No bidders stepped forward in the first round of listings, prompting a 10% cut to the reserve price! A company holding legacy licenses is selling its subsidiary.

On the evening of November 5, Jiu Liang Co., Ltd. announced a price reduction and relisting. The announcement stated that the company listed 100% equity of Guangzhou Jiuliang Small Household Appliances Co., Ltd. (hereinafter referred to as the Small Appliances Company) on the Wuhan Optics Valley United Property Exchange. After the announcement period expired, no prospective transferees registered to participate in the acquisition of the target asset. Consequently, the company lowered the reserve price from RMB 455.6877 million to RMB 410.1190 million and initiated a second listing round.

Looking back at the transfer process, the company conducted preliminary disclosure of information regarding the transfer of 100% equity in the Small Appliances Company on the Wuhan Optics Valley United Property Exchange (hereinafter referred to as the Exchange) from June 4 to July 2, 2026, followed by formal disclosure from October 9 to November 4, 2026. The initial reserve price for the first listing was RMB 455.6877 million.

To facilitate this equity transfer smoothly, in accordance with relevant regulations and authorizations, and following deliberation by the General Manager’s Office Meeting, the company adjusted the reserve price for transferring 100% equity in the Small Appliances Company from RMB 45,568.77 million to RMB 41,011.90 million (a 10% reduction from the initial listing price, but not lower than 90% of the assessed value), and commenced the second public listing on the Exchange on November 5, 2026 (listing period: November 5 to November 11, 2026).

Jiu Liang Co., Ltd. stated that this adjustment to the listing price will help the company improve asset utilization efficiency, optimize its asset structure, concentrate resources on strategic development sectors, enhance overall asset quality, strengthen sustainable development capabilities and profitability, and positively impact the company’s production, operations, and business growth. This proposed equity transfer is conducive to accelerating capital recovery and improving capital efficiency, and does not harm the interests of the company or all shareholders.

Centered around its core brand “DP Jiuliang,” Jiu Liang Co., Ltd. has been deeply engaged in the LED lighting application industry. It currently offers product lines primarily focused on LED portable lighting and LED home lighting, including LED emergency lights, flashlights, camping lights, headlamps and spotlights, LED desk lamps, LED bulbs, ceiling lights, electric mosquito swatters, electric fans, and more. In recent years, the company has expanded into portable energy storage products, such as portable power banks.

In terms of performance, Jiu Liang Co., Ltd. has reported net losses for many years. According to its 2025 annual report, total operating revenue was RMB 301 million, down 30.18% year-on-year; net profit attributable to owners of the parent company recorded a loss of RMB 61.1939 million, with losses expanding by more than double compared to the previous year. In the first three quarters of 2026, operating revenue reached RMB 203 million, a decrease of 10.04% year-on-year; net profit attributable to owners of the parent company was -RMB 47.8511 million, compared to -RMB 47.5425 million in the same period last year.

Specifically, the Small Appliances Company reported operating revenue of RMB 10.4697 million and net profit of RMB 110,800 in 2024; in 2025, operating revenue fell to RMB 6.3147 million while net profit turned negative at -RMB 263,100. Additionally, the appraisal report disclosed that as of February 28, 2026, its total assets amounted to RMB 459.5935 million, liabilities stood at RMB 4.4265 million, and net assets were RMB 455.1670 million. The appraisal report specified that its non-current assets include land use rights located at No. 13 Xingshan Middle Road, Baiyun District, fixed assets comprise factory buildings and dormitories, and inventory mainly consists of electric kettles, hair dryers, and other products.

In search of a second growth curve, Jiu Liang Co., Ltd. is accelerating its transformation from traditional lighting to the new energy sector through capital maneuvers—“acquiring energy storage and selling small appliances.” In September this year, the company intends to acquire no less than 51% equity in Shandong Haidi New Energy Technology Co., Ltd. (hereinafter referred to as “Haidi New Energy”) by paying cash, with a transaction price not exceeding RMB 275.4 million.

According to available information, Haidi New Energy’s core business involves the research, development, production, and integrated sales of lithium battery power systems and energy storage systems. It can provide customers with customized, highly reliable energy storage solutions. The company is a national-level “Little Giant” enterprise specializing in niche fields, as well as a “Gazelle” and “Tech Little Giant” enterprise in Shandong Province. It operates a provincial-level enterprise technology center R&D platform, and its products are sold in overseas markets including Europe, the Americas, Southeast Asia, and the Middle East. Haidi New Energy masters core technologies across the entire value chain—from BMS and PACK to complete energy storage systems—and its patent portfolio covers key links in system integration.

Upon completion of the transaction, Jiu Liang will extend its reach from portable energy storage into higher value-added applications such as commercial and industrial energy storage, outdoor power energy storage, and power batteries for RVs and yachts. As of late October, the transaction due diligence had not yet been completed, and the deadline for signing formal agreements was extended to before November 30.

The company stated at the time that Jiu Liang Co., Ltd. consistently focuses on its core business and systematically plans industrial transformation and upgrading, with key investments directed toward strategic emerging industries such as automotive components, new energy, and high-end equipment manufacturing, which offer broad market space and long-term growth potential.

While discount-selling heavy assets and making large-scale external acquisitions simultaneously, Jiu Liang’s transformation roadmap is quite clear. However, uncertainties remain along the way: it is still unclear whether the second listing of the Small Appliances Company will again result in a failed auction, and the RMB 410 million listing threshold continues to demand strong financial capacity from buyers; the RMB 275.4 million cash acquisition will also impose considerable financial pressure. Meanwhile, the transaction includes a performance commitment requiring cumulative non-recurring net profits of no less than RMB 170 million between 2026 and 2028. Whether this commitment can be successfully fulfilled after Haidi New Energy is consolidated remains to be seen.