Lake Electric plans to transfer its equity in Precision Machinery for 212 million yuan

On the evening of April 1st, Lake Electric (603355) released an equity transfer announcement, stating that the company plans to transfer 90% of its wholly-owned subsidiary for a transaction price of 212 million yuan. The company said that this transaction aims to optimize the company’s asset structure and resource allocation, and to further focus on the development of its core clean appliance business.

The announcement shows that the target of this equity transfer is 90% of the shares of Suzhou Jingleike Precision Machinery Co., Ltd. (hereinafter referred to as “Precision Machinery”), a wholly-owned subsidiary of the company. After the transaction is completed, Lake Electric’s shareholding in Precision Machinery will decrease to 10%, and Precision Machinery will no longer be included in the company’s consolidated financial statements.

Precision Machinery was established in 2005, with business scope including non-ferrous metal casting, communication equipment manufacturing, automotive parts and accessories manufacturing, among others. Financial data shows that its revenue in 2024 is approximately 442 million yuan, with a net profit of 56.57 million yuan; in the first three quarters of 2025, revenue is about 122 million yuan, with a loss of 2.4811 million yuan.

In recent years, in order to respond more flexibly to macroeconomic fluctuations, industry policy adjustments, and uncertainties in international trade patterns, Lake Electric has moved and integrated some production lines. Lake Electric stated that the sale of part of its subsidiary’s equity is a business adjustment based on the company’s overall development strategy, aimed at optimizing asset structure and resource allocation, improving asset operation efficiency, reducing management costs, and enhancing profitability.

From a performance perspective, Lake Electric’s growth last year faced pressure. Data shows that in the first three quarters of 2025, Lake Electric’s total operating revenue was 7.31B yuan, a year-on-year increase of 0.92%; net profit attributable to the parent was 621 million yuan, down 29.32% year-on-year; non-recurring net profit was 583 million yuan, down 32.88% year-on-year; and net cash flow from operating activities was 593 million yuan, down 37.90% year-on-year.

Against this background, Lake Electric is trying to expand into new businesses. In December last year, Lake Electric announced that it planned to invest 20 million yuan of its own funds to subscribe for shares in Gongqingcheng Jintang Venture Capital Partnership (Limited Partnership), accounting for 62.40% of the committed capital. The partnership plans to invest in “Shenzhen Yunbao Intelligent Co., Ltd.” or its future actual listing entity to realize equity investment, thereby achieving capital appreciation for the partnership. The company stated that this move is conducive to seizing investment opportunities in emerging industries and expanding diversified investment channels.

From an industry perspective, since last year, the domestic home appliance industry has maintained a recovery trend supported by policies such as old-for-new replacements, with continuous optimization of demand structure. Entering 2026, the clean appliance industry is affected by subsidy policy coordination, increased brand marketing investments, and other factors, leading to ongoing price competition and share battles. Mainstream categories like robotic vacuum cleaners and floor scrubbers show different price and sales trends, with leading companies leveraging product and channel advantages to gradually increase market share.