Breaking News! Suda Speed Co., Ltd. Chairman Li Xiyuan Placed Under Detention in Another Jurisdiction; Company Listed for Only 1.5 Years, Received Warning Letter from Securities Regulatory Bureau in Early March

Everyday Economic News Reporter | Cai Ding Everyday Economic News Editor | Liao Dan

Suda Co., Ltd. (SZ001277, stock price 39.96 yuan, market value 3.037 billion yuan) announced that the company received a notice from the Bengbu City Bengshan District Supervision Committee, informing that its actual controller and chairman, Li Xiyuan, was placed under detention on March 13.

In the announcement, Suda Co. stated that as of the disclosure date, other directors and senior management are performing their duties normally, control has not changed, and production and operations are normal. Li Xiyuan’s detention will not have a significant impact on the company’s daily operations. Currently, the company has not received any investigation or cooperation documents from authorities, and the progress and conclusions of the detention investigation are unknown. The company will continue to monitor the situation and fulfill its disclosure obligations promptly.

Received Warning Letter from Henan Securities Regulatory Bureau at the beginning of the month

Public information shows that Li Xiyuan was born in 1973. In 1996, he joined Guangzhou Mechanical Science Research Institute (formerly Mechanical Industry Ministry Guangzhou Machine Tool Research Institute) as a technician. This early technical background laid the foundation for his later involvement in the machinery service industry.

Around 2007, he keenly perceived that the aftermarket for coal mine machinery (maintenance, parts, etc.) lacked professional services. He then attempted to transfer his experience in the engineering machinery parts sales industry to the coal machinery field, which became the original intention of founding Suda Co.

The “Daily Economic News” reporter (hereinafter referred to as the “Econ Reporter”) noted that Li Xiyuan is a “veteran” figure in Suda Co. In 2009, Li Xiyuan, Zhengzhou Coal Mining Machinery (now Zhongchuang Zhiling, SH601717), Jia Jianguo, and Li Yousheng jointly invested to establish Suda Limited (the predecessor of Suda Co.), with an initial registered capital of 10 million yuan. Li Xiyuan and Zhengzhou Coal Mining Machinery each held 40%, making them the largest shareholders. Li Xiyuan served as director and general manager of Suda Limited from September 2009 to September 2014, and from September 2014 to April 2021, he was chairman and general manager of Suda Co. Since April 2021, he has been chairman.

Just two weeks ago, on March 2, the listed company and Li Xiyuan received a warning letter from the Henan Securities Regulatory Bureau. The violation was due to lapses in managing idle raised funds—after the shareholder meeting authorization expired (after October 23, 2025), the company continued to purchase financial products with idle funds without board approval, and failed to fulfill disclosure obligations.

Transition from Growth Enterprise Board to Shenzhen Main Board after Rejection

It should be noted that Suda Co. is a listed company based in Zhengzhou, Henan Province, but the announcement indicates that Li Xiyuan was detained by the Supervisory Committee in Bengbu, Anhui Province.

The Econ Reporter also noted that Suda Co. was established in July 2009 and listed on the Shenzhen Main Board on September 3, 2024, about a year and a half after its listing. In its first year of listing (2024), the company experienced a “double decline” in revenue and net profit attributable to shareholders—revenue fell 6.89% to 1.1667 billion yuan, and net profit fell 13.56% to 140 million yuan.

In fact, Suda Co.’s listing journey was not smooth: in January 2021, its initial attempt to list on the ChiNext was rejected due to issues related to related-party transactions and sustainable independent operation capabilities. However, Li Xiyuan did not give up and led the company to switch to the Shenzhen Main Board. On September 3, 2024, Suda Co. finally successfully listed (issue price 32 yuan), raising over 500 million yuan.

According to Suda Co.’s 2025 semi-annual report, the company’s main business belongs to the industrial service industry for mechanical equipment, mainly focusing on the aftermarket for coal comprehensive mining equipment, serving coal production enterprises. The company is one of the larger professional providers of coal mine machinery aftermarket services in China. Recognized by the China Coal Machinery Industry Association, from 2022 to 2024, the company ranked first in market share in hydraulic support repair and remanufacturing markets.

In the secondary market, data from Eastmoney shows that Suda Co.’s stock price dropped more than 1% in early trading today, but recovered and turned positive in the afternoon, closing up 0.25%. The total trading volume was 30.38 million yuan, with a turnover rate of 1.68%.

Cover image source: Everyday Economic News Media Library