Zhuzhou Hongda addresses stock surge, IPO application impact

Zhuzhou Hongda Electronics Corp announced that its stock price increased by a cumulative deviation of 31.00% over three consecutive trading days from December 22 to December 24, 2025, triggering an abnormal fluctuation notice. The company stated that no undisclosed major matters or fundamental changes have occurred.

The company clarified that its indirectly held 13.79% stake in Jiangsu Zhanxin Semiconductor Technology had its initial public offering (IPO) application accepted by the Shenzhen Stock Exchange on December 18, 2025. This event, however, is not expected to significantly impact Zhuzhou Hongda Electronics' current financial statements, as its investment is accounted for under the equity method, and the subsequent progress of the IPO application remains uncertain.

As of December 24, 2025, Zhuzhou Hongda Electronics' closing price was CNY 56.25 per share, with a static price-to-earnings ratio of 82.96x and a price-to-book ratio of 4.61x. These figures are higher than the industry averages for computer, communication, and other electronic equipment manufacturing, which stood at 60.76x for static price-to-earnings and 5.10x for price-to-book on December 23, 2025. The company cautioned investors about potential market speculation due to its significant short-term price increase.