Lily Group Shares Surge Over 400% on Photoresist Concept, Then Limit-Down; Revenue Share Only 0.084%

Lily Group (603823) shares rose from approximately RMB 16 per share in late April 2026 to an intraday high of RMB 85.02 per share on July 22, a record high and a cumulative gain of more than 400%. On July 27, the stock hit its daily limit-down, closing at RMB 68.32 per share, bringing its total market capitalization back to RMB 28.4 billion. This was the second limit-down for the stock in three trading days.

The company's main business is the research, development, production and sale of organic pigments and related intermediates. Its high-performance pigment products can be used in the photoresist field for liquid crystal display panels. In 2025, the company's photoresist pigment sales revenue accounted for 0.084% of total revenue. The company has repeatedly issued announcements stating that its fundamentals have not changed materially, its main business remains organic pigments and intermediates, and there are no material matters that should be disclosed but have not been. Since June 2026, the company has issued five announcements on abnormal stock trading fluctuations.

In the first quarter of 2026, the selling prices of Lily Group's four main product lines all declined. Yonggu Yellow, Lithol Red, Lake Red, and Yonggu Red series fell 5.58%, 3.65%, 7.67%, and 9.2% year-on-year, respectively. Financial data show that from 2023 to 2025, Lily Group's revenue was RMB 2.284 billion, RMB 2.403 billion, and RMB 2.15 billion, respectively; net profit attributable to shareholders was RMB 120 million, RMB 176 million, and RMB 167 million, respectively. In the first quarter of 2026, the company achieved revenue of RMB 573 million, up 0.74% year-on-year, and net profit attributable to shareholders of RMB 42.94 million, down 6.23% year-on-year.

Controlling shareholder Lily Group Holding disclosed a reduction plan on June 17, 2026, proposing to reduce up to 4.1637 million shares (1% of total share capital) via centralized bidding from July 10 to October 9. From July 10 to 13, Lily Group Holding had already reduced 1.0385 million shares, representing 0.25% of total share capital. On July 22, the company's directors and senior executives disclosed a reduction plan, citing personal capital needs, proposing to reduce a total of no more than 908,400 shares within three months starting August 14.