Core Viewpoint - The controlling shareholder of Hangxin Technology (300424) is planning to change, which may lead to a shift in the company's actual controller [1][4]. Group 1: Control Change Announcement - Hangxin Technology announced on October 27 that its controlling shareholder, Guangzhou Hengmao, is planning a change in control, which may result in a change of the actual controller [1][4]. - The stock and convertible bonds of Hangxin Technology will be suspended from trading starting October 28, 2025, for a period not exceeding two trading days due to this uncertainty [1][4]. - Guangzhou Hengmao became the controlling shareholder of Hangxin Technology in June 2021 after acquiring shares from previous shareholders [3][4]. Group 2: Financial Performance and Stock Movement - Hangxin Technology's stock price has increased by over 30% since the end of September 2025, with a single-day increase of over 10% just before the trading suspension [2][4]. - Since Guangzhou Hengmao took control, Hangxin Technology has been in a state of "increasing revenue but not increasing profit," and it is expected to incur losses again in 2024 [2][6]. - As of June 30, 2025, Hangxin Technology reported a net loss of approximately 95.38 million yuan for the year 2024 [6]. Group 3: Financial Health and Credit Rating - As of June 30, 2025, Hangxin Technology's accounts receivable stood at 698 million yuan, while cash reserves were only 290 million yuan, indicating potential liquidity issues [8]. - The company's asset-liability ratio was approximately 68.98% as of June 30, 2025, reflecting a high level of debt [9]. - The company's credit rating was downgraded to "A-" due to issues related to revenue recognition and internal control problems, as well as the freezing of shares held by limited partners of Guangzhou Hengmao [7][8].

Core Viewpoint - After three years of ownership, both performance and stock price of Hangxin Technology have stagnated, prompting the second actual controller to consider divesting [1] Company Performance - Hangxin Technology's major business includes the development, testing, and maintenance of airborne equipment, with maintenance services accounting for approximately 80% of revenue [1] - The company has experienced a decline in performance since its IPO, with the net profit dropping from 61.89 million yuan in 2015 to 50.67 million yuan in 2019, representing a decrease of 13.24% in the first year [2][5] - In 2020, the company reported a significant loss of 327 million yuan, marking its first annual loss since going public, alongside a decline in revenue to 1.224 billion yuan, down 18.13% year-on-year [6] Shareholder Changes - Guangzhou Hengmao, the current controlling shareholder, is planning to transfer control of Hangxin Technology, which may lead to a change in the actual controller [1][4] - The original founding team began to divest their shares after the company faced financial difficulties, culminating in a transfer of shares to Guangzhou Hengmao in September 2022 [6] Stock Performance - Hangxin Technology's stock has not seen significant growth over the past three years, although there was a notable increase of nearly 11% on October 27, 2025, just before the stock was suspended [9] - The company's latest market capitalization is approximately 4.95 billion yuan [9] Financial Metrics - In 2022, the company's non-net profit was only over 10 million yuan, which decreased to less than 5 million yuan in 2023, and it reported a loss of 117 million yuan in 2024 [10] - For the first half of 2025, revenue growth was less than 1%, with a non-net profit of 16.02 million yuan [10]