On July 17, Song Tao, a self-identified co-founder and former COO of Yuejiang Technology, publicly accused the company of concealing significant shareholder disputes in its A-share prospectus. Following these allegations, Yuejiang Technology's stock price plummeted over 12%, resulting in a market value loss exceeding 1.6 billion HKD. The controversy centers on the ownership of shares in the employee stock ownership platform 'Yuejiang Partners', with Song claiming he should hold 69.7373% of the shares, while the prospectus only recorded 22.455%.
Yuejiang Technology clarified on July 22 that Song, who joined the company in October 2017, is not a founding shareholder. His shares stem from an employee equity incentive plan, which the company can repurchase following his departure in 2021. Despite revenue growth projected from 287 million CNY in 2023 to 493 million CNY in 2025, the company continues to face cumulative losses of approximately 280 million CNY.
As Yuejiang Technology prepares for its A-share listing, it confronts multiple challenges, including ongoing shareholder disputes, persistent operational losses, declining prices of core products, and the rationale behind frequent fundraising efforts. The company plans to raise 1.2 billion CNY in its upcoming A-share offering, despite having 2.217 billion CNY in cash reserves, raising questions about the necessity of additional liquidity.
Editor's Note
Yuejiang Technology's situation highlights the complexities of corporate governance and investor confidence in the robotics sector. As the company navigates shareholder disputes and financial pressures, its ability to maintain trust and transparency will be crucial for its future fundraising and market performance. The ongoing price decline of its core products further complicates its growth trajectory.
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