Market Environment - The stock price of Sowell (LHSW.OQ) declined due to concerns over the disruptive impact of artificial intelligence (AI), leading to a widespread sell-off in the U.S. stock market. The Nasdaq index dropped by 2.03% on February 12, 2026, putting pressure on technology stocks. Although the software services sector, to which Sowell belongs, rose by 1.25% on February 13, the prior volatility in tech stocks may have negatively affected investor sentiment [1]. Company Trading Dynamics - On February 13, 2026, Sowell's trading volume was $710,500, with a turnover rate of 6.49%, significantly lower than the previous day's turnover rate of 196.83%. This indicates a return to normal market participation after an unusually high trading activity, suggesting weakened buying momentum that could exacerbate the stock price decline [2]. Performance and Operational Situation - According to the fiscal year 2025 financial report (ending March 31, 2025), Sowell is undergoing a business transformation, with software revenue increasing by 177% year-over-year. However, revenue from electronic products decreased by 30%. Despite a net profit increase of 10.89% year-over-year, the market may be cautious about the sustainability of the revenue structure changes, impacting short-term stock performance [3]. Financial and Technical Aspects - On February 13, 2026, the stock experienced a volatility of 12.68%, with an intraday high of $0.23 and a low of $0.20, ultimately closing at $0.22, reflecting a decline of 9.09%. Over the past five days, the stock has cumulatively dropped by 62.38%, indicating persistent bearish pressure. The net capital flow on that day did not show clear inflows to support the stock, and decreased capital activity may further suppress the stock price [4].

Group 1 - The audit report indicates that the financial statements of Yanzhou Dongfang Electromechanical Co., Ltd. fairly reflect its financial position as of December 31, 2024, and its operational results and cash flows for the year 2024 in accordance with accounting standards [2][5]. - The company was established on December 7, 1990, with a registered capital of 50 million RMB, and is located in Zoucheng City, Shandong Province [5][6]. - The main business of the company includes the research, design, manufacturing, and service of general explosion-proof electrical and automation products [5][6]. Group 2 - The company operates in the electrical machinery and equipment manufacturing industry, focusing on products such as mining explosion-proof electrical products, high and low voltage switchgear, and automation systems [5][6]. - The financial statements are prepared based on the going concern assumption, indicating that the company has the ability to continue its operations for at least 12 months from the reporting date [6][7]. - The company adheres to the accounting principles set forth by the Ministry of Finance and the China Securities Regulatory Commission, ensuring that its financial reporting is in compliance with relevant regulations [6][7].