Southern Precision Engineering's shareholder Zhejiang Yinwan reduced their holdings by 5.6366 million shares, possibly also due to previous disclosure issues leading to shareholder compensation claims.

Ask AI · Does shareholder reduction imply a bleak outlook for Nanfang Precision Engineering?

Radar Finance Written by Yang Yang Edited by Li Yihui

On March 16, Jiangsu Nanfang Precision Engineering Co., Ltd. (stock abbreviation: Nanfang Precision, stock code: 002553) announced that the company recently received a notice of share reduction from its shareholder Zhejiang Yinwan Private Equity Fund Management Co., Ltd. - Yinwan Quanying No. 30 Private Securities Investment Fund. This shareholder reduced its holdings by 3,050,635 shares through centralized bidding transactions between February 2 and March 16, 2026, and further reduced 2,586,000 shares through block trading on March 16, totaling a reduction of 5,636,635 shares.

The reason for this reduction is the implementation of the reduction plan. After the reduction, the shareholder’s holding ratio decreased from 1.93% to 0.33%, while the total holding ratio of the company’s controlling shareholder and its concerted actors dropped from 40.00% to 38.41%.

This reduction plan has been disclosed in advance, will not lead to a change in the company’s control, nor will it have a significant impact on corporate governance and operations. The reduction plan has not yet been fully implemented.

It is noteworthy that Nanfang Precision may also face claims from shareholders due to information disclosure issues.

Song Lianmin, director of Jiangsu Shengheng Law Firm, which has represented many stock claims and compensations, told Radar Finance that if investors suffer losses due to improper behavior of the listed company, affected investors can seek compensation according to the law. Any affected investors who purchased Nanfang Precision shares between June 20, 2023, and July 5, 2023, and still held the shares at the close on July 5, 2023, can register for claims through the public account “Leizhu Bar” (Leizhu Code: 99). There are no fees before compensation.

Tianyancha data shows that Nanfang Precision was established on May 8, 1998, with a registered capital of 353,409,639 yuan. The legal representative is Shi Jianwei, and the registered address is Longxiang Road, Wujin High-tech Development Zone, Changzhou City. The main business is the research and development, manufacturing, and sales of various precision component products such as needle roller bearings, one-way clutches, one-way pulley assemblies, and mechanical parts.

Currently, the company’s chairman is Shi Jianwei, the secretary of the board is Wang Fang, and the number of employees is 1,172. The actual controllers are Shi Jianwei, Shi Wei, and Shi Juanhua.

The company has seven holdings, including Nanfang Bearing (Germany) GmbH, Jiangsu Nanfang Changsheng New Energy Technology Co., Ltd., Nanfang Yongning New Energy Vehicle Bearing (Zhejiang) Co., Ltd., Shanghai Zhencheng Microelectronic Technology Co., Ltd., Jiangsu Nanfang Automotive Compressor Bearing Co., Ltd., among others.

In terms of performance, the company’s operating revenue for 2022, 2023, and 2024 is 588 million yuan, 671 million yuan, and 784 million yuan, respectively, with year-on-year growth of -1.45%, 14.26%, and 16.80%. The net profit attributable to the parent company is 48.4855 million yuan, 27.2813 million yuan, and 24.3928 million yuan, with year-on-year growth rates of -75.29%, -43.73%, and -10.59%, respectively. During the same period, the company’s asset-liability ratios were 13.67%, 15.27%, and 19.87%.

Regarding risks, Tianyancha information shows that the company has 19 internal Tianyan risks, 83 surrounding Tianyan risks, 5 historical Tianyan risks, and 88 early warning Tianyan risks.