Core Viewpoint - The stock price of Luyang Energy fell by 2.25% on September 18, 2023, with a trading volume of 64.27 million yuan and a market capitalization of 6.47 billion yuan [1]. Group 1: Stock Performance - Luyang Energy's stock price has increased by 5.17% year-to-date, but has decreased by 4.54% over the last five trading days [2]. - Over the past 20 days, the stock price has risen by 5.08%, and over the past 60 days, it has increased by 18.18% [2]. Group 2: Company Overview - Luyang Energy, established on October 14, 1992, and listed on November 30, 2006, is located in Yiyuan County, Zibo City, Shandong Province [2]. - The company specializes in the research, production, and sales of refractory insulation products, including ceramic fibers (87.65% of revenue), industrial filtration products (6.47%), automotive pads (5.54%), and others (0.34%) [2]. Group 3: Financial Performance - For the first half of 2025, Luyang Energy reported operating revenue of 1.173 billion yuan, a year-on-year decrease of 27.31%, and a net profit attributable to shareholders of 76.62 million yuan, down 62.97% year-on-year [2]. - The company has distributed a total of 2.772 billion yuan in dividends since its A-share listing, with 1.225 billion yuan distributed in the last three years [3]. Group 4: Shareholder Information - As of June 30, 2025, the number of shareholders of Luyang Energy increased by 16.37% to 15,400, while the average circulating shares per person decreased by 14.03% to 32,763 shares [2]. - Among the top ten circulating shareholders, E Fund CSI Dividend ETF (515180) is the fifth largest, holding 3.2783 million shares, a decrease of 445,000 shares from the previous period [3].

Core Viewpoint - The sudden dismissal of three key management personnel at Luyang Energy has raised concerns about the company's stability and future performance, especially in light of its declining financial results and ongoing management turmoil [1][2][5]. Management Changes - Luyang Energy announced the dismissal of three key executives, including the financial head, vice president, and audit department head, which is unusual in the A-share market [1][2]. - The dismissed executives had recently joined the company, with their terms set to end in May 2026, indicating that their departure was not due to the completion of their terms [2][3]. - The company has not appointed successors for these roles, and the current president will temporarily assume the financial responsibilities [2][5]. Historical Context - The company has experienced frequent management changes since last year, with several long-term executives resigning for personal reasons, contrasting with the recent forced dismissals [3][4]. - The control shift to foreign shareholders has led to significant changes in the management team, with many new executives having foreign corporate backgrounds [4][5]. Financial Performance - Luyang Energy's financial outlook is concerning, with a projected net profit decline of 53.21% to 61.72% for the first half of 2025 compared to the previous year [6][7]. - The company has faced challenges due to a downturn in the real estate market, leading to reduced demand for its core ceramic fiber products [7][8]. - The introduction of new business lines has not yet significantly contributed to revenue, raising questions about their ability to offset declines in traditional business areas [8][10]. Dividend Strategy - Despite recent financial struggles, Luyang Energy has maintained a high dividend payout strategy, having distributed approximately 27.72 billion yuan since its IPO [10][11]. - The average dividend payout ratio from 2017 to 2024 has been around 76.59%, with a notable high of 117.22% in 2020 [11][12]. - Future dividend distributions will depend on the company's financial performance, with a commitment to distribute at least 20% of the annual distributable profits [14].