V View Financial Report | Liangmianzhen's net profit in 2025 drops by over 80%, with an independent director opposing the sale of land use rights

Ask AI · Why do independent directors question the necessity and conditions of land reserve acquisitions?

China New Media (Chinai) Jingwei, March 26—Two Sided Needle (Two Mian Zhen) disclosed its “2025 Annual Report” on March 26, stating that in 2025, operating revenue was RMB 1.063 billion, up 0.90%; net profit attributable to shareholders of listed companies was RMB 9.8461 million, down 87.86% year over year.

Screenshot of Two Sided Needle’s “2025 Annual Report,” the same below.

By product segment, in 2025, the operating revenue from daily chemical products was RMB 933 million, up 0.42%; operating revenue from pharmaceuticals was RMB 103 million, down 1.11%; and operating revenue from commercial trading was RMB 12.7188 million, up 62.09%.

Regarding the decline in profits, Two Sided Needle explained that this was mainly due to a year-over-year decrease in the fair value change gains/losses of its trading financial assets, mainly shares of Citic Securities, while the company’s operating fundamentals remained stable.

The annual report shows that the fair value change gain in the current period was -RMB 4.4282 million, while in the same period last year it was RMB 87.7418 million, representing a relatively large year-over-year change. This was mainly due to the fair value changes of the Citic Securities shares held by Two Sided Needle; this change had a significant impact on the company’s profit.

Two Sided Needle said that for fiscal year 2025, the company plans to use the company’s total share capital of 550 million shares as of December 31, 2025 as the base, to distribute a cash dividend of RMB 0.30 per 10 shares to all shareholders (including tax), with a total planned cash dividend of RMB 16.50 million (including tax).

On the same day (March 26), Two Sided Needle disclosed an “Announcement on Certain Land Reserve Acquisition Matters,” stating that the Liuzhou City Land Transaction Reserve Center plans to acquire the company’s state-owned construction land use right located at No. 151 Donghuan Road, Liuzhou City, with an area of 33,881.82 square meters (about 50.82 mu), and the land acquisition compensation amount is RMB 32.1048 million.

The announcement stated that on March 25, 2026, the company held its ninth session of the board of directors’ second meeting. The resolution was passed with a voting result of 8 in favor, 1 against, and 0 abstentions, approving the “Proposal on Certain Land Reserve Acquisition Matters.”

Independent director Liu Tingting voted against the land reserve acquisition matter. The main reasons were: the time was insufficient for the independent director to take office and to understand the situation of the matter and conduct the relevant assessment; the materials for the related resolution were insufficient to demonstrate that the land reserve acquisition has necessity and urgency; and the conditions for the reserve acquisition were unfavorable. The parcel is the green space in front of the company headquarters building, adjacent to the factory area; the location is superior, but the land reserve acquisition parcel is segmented unreasonably, which affects the company’s headquarters image and functional use, and in turn affects the value of the remaining land and above-ground buildings. In accordance with the principle of safeguarding the overall interests of the company and all shareholders, after careful consideration, the independent director voted against this proposal.

In the secondary market, as of the close on March 26, Two Sided Needle rose 4.34% to RMB 6.01 per share, with a latest market value of RMB 3.3 billion. (Chinai Jingwei APP)