Gongjin Plans Pre-Listing Sale of 100% Stake in Loss-Making Wenyuan Communications
Gongjin Co. announced on August 13 that it plans to pre-list the transfer of its 100% stake in wholly-owned subsidiary Shandong Wenyuan Communication Technology Co. , Ltd. at Shenzhen United Property and Equity Exchange, a disclosure intended to solicit interest rather than constitute a transaction. Wenyuan posted 2025 revenue of RMB 18.34 million and a net loss of RMB 73.04 million amid a sharp industry downturn since 2022. Gongjin shares hit the daily limit at RMB 15.96. First-quarter 2026 revenue rose 6.26% year-on-year and net profit attributable to parent grew 9.65%.
Gongjin Co. announced on the evening of August 13 that it intends to transfer its entire 100% equity stake in wholly-owned subsidiary Shandong Wenyuan Communication Technology Co. , Ltd. , and will conduct a pre-listing at the Shenzhen United Property and Equity Exchange. The pre-listing serves only as information pre-disclosure to solicit prospective acquirers and does not constitute a transaction; both the counterparty and price remain undetermined.
Since 2022, the public security private network industry has seen a marked downturn, leaving Wenyuan Communications' performance under sustained pressure. In 2025, it generated operating revenue of RMB 18.34 million and a net loss of RMB 73.04 million. If the disposal is completed smoothly, it will help the company focus on its core business and optimise its asset structure and resource allocation.
On August 13, Gongjin's shares hit the daily price limit and closed at RMB 15.96. Since July, the shares have risen consecutively, prompting several abnormal-fluctuation announcements from the company, which has consistently stated that there is no material undisclosed information. In a July 9 statement, the company acknowledged that the data centre switch concept has drawn significant market attention, but noted that revenue from high-rate switches used in data centres, especially 400G and 800G products, accounts for a relatively small share of main-business revenue and has only limited impact on near-term performance.
Gongjin has in recent years accelerated its expansion into new sectors including automotive electronics and cleaning and home robots. In 2025, automotive electronics shipments exceeded 2.7 million units, with key-product volumes continuing to climb and profitability improving gradually. Revenue from OEM cleaning and home robots surpassed RMB 180 million, achieving profitability in the first year.
The company has yet to release its first-half 2026 results. For the first quarter of 2026, it reported operating revenue of RMB 2.179 billion, up 6.26% year-on-year, and net profit attributable to shareholders of the parent of RMB 24.45 million, up 9.65% year-on-year.