According to announcements disclosed by listed companies, since the beginning of 2025, at least 7 companies have allocated over 1 billion yuan for investment and wealth management. The seven companies - Leo Group, Fangda Carbon, Fujian Septwolves Industry Co., Ltd., Tapai Group, Lianfa Textile, Xiantan, and Zhejiang Yongqiang - each plan to use over 1 billion yuan for securities investment. Among them, Leo Group has the highest investment amount of up to 3 billion yuan, while Fangda Carbon and Fujian Septwolves Industry Co., Ltd. each plan up to 2 billion yuan.
For 2025, Fujian Septwolves Industry Co., Ltd. plans to use idle proprietary funds for securities investment, with a maximum limit of 2 billion yuan RMB for securities trading amounts (investment costs) at any point during the validity period. The usage period runs from the approval date at the company's 2024 annual shareholders' meeting until the convening of the 2025 annual shareholders' meeting, with this quota available for cyclical use during the validity period.
Fujian Septwolves Industry Co., Ltd. primarily engages in the design, production, and sales of "Septwolves" brand menswear and knitted products. In 2024, the company's net profit attributable to shareholders was 285 million yuan, up 5.35% year-on-year; however, the non-GAAP net profit was only 73 million yuan, down 60.86% year-on-year.
The reason for Fujian Septwolves Industry Co., Ltd.'s relatively low non-GAAP net profit attributable to shareholders is the 211 million yuan in non-recurring gains. In other words, 74% of the company's 2024 net profit attributable to shareholders came from non-core businesses, far exceeding profits from the core apparel business.
In 2024, Fujian Septwolves Industry Co., Ltd.'s "gains and losses from fair value changes of held financial assets and financial liabilities, as well as gains and losses from disposal of financial assets and financial liabilities" reached 236 million yuan.
The annual report shows that Fujian Septwolves Industry Co., Ltd. holds stocks including Tencent Holdings, CNOOC, PICC, China Mobile, China Shenhua, and Kweichow Moutai. In 2024, trading financial assets achieved fair value change gains of 206 million yuan. This means that the company's 2024 stock trading gains contributed the majority of its net profit.
Behind the surge in stock returns, Fujian Septwolves Industry Co., Ltd.'s revenue growth has stagnated for years. The company's 2024 revenue was 3.14 billion yuan, down 8.84% year-on-year, comparable to 2017 levels (3.085 billion yuan), having consistently hovered around the 3 billion yuan level for nearly 8 years. Non-GAAP net profit fell to levels from 17 years ago, with the company's 2024 non-GAAP net profit of only 73.47 million yuan, down 60.86% year-on-year, even lower than 2007 levels (81.95 million yuan).
In 2024, Fujian Septwolves Industry Co., Ltd. operated 879 directly-owned (including joint venture) stores and 925 franchised stores, totaling 1,804 stores. In 2024, the company's store count decreased by a net 27 stores.
Against the backdrop of stagnating revenue and shrinking channels, Fujian Septwolves Industry Co., Ltd.'s allocation of up to 2 billion yuan for securities investment (approaching 64% of 2024 revenue) rather than core business upgrades or new brand incubation has raised questions about a significant shift in strategic focus, being criticized as "neglecting core business."
Industry professionals believe that the "benefits" of listed companies engaging in stock trading are primarily reflected in performance supplementation functions. When core business growth is weak, securities investment returns often become an important means of beautifying financial statements. However, the "drawbacks" of this double-edged sword cannot be ignored, with performance volatility risk being the most prominent, as stock market uncertainties often lead to dramatic ups and downs in listed companies' performance.
To make the double-edged sword of listed company stock trading play a positive role requires multi-party cooperation in regulation. Regulatory authorities should improve institutional design, clarify proportional limits for listed companies' securities investments, require full disclosure of investment logic, risk control measures, and performance impacts, and strictly supervise excessive speculative behavior. Listed companies themselves should stick to their core businesses, treating investment as an auxiliary tool rather than core business, establishing scientific investment decision-making mechanisms and risk control systems, and avoiding blind following of market speculation. Investors need to rationally view investment returns, focusing on enterprises' core business competitiveness and sustainable development capabilities rather than being misled by short-term performance fluctuations.
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