The resumption of trading for Sichuan Huiyuan Optical Communications Co., Ltd. (000586) has been delayed, pushing back the revelation of its change in controlling ownership. If completed within the year, this would mark the second listed company in Sichuan to undergo a control shift in 2025.
On the evening of November 13, Huiyuan Communications announced that, following its November 12 trading halt notice regarding the planned control change, negotiations remain ongoing, and no definitive agreement has been signed. Consequently, the company expects it will not resume trading as initially scheduled on the morning of November 14, 2025.
According to the latest announcement, Huiyuan Communications has applied to the Shenzhen Stock Exchange for an extended trading suspension starting November 14, with the halt expected to last no more than three trading days. The specifics of the ownership change are anticipated to be disclosed by the close of trading on November 18.
A successful control transfer would end Huiyuan Communications' prolonged lack of a controlling shareholder. Currently, Beijing Dingyun Technology Development Co., Ltd. holds a 14.1% stake (27.27 million shares) as the largest shareholder, while Guangzhou Huifu Qiji Investment Partnership follows with a 13.75% stake (26 million shares). The company has operated without a de facto controller for an extended period.
While the identity of the new controller remains unknown, market participants and investors are more focused on whether the change will bring transformative solutions to the company’s longstanding operational challenges.
Financially, Huiyuan Communications has shown significant volatility in recent years. After reporting losses in 2024, the company rebounded in 2025. Third-quarter results revealed revenue of CNY 360 million for the first nine months, up 30.37% year-on-year, with net profit attributable to shareholders reaching CNY 14.76 million, marking a return to profitability. However, Q3 revenue grew just 9.04% year-on-year to CNY 125 million, down 16.3% quarter-on-quarter, while net profit surged 86.74% year-on-year to CNY 6.19 million, edging up 3.14% sequentially. Despite overall improvement, quarterly fluctuations have intensified.
Earlier this year, another Sichuan-based listed company, Xinzhong Co., Ltd. (002480), underwent a control transfer. On March 27, 2025, Shudao Group acquired stakes from Sichuan Development (Holdings) and Sichuan Development Rail Transit Industry Investment Co., Ltd. via a non-transferable share arrangement, becoming the controlling shareholder with a combined 24.5% stake. Post-takeover, Shudao Group initiated a restructuring in May, proposing to divest loss-making maglev and bridge component businesses while acquiring a 60% stake in Shudao Clean Energy via a share issuance and cash payment.
Though Xinzhong reported a net loss of CNY 42.29 million for the first three quarters, this represented a significant reduction year-on-year, with Q3 net profit improving sharply to CNY 25.41 million.
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