Share Prices Plummet: Lehua Entertainment Group in Crisis
On January 16, Lehua Entertainment Group saw their share price plummet over 80% in Hong Kong, reaching a new low since being listed on the Hong Kong Stock Exchange. This marks an 81% decrease in their stock price this week alone. Performance data for the first half of 2023 showed a significant decrease in revenue and a loss of approximately 176 million yuan. The adjusted net profit also decreased by 70.4%, pointing to a troubling financial situation for the company.
Lehua Entertainment was listed on the Hong Kong Stock Exchange on January 19, 2023, and had introduced a number of cornerstone investors who subscribed a total of US$19.9 million. Yan Zhaojun, a strategic analyst at Zhongtai International, speculated that the recent drop in share price may be due to impending lifting of the lock-up period for these cornerstone investors, prompting them to sell off shares in advance.
In response to the crisis, Lehua Entertainment released a statement on January 16 assuring that the company is operating normally and the board of directors has full confidence in the group’s future development prospects. They also made it clear that none of the directors holding shares have acted directly or indirectly, voluntarily or involuntarily. sell or otherwise dispose of their respective interests in the Company.
In other news, Mixue Bingcheng has suspended its bottled beverage business due to current product adjustments. Zhang Xuefeng has pledged to donate 1 million yuan to Harbin University of Science and Technology for the tuition fees of first-year students from poor families. Additionally, Huawei Chairman Zhu Huarong announced that Huawei will not engage in the vehicle business.
Meanwhile, Goldman Sachs Group reported a fourth-quarter revenue of US$11.32 billion, surpassing market expectations.
Additionally, Fujian Provincial Government Investment Fund completed the registration of private equity investment funds with the China Securities Investment Fund Industry Association, with a registered capital of 10 billion yuan.
Finally, CATL and BYD are pushing for a cost reduction in power batteries, aiming to drive the price down to 0.3 yuan/Wh. This is just one example of the ongoing price war in the power battery industry. As the 2024 Spring Festival Transport season approaches, the retail and catering industries are preparing for an increase in demand, with Chinese people’s travel and consumption needs continuing to rise.
This article comes from the investment community and the original text can be found at: https://news.pedaily.cn/202401/528692.shtml