A former actual controller of an LED company is embroiled in litigation disputes; all shares will be subject to judicial auction!

On February 13, Qingshang Shares (002638) announced that the 88.18 million shares directly held by former actual controller Li Xuliang will be judicially auctioned from March 18 to 19, 2026, accounting for 100% of his holdings and 6.21% of the total share capital after excluding shares in the company's dedicated repurchase account.

The reason for this auction is litigation disputes.

As of the date of this announcement, Li Xuliang directly holds 88.18 million shares, all of which have been entrusted to the company's controlling shareholder, Dongguan Jingtengda Enterprise Management Partnership (Limited Partnership), to exercise voting rights.

Qingshang Shares stated that if the shares in this auction are ultimately judicially disposed of, Jingtengda's voting shares in the company will decrease to 225 million shares, accounting for 15.81% of the total share capital after deducting shares held in the company's repurchase special account. The auction matter is currently in the public notice stage, and the auction results remain uncertain.

The announcement states that this judicial auction matter will not result in a change in the company's control rights and will not affect the company's normal production and operation.

Qingshang Shares originated from Qingshang Optoelectronics, with main businesses including the research, development, production and sales of smart lighting, outdoor lighting, landscape lighting, and outdoor courtyard lighting products. It listed on the A-share market in December 2011; in that year, the company's net profit was 125 million yuan. In recent years, the company's operating performance has frequently declined. In 2014, the net profit attributable to shareholders of the listed company was 12 million yuan, while the non-recurring net profit recorded its first loss.

On January 31, Qingshang Shares released its full-year earnings forecast for 2025. The company expects a loss for the period from January to December 2025, with net profit attributable to shareholders of the listed company ranging from -347 million to -271 million yuan. Net profit decreased by 39.16% to 8.68% year-on-year. Basic earnings per share are expected to be between -0.24 and -0.19 yuan.

Regarding the reasons for the increase in losses, the company stated that it was mainly due to losses from project disposal, losses from invested enterprises, impacts from exchange rates and wealth management returns, and asset impairment losses. During the reporting period, the company disposed of the construction project (including land use rights) of its subsidiary Shanghai Aozhan, resulting in a disposal loss of approximately 117 million yuan, forming non-operating income/expense for this period. During the reporting period, the associate enterprise Yuguang Lighting, in which the company made external investments, was in a state of continuous loss, and an investment loss of approximately 104 million yuan was recognized for this period, forming operating income/expense for this period.

Furthermore, during the reporting period, the company incurred increased exchange losses due to the continuous appreciation of the RMB; with bank deposit interest rates continuously declining, interest income from bank deposits and returns from bank wealth management products decreased. The cumulative effect of these factors reduced operating profit for the current period by approximately 28 million yuan. The company conducted a comprehensive review of all asset categories as of the end of the reporting period. For assets showing potential signs of impairment, the company further analyzed their status and the prevailing market environment. Based on the prudence principle, the company recognized an estimated credit loss provision of approximately 11.1 million yuan in the current period and reversed asset impairment losses of 22 million yuan.