On October 20, Xi’An Typical Industries Co.,Ltd. (600302) announced a trading halt starting October 21, as it may undergo a change in control.
The company disclosed that it received a notification from its majority shareholder, Standard Group, stating that it is planning significant matters per the requirements of the actual controller, the Xi'an State-owned Asset Supervision and Administration Commission, and the Xi'an Industrial Investment Group Co., Ltd. This may result in a change in the company's control.
"Given that this matter is still in the planning and evaluation stage, there remains uncertainty," stated Xi’An Typical Industries. The company anticipates that the trading halt will not exceed two trading days.
Established Enterprise Xi’An Typical Industries is one of the major manufacturers of sewing machinery in China, providing comprehensive solutions and services to industries such as apparel, luggage, home furnishings, and automotive interiors, operating under the brands "Standard," "Weiteng," and "Hailing." It is the only state-owned listed company in the sewing equipment sector, with a current market capitalization of 2.6 billion yuan.
This year, driven by a robust export effect, China's sewing machinery product exports have been steadily increasing, while corporate performance has gradually improved. However, Xi’An Typical Industries reported only 185 million yuan in revenue for the first half of the year, a decline of 21.37% year-over-year, and a net loss attributable to shareholders of 8.52 million yuan.
The company noted that competition in the sewing equipment market is intense. Its operational targets for 2025 project revenues of 580 million yuan and a net profit of 710,000 yuan.
Seeking Transformation In this context, Xi’An Typical Industries has publicly emphasized the need to shift its development strategy—from being a single sewing equipment supplier to becoming a provider of systemic solutions and services in environmental and apparel sectors.
It is noteworthy that just this month, the company's chairman, Chang Hong, submitted a resignation letter due to work adjustments, stepping down from his roles as director and chairman of the Ninth Board of Directors, with his term originally set to expire in July 2026. Currently, the chairman position is vacant, with Vice Chairman Zhang Pengwu temporarily fulfilling this role. However, on the same day, the company’s board nominated Wang Kunyuan as a candidate for the Ninth Board of Directors. Born in March 1977, Wang is currently the Party Secretary and Chairman of China Standard Industrial Group Co., Ltd.
Diverse Assets of Major Shareholders It is also worth noting that the Xi'an Industrial Investment Group, the parent organization of Xi’An Typical Industries, has investments in multiple listed companies beyond Xi’An Typical Industries, including Shaanxi Guo Power, Western Superconducting Technologies Co., Ltd., and Tianli Co., Ltd.
As of the end of 2024, Xi'an Industrial Investment Group has 44 subsidiaries in various sectors, including industrial production, production services, asset management, and healthcare. In 2024, the Group achieved a revenue of 35.846 billion yuan, an industrial output value of 13.613 billion yuan, and a total profit of 1.007 billion yuan. The total assets of the Group amounted to 49.5 billion yuan, with net assets of 15.1 billion yuan.
Recently, Xi'an Industrial Investment Group held a third-quarter economic performance analysis meeting, where it mentioned carefully planning the development strategy, key projects, and priority tasks for the "13th Five-Year Plan" period, along with deepening state-owned enterprise reforms. During this meeting, responsible personnel from associated enterprises, including Shaanxi Guo Group and Standard Group, shared insights on ensuring stable growth, strategic transformation, technological innovation, market development, and risk prevention.
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