Core Viewpoint - *ST绿康 has completed the transfer of control and the sale of its loss-making photovoltaic film business, which is expected to improve its future financial situation [1][2]. Group 1: Company Overview - *ST绿康, originally focused on veterinary pharmaceuticals and related products, attempted to diversify into the photovoltaic film sector through acquisitions in 2022, but this transition was unsuccessful [1]. - The company reported significant losses, with net profits of -122 million yuan in 2022, -222 million yuan in 2023, and projected -445 million yuan in 2024 [1]. Group 2: Control Transfer and Asset Sale - The original controlling shareholder, Shanghai Kangyi Investment Co., initiated the control transfer process in April 2023, culminating in the transfer to Fujian Zongteng Network Co. on November 25, 2023 [2]. - The asset sale involved the divestment of three subsidiaries related to the photovoltaic business at a price of 0 yuan, effectively removing the loss-making assets from the company's balance sheet [2]. Group 3: New Controlling Shareholder - The new controlling shareholder, Zongteng Network, established in 2009, specializes in global cross-border e-commerce infrastructure services, focusing on warehousing and logistics [3]. - For the fiscal year 2024, Zongteng Network reported total revenue of 27.105 billion yuan and a net profit of 1.122 billion yuan, with total assets of 10.443 billion yuan and total liabilities of 4.8 billion yuan [3].

Core Viewpoint - *ST Lvkang is facing significant uncertainty regarding its ability to continue operations due to insolvency, while simultaneously engaging in a series of capital actions such as equity transfers that appear to be self-rescue efforts. The question arises whether the company will pursue a backdoor listing or engage in "tri-party transactions" in its capital operations, with the former being potentially more uncertain given the urgency of maintaining its listing status [1] Group 1: Financial Performance and Business Transition - Lvkang Biotech, originally focused on veterinary drug raw materials and probiotics, has seen a decline in performance since its listing in 2017, with a net profit drop of 6.97%, 13.08%, 23.73%, and 24.15% from 2017 to 2020 [2] - In 2021, the company reported a revenue of 363 million yuan, a year-on-year increase of 17.93%, but incurred a net loss of 26.04 million yuan, a decline of 160.28% compared to the previous year [2] - The company entered the photovoltaic film sector in 2022 through acquisitions, leading to a significant stock price increase from around 10 yuan to a peak of 65.9 yuan, representing a more than fivefold increase [2] Group 2: Ongoing Losses and Financial Challenges - Lvkang Biotech has continued to incur losses, with net profits of -122 million yuan, -222 million yuan, and -445 million yuan projected for 2022, 2023, and 2024 respectively, indicating a worsening financial situation [3] - The photovoltaic film business has negatively impacted the company's financial statements due to low gross margins and high financial costs associated with increased bank loans and financing leases [3] - As of December 31, 2024, the company's current liabilities exceeded current assets by over 1 billion yuan, raising significant doubts about its ability to continue as a going concern [4] Group 3: Shareholder Changes and Market Reactions - On April 24, 2025, Lvkang Biotech announced a change in control, with major shareholders transferring shares to Zongteng Network at a price of 13.73 yuan per share, totaling approximately 639.93 million yuan [5] - This transfer will increase Zongteng Network's ownership to 29.99%, surpassing the previous controlling shareholder's stake [5] - The market is speculating whether Zongteng Network's involvement indicates a backdoor listing or a different capital strategy, especially as the company also announced plans to divest its photovoltaic assets [9] Group 4: Strategic Moves and Future Outlook - Lvkang Biotech's recent capital operations, including the divestiture of its photovoltaic film business, may be aimed at clearing obstacles for future transactions [9] - The company signed an asset transfer agreement on April 24, 2025, to sell all assets and liabilities related to its photovoltaic film business to a joint venture established by its shareholders [9] - The potential for a backdoor listing or tri-party transaction remains uncertain, with regulatory hurdles and the urgency of maintaining its listing status complicating the situation [9]