Hongchang Technology responds to investment in "Zhang Xue Motorcycle": the impact on the company is minimal

(Source: V-Observer Finance Report)

After the close of trading on the 31st, Hongchang Technology released an announcement regarding abnormal stock price fluctuations.

Hongchang Technology’s stock trading price, for two consecutive trading days (March 30, 2026, and March 31, 2026), had a cumulative closing price increase deviation of 46.58% (exceeding 30%). According to relevant regulations of the Shenzhen Stock Exchange, this falls under abnormal stock trading fluctuations.

In response to the company’s abnormal stock trading fluctuations, Hongchang Technology stated that it has noticed that, in recent times, public media has reported extensively on “Zhangxue Motorcycle” winning the championship in the WorldSSP class at the World Superbike Championship (WSBK) Portugal round, which has drawn significant market attention, along with coverage regarding the company’s indirect investment in “Zhangxue Motorcycle.” The company now explains the matter as follows:

In August 2025, the company, as a limited partner, together with other partners, invested in Jinhua Zhejiang Chuang Jinyi Smart Control Venture Capital Partnership (Limited Partnership) (hereinafter referred to as the “Jinyi Smart Control Fund”), with a subscribed total investment amount of RMB 50.3 million. The company subscribed RMB 15.0 million using its own funds, representing 29.82%. In January 2026, Jinyi Smart Control Fund completed its investment in Chongqing Zhangxue Motorcycle Industrial Co., Ltd. In March 2026, industrial and commercial registration changes were completed. After the investment was completed, the fund held 5.5046% equity in Zhangxue Motorcycle. This investment by the company is a financial investment, with a relatively small impact on the company.

Hongchang Technology stated that in recent times the company’s operating situation has been normal, its main business has not changed, and there have been no major changes in the internal and external operating environment; during the period of abnormal stock trading fluctuations, no actions occurred in which the company’s controlling shareholder, actual controller, shareholders holding more than 5%, or the company’s directors and senior management bought or sold the company’s shares.

According to available information, Hongchang Technology is a manufacturer of magnetic control products. Its products mainly serve the home appliance and kitchen-and-bath areas such as washing machines, smart toilet seats, dishwashers, water purifiers, and other home appliances. The company’s operating revenue mainly comes from fluid electromagnetic valves, modular components, and level sensors. The company’s main businesses include home-appliance parts business and products, automotive parts business and products, mold and equipment automation business, and robotics-related business.

In terms of performance, Hongchang Technology expects that in 2025, its net profit attributable to shareholders of listed companies will be RMB 30 million to RMB 35 million, representing a decline of 33% to 43% compared with the same period last year.

In the secondary market, Hongchang Technology hit the 20% limit-up on two consecutive trading days on March 30 and March 31, and is currently quoted at RMB 42.29 per share. The company’s total market capitalization is RMB 5.5 billion.

(The views in the article are for reference only and do not constitute investment advice. There are risks in investing; be cautious when entering the market.)

Cover and lead-in graphic sources: ZXMOTO official website

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