A single "fire sale" announcement has made Canny Elevator the focus of the Industry.

On the evening of December 26, Canny Elevator announced plans to sell parts of its Real Estate to further activate existing Assets, optimize asset structure, and improve Asset Operation efficiency.

The announcement shows that this sale involves 62 properties located in multiple provinces, including Chongqing, Jiangsu, Zhejiang, Jiangxi, Anhui, and Henan, with a total area of 6269.44 square meters. The original value of the properties was 64.503 million yuan, and the current book value is 45.2261 million yuan, accounting for 1.31% of the company’s audited Net income for 2023.

Canny Elevator stated that the proposed sale of parts of its Real Estate is related to the company’s Operational reform, aimed at activating Assets, disposing of some low-efficiency Assets, recovering Cash, and improving capital utilization. This Trade aligns with the company's Global Strategy and is a normal Operating behavior that does not harm the interests of the company and its Shareholders, especially minority Shareholders, and does not affect the company’s normal production and operation.

In the first three quarters, revenue and Net income both declined.

Public information shows that Canny Elevator was established in 1997, with main Business including the research, development, production, sales, and maintenance of elevators, escalators, and parts. It was listed on the Shenzhen Stock Exchange in March 2010.

In recent years, the company's overall operating performance has shown a downward trend, with revenue and net income attributable to shareholders declining by 17.93% and 19.6% respectively in the first three quarters of 2024. Looking at the quarterly data, the revenue for the third quarter was 1.019 billion yuan, a year-on-year decrease of 16.72%, and net income attributable to shareholders was 0.106 billion yuan, a year-on-year decrease of 12.34%.

In addition, by the end of the third quarter, the company's operational cash flow had decreased significantly by 54.75% to 0.259 billion yuan, primarily due to the impact of the overall situation in the real estate industry on the company, which affected sales and cash collection; on the other hand, the amount due for the bank acceptance bills issued by the company last year was quite large this period.

From a financial perspective, Canny Elevator's main purpose for selling properties is to recover cash, enhance capital utilization, align with the company's Global Strategy, and is expected to have a positive impact on the company's financial condition and operating results.

However, Canny Elevator's main business has been significantly affected by the weakness in the real estate market. According to earnings report data, Canny Elevator's revenue and net income both declined in 2022 and 2023, mainly due to the sluggish real estate market leading to a slowdown in elevator demand.

Multiple property sales.

To optimize asset structure and resource allocation, and improve the efficiency of the company's idle asset utilization, Canny Elevator is "taking continuous action."

It has been found that Canny Elevator has previously "dumped" assets multiple times.

In 2019, Canny Elevator sold part of its real estate through a property agency and completed the transfer procedures.

In 2020, Canny Elevator sold 16 properties in cities such as Wuhu, Yingkou, and Suzhou.

On March 28, 2024, Canny Elevator announced plans to sell 4 properties in Zhengzhou.

On November 15, 2024, Canny Elevator issued an announcement stating plans to sell 100% equity of its subsidiary Guangdong Canny Elevator Co., Ltd., with the equity transfer price provisionally set at approximately 0.343 billion yuan.

In December 2024, Canny Elevator announced once again its intention to sell some real estate, this time involving 62 properties.

In the secondary market, on December 27, Canny Elevator saw a slight increase, rising 2.31% to 7.09 yuan/share, with a latest market cap of 5.663 billion yuan.