Deyi Cultural and Creative plans to raise no more than 103 million yuan through a private placement! The company's previous fundraising project has been progressing slowly, and the company's chairman and general manager have cashed out over 28 million yuan.

Everyday Economic News Reporter | Zhang Guangri Everyday Economic News Editor | Wu Yongjiu

Deyi Cultural and Creative recently announced plans to raise no more than 102.3 million yuan through a private placement. The “Daily Economic News” reporter (hereinafter referred to as the “Everyday Reporter”) found that the core projects involved in the company’s 2020 and 2022 private placement plans have been progressing slowly, with some even terminated.

Meanwhile, the fundamentals of Deyi Cultural and Creative present a complex picture: net profit excluding non-recurring gains and losses has declined sharply for three consecutive years, but revenue in 2025 hit a new high; in the first quarter of 2026, several well-known foreign institutions became its top ten shareholders, while at the same time, the company’s chairman and general manager reduced their holdings for cashing out, totaling over 28 million yuan.

Previous Private Placement Projects Progressed Slowly

On the evening of May 8, 2026, Deyi Cultural and Creative issued a plan for a simplified private placement to specific targets for 2026. The plan shows that because the previous fundraising exceeded 30% of the total amount of the last round of fundraising, the company has reduced the excess amount of 43.25 million yuan from the total amount of this round of fundraising. After adjustment, the company’s total planned fundraising amount does not exceed 102.5205 million yuan (including this amount). After deducting related issuance costs, the funds will be allocated to the following projects: 1) Cross-border business capability enhancement project, with 72.5205 million yuan to be used; 2) Supplementary working capital, with 30 million yuan to be used.

(Image source: Screenshot from Deyi Cultural and Creative announcement)

Since 2020, Deyi Cultural and Creative has successfully implemented two private placement plans. The verification report on the use of the previous fundraising shows that in 2020, the company raised approximately 330 million yuan net through private placement, used for the “IP Product and Operation Center Project,” “Big Data Marketing Management Platform Construction Project,” and to supplement working capital; in 2022, the company raised about 126 million yuan net, used for the “Digital Display Center and Smart Retail Terminal Construction Project” and to supplement working capital.

However, the progress of the first two private placement plans was not smooth, with core projects delayed, and some projects even terminated.

In February 2024, the company postponed the “IP Product and Operation Center Project” and the “Big Data Marketing Management Platform Construction Project” to be operational by December 31, 2025.

In July 2024, the company changed the use of 39.7556 million yuan of funds from the “Smart Retail Terminal Construction” part of the “Digital Display Center and Smart Retail Terminal Construction Project” to permanent supplement of working capital, and postponed the “Digital Display Center Construction” part of the same project to be operational by December 31, 2025.

In July 2025, the company terminated the “Big Data Marketing Management Platform Construction Project,” reallocating the remaining fundraising of 20.9922 million yuan to the “IP Product and Operation Center Project,” which was postponed to be operational by October 31, 2026.

In October 2025, the “Digital Display Center Construction” part of the project was postponed to be operational by April 30, 2026.

As of December 31, 2025, the progress of the “IP Product and Operation Center Project” and the “Digital Display Center and Smart Retail Terminal Construction Project” was 77.80% and 75.97%, respectively.

Net Profit Excluding Non-recurring Gains and Losses Declined Significantly for Three Consecutive Years

Deyi Cultural and Creative is a comprehensive supplier of cultural and creative home products, providing R&D design, outsourcing manufacturing, and global sales services for domestic and international clients. The main products are creative home living items, roughly divided into three categories: creative decorations, leisure daily necessities, and fashionable small furniture. The company is export-oriented, with over 95% of its main business revenue from exports from 2023 to 2025, mainly serving customers in Europe and America.

Over the past three years, the company’s net profit excluding non-recurring gains and losses has continued to decline sharply. According to Tonghuashun, from 2022 to 2025, the company’s net profit excluding non-recurring gains and losses was approximately 43.5M yuan, 24.78M yuan, 17.34M yuan, and 8.39M yuan, respectively. In the first quarter of this year, the company achieved a net profit excluding non-recurring gains and losses of 931.9k yuan, a year-on-year decrease of 71.89%. However, in 2025, the company’s operating revenue reached a new high of 931.9k yuan.

Meanwhile, the “cash content” of Deyi Cultural and Creative’s net profit is not high. Tonghuashun shows that from 2023 to 2025, the company’s operating cash flow net amounts were approximately 1.05B yuan, -21.0748 million yuan, and 3.6062 million yuan. As of March 31, 2026, the company’s cash on hand was about 88.1747 million yuan, while short-term loans reached approximately 196 million yuan.

Why has the company’s net profit excluding non-recurring gains and losses continued to decline sharply? The latest private placement plan shows a total project investment of about 192 million yuan, but the planned fundraising is only 103 million yuan. With limited cash on hand, how will the company address the remaining funding gap? Given the poor progress of the previous two projects, how can the company ensure the progress and benefits of the new projects? The “Everyday” reporter sent these questions to Deyi Cultural and Creative’s securities department, but as of press time, no reply has been received.

Foreign Institutions Continue Buying, Chairman Cashes Out About 25.8 Million Yuan

In the past two years, Deyi Cultural and Creative’s stock price has shown wide fluctuations but with a generally upward trend. Calculated on a pre-adjusted basis, the highest stock price in December 2025 was 10.69 yuan, but it weakened again afterward.

However, in the first quarter of this year, several foreign institutions increased their holdings in Deyi Cultural and Creative. Tonghuashun shows that as of March 31, 2026, ARCLAYS BANK PLC increased its shareholding to 0.95%, ranking fourth among shareholders; UBS AG and J.P. Morgan Securities PLC - proprietary funds (J.P. Morgan Group) entered the top ten shareholders for the first time, with holdings of 0.88% and 0.59%, respectively, becoming the sixth and eighth largest shareholders.

Unlike the foreign institutions increasing their holdings, in the first quarter of this year, the company’s chairman and general manager both implemented reduction plans.

On January 23 and February 10, 2026, Wu Tifang, the controlling shareholder, actual controller, and chairman, reduced a total of 3.1099 million shares through centralized bidding (including after-hours fixed-price trading), cashing out about 25.8 million yuan. After this reduction, Wu Tifang still holds 33.32% of Deyi Cultural and Creative. The 2025 annual report shows that Wu Tifang received a pre-tax remuneration of 395.7k yuan from the company in 2025.

On January 28, 2026, Ouyang Jun, the general manager, reduced 300k shares through centralized bidding, at an average price of 7.80 yuan, with a cash amount of 2.34 million yuan. After this reduction, Ouyang Jun still holds 1.2819 million shares, accounting for 0.4122% of the company’s total shares. The 2025 annual report shows that Ouyang Jun has served as general manager since January 8, 2024, and received a pre-tax remuneration of 387k yuan in 2025.

As of May 11, 2026, Deyi Cultural and Creative’s closing price was 7.99 yuan, with a market value of about 33.75M yuan, and a forward P/E ratio of 241.60 times.