Core Viewpoint - The performance of Luochang Technology (002813) has continued to decline despite being under the control of Zhonglian Heavy Industry (000157) for over three years, leading the company to plan the sale of its wholly-owned subsidiary, Nanyang Changfeng New Materials Technology Co., Ltd. [1][5][12] Company Performance - Luochang Technology has reported consecutive net losses, with net profits of approximately 79.19 million, 5.24 million, 3.29 million, -27.43 million, and -55.41 million from 2020 to 2024 [12] - In the first quarter of 2025, the company achieved revenue of approximately 75.31 million, a year-on-year increase of 25.47%, but the net profit was approximately -19.96 million, a year-on-year decrease of 26.47% [12] Subsidiary Sale - The company announced on June 14 that it plans to transfer 100% of its stake in Nanyang Changfeng to Longcheng Capital for approximately 60.28 million [1][5][8] - Nanyang Changfeng has failed to meet performance commitments made during the control transfer, with net profits of approximately 25.00 million, 22.14 million, and 17.96 million from 2022 to 2024, falling short of the promised 25 million per year [7][8] Related Transactions - Luochang Technology has maintained significant related party transactions with Longcheng Group and its subsidiaries, with transaction amounts of approximately 125 million, 78.74 million, and 54.45 million from 2022 to 2024 [11] - On the same day as the subsidiary sale announcement, the company disclosed additional expected related party transactions with Longcheng Group, totaling up to 15 million [10] Industry Outlook - The automotive electronics industry is experiencing rapid growth, driven by continuous technological innovation and increasing demand for smart and electronic features in vehicles [13][14]