Yuanguang Gu welcomes a "Post-90s" Secretary! Last year's investment income significantly improved net profit, yet the actual controller announced two share reduction plans within half a year!

Recently, the secretary of Yuanguan Valley, who has served for nearly 10 years, resigned, and the successor is a “post-90s” generation. Due to significant improvement in investment returns, Yuanguan Valley’s net profit reached 145 million yuan in the first three quarters of 2025. However, the company’s core net profit still remains in a loss. In the past six months, the company’s actual controller has announced two share reduction plans.

Long-serving secretary for nearly 10 years, new secretary is a “post-90s” generation

Yuanguan Valley’s strategic positioning is to become a world-class provider of IoT solutions centered on Radio Frequency Identification (RFID) technology, adhering to a strategy of combining internal growth with external expansion.

Recently, there has been a change in Yuanguan Valley’s board secretary. On the evening of February 24, 2026, Yuanguan Valley announced that a resignation notice was issued for a director and the board secretary position. The announcement states that Malin has applied to resign from the roles of director and board secretary. According to Yuanguan Valley’s 2024 annual report, Malin has served as the company’s board secretary since April 22, 2016, with her term ending on February 13, 2028. In 2024, she received a total pre-tax compensation of 496,700 yuan from the company.

Malin, female, born in 1974, graduated from Xi’an Jiaotong University, and has previously worked at Shenzhen Dasheng Investment Co., Ltd. and the Shenzhen Office of Tsinghua University School of Economics and Management. She has been with Yuanguan Valley since 2006.

The new board secretary of Yuanguan Valley is a “post-90s” generation. The announcement shows that, upon nomination by the chairman and approval by the nomination committee of the board, the board agreed to appoint Fan Yushuxin as the new board secretary.

Fan Yushuxin, female, born in 1990, previously served as a securities affairs representative and investor relations officer at Wote Shares, a listed company on the A-share market; she also served as the director of the secretary’s office and securities affairs representative at Kangguan Technology, another A-share listed company.

Investment gains drive performance improvement, but sustainability is uncertain

The increase in investment income has significantly boosted Yuanguan Valley’s net profit. According to Tonghuashun, in the first three quarters of 2025, Yuanguan Valley achieved a net profit of 145 million yuan, a year-on-year increase of 128.50%. However, the company’s core net profit remains in a loss, amounting to 10.26 million yuan.

Yuanguan Valley’s Q3 2025 financial report shows that the company’s investment income was approximately 76.465 million yuan, compared to about 13.737 million yuan in the same period of 2024. The main reasons for the sharp increase in investment income are: 1) higher investment income recognized under the equity method compared to the previous year; 2) increased gains from the disposal of trading financial assets.

In 2024, Yuanguan Valley’s net profit was 27.84 million yuan, and its core net profit was a loss of 1.36 billion yuan. If the company’s performance in the fourth quarter of 2025 improves or remains stable compared to the same period last year, its full-year performance in 2025 is expected to significantly improve over 2024. However, as of now, the company has not released a performance forecast for 2025.

The semi-annual report of Yuanguan Valley in 2025 indicates that its investment income is not sustainable. As of the end of June 2025, the company held shares in A-share Think Column and Hong Kong-listed Wapu Siry Metaverse, with fair values of approximately 343 million yuan and 11.0823 million yuan, respectively.

Yuanguan Valley’s initial investment in Think Column was zero. In the first half of 2025, Think Column contributed about 33.09 million yuan in fair value change gains to Yuanguan Valley. Additionally, the company sold about 88.78 million yuan worth of Think Column shares.

（Image source: Screenshot from Yuanguan Valley’s 2025 semi-annual report）

However, in the fourth quarter of 2025, Think Column’s stock price declined compared to the third quarter. Tonghuashun shows that on September 1, 2025, Think Column’s stock price peaked at 35.44 yuan, and by the end of 2025, its closing price was 27.82 yuan.

How did Yuanguan Valley’s investment income perform in the fourth quarter of 2025? Did the company continue to sell Think Column shares in the second half of 2025? Will Think Column’s stock price impact the company’s net profit in Q4 2025? The Daily Economic News sent these questions to Yuanguan Valley’s securities department email, but as of press time, no reply has been received.

Actual controller repeatedly announces share reduction plans; company releases private placement plan

In the second half of 2025, Yuanguan Valley’s actual controller announced two share reduction plans. According to relevant announcements, in July 2025, the company’s actual controller, Xu Yusuo, announced a plan to reduce holdings of no more than 7.397574 million shares (less than 1% of total shares). In December 2025, Xu Yusuo announced another plan to reduce holdings of no more than 22.192722 million shares (less than 3% of total shares).

The first reduction plan has been completed. From August 6 to October 20, 2025, Xu Yusuo reduced 7.14 million shares through centralized bidding, at an average price of 7.96 yuan, raising approximately 56.83 million yuan.

（Image source: Screenshot from Yuanguan Valley announcement）

The second reduction plan is ongoing. Between January 15 and January 22, 2026, Xu Yusuo reduced 5.289616 million shares through centralized bidding and block trades; on January 23, 2026, he further reduced 3.031303 million shares via block trade.

In the past two years, Yuanguan Valley’s stock price has generally shown a steady rebound. Using adjusted prices, the lowest stock price in 2024 was 3.26 yuan, and since the second half of 2025, it has remained above 7 yuan. As of February 25, 2026, Yuanguan Valley closed at 8.91 yuan, with a market capitalization of about 6.591 billion yuan.

In January this year, Yuanguan Valley announced a nearly 700 million yuan private placement plan, proposing to issue no more than 221,927,220 new shares (including this issuance), representing no more than 30% of the company’s total pre-issuance shares, aiming to raise no more than 690.6577 million yuan. After deducting issuance costs, all funds will be used for five major projects: 1) RFID electronic tag production line construction; 2) Innovation Industry Center construction; 3) RFID electronic tag chip process upgrade; 4) IoT smart terminal construction; 5) working capital supplementation.

（Image source: Screenshot from Yuanguan Valley announcement）

However, since listing, Yuanguan Valley has conducted six additional share issuances, with only one successful and four failures.

Why does the company’s actual controller continue to reduce holdings? Do they still believe in the company’s future? Under the background of private placement and share reduction, Yuanguan Valley’s stock price may face pressure. How should the company manage its market value? The Daily Economic News also sent these questions to Yuanguan Valley’s securities department, but no reply has been received as of press time.