Longhui Intl (01007) continued to fall by 20%, with the stock plummeting on heavy volume yesterday, and the closing decline expanded to 90%.
It was learned from the Wallstreetcn APP that Longhui Intl (01007) continued to fall by 20%, with the stock plummeting on heavy volume yesterday, and the closing decline expanded to 90%. It is worth noting that the stock has experienced price fluctuations since the end of March this year. From March 27 to July 26, the company's stock price rose from HKD 0.59 per share to HKD 4.74 per share, with a cumulative increase of more than seven times during this period. As of the time of publication, it had fallen by 20.29%, to HKD 0.275 per share, with a turnover of HKD 3.5181 million.
In the article '90% plunge, Longhui Intl Group (01007) Shockingly Reveals "Pig Slaughter Tactics"?', Wallstreetcn APP analyzed that the trend of Longhui Intl Group's sustained rise and sudden plunge in a short period of time cannot but remind people of the "pig slaughter tactics" commonly used by stock sharks. The company is a typical "small market cap stock." As of the close of August 7, the total market cap of Longhui Intl Group was only HKD 0.1698 billion. At the same time, the company's equity is highly concentrated. According to Choice data disclosure, as of December 31, 2023, the top three shareholders of Longhui Control were Ruize Group Co., Ltd., Su Jincun, and Yuan Mingjie, with shareholding ratios of 50.15%, 0.9%, and 0.71%, respectively. The largest shareholder's shareholding ratio is as high as 50%.
In addition, the company's fundamentals are poor and it is in a negative asset state. In the short term, although the company's performance improved in 2023, looking at a longer timeline, the overall fundamentals of Longhui Control are still lacking. From 2021 to 2022, the company's revenue was CNY 1.63 billion and CNY 0.72 billion, respectively, and its performance was quite volatile. The corresponding net losses during this period were CNY 0.34 billion and CNY 0.62 billion, respectively, and it has been in a perennial loss state. As of December 31, 2023, the total liabilities of Longhui Control were CNY 0.236 billion, total assets were CNY 0.045 billion, and net assets were -CNY 0.191 billion.