Following a one-week trading suspension, shares of ST Long Yuan (formerly Long Yuan Construction, 600491.SH) resumed trading on July 10th and immediately hit the daily upside limit, closing at 1.12 yuan.

The surge was driven by a corporate announcement on July 9th. During the suspension period, the company received a summary report for a tender offer from Ningbo Kaihai Self-owned Capital Investment Development Co., Ltd. The offeror plans to make a partial tender to all shareholders for 91.786 million shares at a price of 1.25 yuan per share. Upon completion, the offeror would hold a maximum of 6.00% of the company's shares.

According to the latest disclosures, the ultimate controlling party of the acquirer is the State-owned Assets Supervision and Administration Commission of Ningbo Municipal People's Government.

It is noteworthy that in the two trading days preceding the halt, ST Long Yuan shares had consecutively hit the daily limit-up, with the pre-suspension price at 1.02 yuan.

This means the tender offer price represents a premium of approximately 22.5% over that level.

The announcement states that this tender offer is based on recognition of the listed company's value, aiming to genuinely safeguard the interests of investors and promote the company's sustained, stable, and healthy development.

The offer is categorized as a voluntary tender and is not undertaken to fulfill a statutory mandatory takeover obligation. The purpose of this tender offer is not to terminate the company's listed status.

Background information shows Long Yuan Construction listed on the A-share market in 2004, focusing on general contracting for construction projects and infrastructure investment. After over four decades of development, through extending its industrial chain, accumulating experience and resources in infrastructure, and researching new areas like green building, it has formed an ecosystem with three synergistic sectors: construction contracting, infrastructure investment, and green building.

In recent years, affected by market conditions and other factors, the company has seen reduced order volumes alongside increased asset impairment losses, leading to sustained losses.

From 2023 to 2025, the company reported revenues of 9.004 billion yuan, 9.119 billion yuan, and 4.431 billion yuan, respectively. Net profits for the same periods were -1.311 billion yuan, -663.4 million yuan, and -2.586 billion yuan. Its non-GAAP net profit has been negative for four consecutive years, with cumulative losses exceeding 5.5 billion yuan.

For the first quarter of 2026, the company achieved revenue of 1.261 billion yuan, a year-on-year decrease of 9.42%, with a net profit of -129 million yuan, down 167.02% year-on-year. The non-GAAP net profit was -144.0 million yuan.

It is worth noting that the company triggered a specific provision of the Stock Listing Rules, as its lowest net profit figure (whether GAAP or non-GAAP) has been negative for three consecutive fiscal years, and the audit report for the most recent fiscal year indicated uncertainty regarding its going concern status. Consequently, its stock trading was placed under Other Risk Warning.

Effective May 6, 2026, the company's stock abbreviation was changed to "ST Long Yuan".

On June 29th, ST Long Yuan disclosed a risk warning announcement regarding potential delisting. The stock's closing price that day was 0.97 yuan per share, falling below the 1 yuan par value for the first time. According to relevant Shanghai Stock Exchange regulations, for a company listing only A-shares, if the daily closing price remains below 1 yuan for 20 consecutive trading days, the exchange will terminate its listing. Companies delisted under such trading-related rules do not enter a delisting consolidation period.

On June 30th, ST Long Yuan again hit the daily limit-down, with the price at 0.92 yuan, marking two consecutive trading days with a closing price below 1 yuan.

On July 2nd, ST Long Yuan announced that the Lin'an District People's Court of Hangzhou City would conduct a public judicial auction on Taobao from 10:00 AM on August 4th to 10:00 AM on August 5th (subject to extension). The auction involves 120 million unrestricted tradable shares held by Lai Zhenyuan, a member of the controlling shareholder family, representing 32.96% of the family's total holdings and 7.82% of the company's total share capital. The assessed value of these shares is 246 million yuan, with an actual starting bid of 172 million yuan.

As per the latest disclosure, the controlling shareholder family holds 363,186,272 shares of the company, accounting for 23.74% of the total share capital. Of this, 362.4 million shares are pledged, representing 99.78% of their current holdings and 23.69% of the company's total shares. The controlling shareholder family's holdings are subject to high pledge ratios and judicial freezing. If these shares are subsequently subject to judicial disposal, there is a risk that the stability of the company's control could be affected. The controlling shareholder family has stated it will maintain continuous and close communication with relevant creditors and actively raise funds to properly handle the related family debts.

The key question now is whether the entry of the Ningbo SASAC can reverse the company's downward trajectory.