning a share transfer, which may result in a change of control [1]. - Before the announcement, from April 8 to April 17, Yazhen Home's stock price increased by 48.61%, leading to market speculation about potential insider trading [5]. - The stock price reached a closing price of 6.94 yuan on the last trading day before the suspension [1]. Group 2: Previous Attempts at Control Change - This is not the first time Yazhen Home has attempted to change its control; a similar attempt was made in November 2024, which ultimately failed due to disagreements between the controlling shareholder and the potential buyer [6]. - The company has previously sought control changes through acquisitions, including a failed attempt to acquire a 65% stake in Jiangsu New Product Aluminum Co. in 2018 and a proposed acquisition of Lianyungang Jingmei Smart Home Co. in 2020, which was also abandoned due to market conditions [7]. Group 3: Financial Performance and Challenges - Yazhen Home has faced financial difficulties, with net profit only increasing in 2020 by 113.42%, while experiencing declines in other years, resulting in total losses of nearly 500 million yuan over five years [8]. - The company was under delisting risk warning due to consecutive years of negative net profit in 2018 and 2019, but managed to remove this warning in 2020 thanks to government subsidies [8]. - For 2024, Yazhen Home anticipates a net loss between 118 million yuan and 96 million yuan, with projected revenue between 190 million yuan and 220 million yuan [8][10]. Group 4: Business Transformation Efforts - Established in 1992, Yazhen Home is one of the earliest manufacturers of European-style furniture in China, primarily focusing on mid-to-high-end products [11]. - The company has attempted to adapt to market trends by expanding into custom furniture, but this has not significantly impacted revenue [12]. - Previous attempts at business transformation through acquisitions have not been successful, indicating ongoing challenges in adapting to market demands [12].