After more than three months, Shaoneng Co., Ltd. will once again "trim down" its assets: planning to sell a dormant subsidiary at a premium of over 100%, expected to add approximately 12 million yuan to the company's net profit attributable to shareholders.

Everyday Business News reporter: Wu Zepeng Everyday Business News editor: Yang Jun

More than three months later, Shaoneng Co., Ltd. (SZ000601, share price 7.80 yuan, market capitalization 8.3B yuan) has once again “downsized” its underlying assets.

On the evening of March 27, Shaoneng Co., Ltd. announced that its controlling subsidiary, Shaoneng Group Shaoguan Hongda Gear Co., Ltd. (hereinafter referred to as Hongda Company), had on March 26 signed an agreement with Changyi Machinery Manufacturing Co., Ltd. of Wuguang District, Shaoguan City (hereinafter referred to as Changyi Company). Under the agreement, it plans to transfer 100% of the equity interests in its wholly owned subsidiary, Shaoguan Hongda Precision Forging Co., Ltd. (hereinafter referred to as Hongda Precision Forging), for a price of 29.20 million yuan.

A reporter from The Daily Economic News noted that Hongda Precision Forging has been in a loss-making state in recent years. The valuation report states that the company is currently suspended from operations. However, after the valuation, Hongda Precision Forging’s net assets recorded an appreciation of more than 100%. After this transaction is completed, it is expected to bring Shaoneng Co., Ltd. approximately 12.00 million yuan in net profit attributable to the parent company.

In fact, this is not the first time Shaoneng Co., Ltd. has recently reactivated assets. On December 5, 2025, the company issued an announcement stating that it would publicly list and transfer 15 properties located in the urban area of Shaoguan City that it owns, with a total appraised value of 195.3k yuan.

Total consideration for the target transfer is 29.20 million yuan

According to the announcement, the target of this transaction is Shaoneng Co., Ltd.’s controlling-level subsidiary’s—Hongda Precision Forging—100% equity interest. Based on the relevant audit and valuation reports, the two parties agreed and determined the total consideration for the equity transfer to be 29.20 million yuan.

The financial data disclosed in the announcement show that in recent years the operating condition of Hongda Precision Forging has not been ideal. Among them, in 2025 it achieved operating revenue of 195.3k yuan and a total profit (loss) of negative 274k yuan; while in 2024 the company did not achieve operating revenue, and its total profit (loss) was negative 529.5k thousand yuan.

(Listed company announcement screenshot)

A reporter from The Daily Economic News found that although the target company has continued to incur losses, its asset valuation achieved a high premium. Based on the audit, as of December 31, 2025, Hongda Precision Forging’s net assets were 14.1148 million yuan. Using the asset-based approach for valuation, the value of all shareholders’ equity was 28.3792 million yuan. The assessed appreciation was 14.2644 million yuan, with an appreciation rate as high as 101.06%.

The reporter learned from the asset valuation report simultaneously disclosed by Shaoneng Co., Ltd. that the assessed appreciation mainly came from two items: investment real estate and non-current liabilities. Among them, the book value of investment real estate was 9.8871 million yuan, and the appraised value reached 17.9585 million yuan, representing an appreciation rate of 81.64%. In addition, the book value of non-current liabilities was 6.8458 million yuan, and the appraised value was 0 yuan.

(Listed company announcement screenshot)

The appreciation of investment real estate comes from the appreciation of buildings and land-use rights. Non-current liabilities are deferred income. Shaoneng Co., Ltd. explained that this portion is government policy-related subsidies used for capital for plant-area building and equipment construction. It has completed acceptance, and the company does not need to return the funds to the government or any third party. There is no existing repayment obligation in practice.

As for the transaction counterparty, Shaoneng Co., Ltd. described in its announcement that Changyi Company has no related-party relationship with Shaoneng Co., Ltd. and its controlling subsidiary Hongda Company.

This is not the first time the company has sold assets recently

For the sale of the suspended-operation subsidiary this time, Shaoneng Co., Ltd. stated that based on the company’s preliminary calculations by its finance department, it is expected to increase the net profit attributable to owners of the parent company by approximately 274k yuan. The purpose of this transaction is to “focus on core business development, optimize the business structure, and reactivate idle assets.”

A reporter from The Daily Economic News found that this is not the first time Shaoneng Co., Ltd. has sold assets recently. On December 5, 2025, the company had issued an announcement proposing to publicly list and transfer 15 properties under its ownership located in the urban area of Shaoguan City. According to the announcement at that time, the book net value of the 15 properties as of September 30, 2025, was approximately 5.7334 million yuan, and the appraised value was 16.5470 million yuan, which also showed a relatively large appreciation.

However, because the transaction method for the 15 properties was public listing and transfer, the final transaction price could not be determined, and Shaoneng Co., Ltd. also did not provide information on the impact on profit from the transaction. At present, the reporter has not found any follow-up progress announcement from Shaoneng Co., Ltd. regarding this transaction matter.

(Listed company announcement screenshot)

According to the announcement, Shaoneng Co., Ltd. currently has three business segments: clean and renewable energy, precision (intelligent) manufacturing, and ecological plant fiber. In early February, Shaoneng Co., Ltd. proposed what it said was the first departmental system reform since its listing. It respectively established the tableware business division, the precision (intelligent) manufacturing business division, and the heat and power business division.

One major background to Shaoneng Co., Ltd.’s frequent asset disposal is that in the second half of last year, the company announced that after the completion of the non-public issuance of shares, it would end its many-year status without any controlling shareholder and without an actual controller, and the actual controller would be changed back to Shaoguan Municipal SASAC. Going further back, Shenzhen International Holding Insurance Co., Ltd. had purchased Shaoneng Co., Ltd.’s shares through the centralized bidding trading system on the Shenzhen Stock Exchange, and in August 2015 became the company’s largest shareholder.

The Daily Economic News