Suda Share's Chairman Li Xiyuan Placed Under Detention Away from His Locality; Company Listed for Only One and a Half Years; Received Warning Letter from Securities Regulatory Bureau in Early March

Suda Co., Ltd. (SZ001277, stock price 39.96 yuan, market value 3.037 billion yuan) announced that the company received a notice from the Bengbu City Bengshan District Supervision Committee regarding its actual controller and chairman, Li Xiyuan’s family members. On March 13, Li Xiyuan was placed under detention.

In the announcement, Suda Co., Ltd. stated that as of the disclosure date, other directors and senior management are performing their duties normally, control has not changed, and operations are normal. Li Xiyuan’s detention is not expected to have a significant impact on the company’s daily operations. Currently, the company has not received any investigation or cooperation documents from authorities, and the progress and conclusions of the detention investigation are unknown. The company will continue to monitor the situation and fulfill disclosure obligations promptly.

Received a warning letter from Henan Securities Regulatory Bureau at the beginning of the month

Public information shows that Li Xiyuan was born in 1973. In 1996, he joined Guangzhou Mechanical Science Research Institute (formerly Mechanical Industry Ministry Guangzhou Machine Tool Research Institute) as a technician. This early technical background laid the foundation for his later involvement in the machinery service industry.

Around 2007, he keenly perceived that the aftermarket (maintenance, parts, etc.) for coal mine machinery lacked professional services. He attempted to transfer his experience in the engineering machinery parts sales industry to the coal machinery field, which became the original intention of founding Suda Co., Ltd.

The “Daily Economic News” reporter (hereinafter referred to as the “reporter”) noted that Li Xiyuan is a “veteran” figure in Suda Co., Ltd.—in 2009, Li Xiyuan, Zhengzhou Coal Mining Machinery (now Zhongchuang Zhiling, SH601717), Jia Jianguo, and Li Yousheng jointly invested to establish Suda Limited (the predecessor of Suda Co., Ltd.), with an initial registered capital of 10 million yuan. Li Xiyuan and Zhengzhou Coal Mining Machinery each held 40%, making them the first and second largest shareholders. Li Xiyuan served as director and general manager of Suda Limited from September 2009 to September 2014, and from September 2014 to April 2021, he was chairman and general manager of Suda Co., Ltd. Since April 2021, he has been chairman.

Just two weeks ago, on March 2, the listed company and Li Xiyuan received a warning letter from the Henan Securities Regulatory Bureau. The violation was related to management of idle funds—after the shareholder meeting authorization expired (after October 23, 2025), the company continued to purchase financial products using idle funds without board approval and failed to disclose this.

Failed to list on the Growth Enterprise Market, switched to Shenzhen Main Board

It should be noted that Suda Co., Ltd. is a listed company based in Zhengzhou, Henan Province, but the announcement states that Li Xiyuan was detained by the Anhui Bengbu Supervisory Committee.

The reporter also noted that Suda Co., Ltd. was established in July 2009 and listed on the Shenzhen Stock Exchange Main Board on September 3, 2024, about a year and a half ago. In its first year of listing (2024), the company experienced a “double decline”—revenue decreased by 6.89% to 1.1667 billion yuan, and net profit attributable to shareholders decreased by 13.56% to 140 million yuan.

In fact, Suda’s listing journey was not smooth: in January 2021, the company’s initial attempt to list on the ChiNext was rejected due to issues such as related-party transactions and sustainable independent operation capabilities. However, Li Xiyuan did not give up; he led the company to switch to the Shenzhen Main Board. On September 3, 2024, Suda successfully listed (issue price 32 yuan), raising over 500 million yuan.

According to Suda’s 2025 semi-annual report, the company’s main business is in the industrial machinery service sector, mainly focusing on the aftermarket for coal comprehensive mining equipment, serving coal production enterprises. The company is one of the larger domestic providers of coal mine machinery aftermarket services. Recognized by the China Coal Machinery Industry Association, from 2022 to 2024, the company ranked first in market share in hydraulic support repair and remanufacturing markets.

In the secondary market, data from Eastmoney shows that on the 16th, Suda’s stock price briefly fell more than 1% in the morning, then recovered and turned positive in the afternoon, closing up 0.25%. The total trading volume was 30.38 million yuan, with a turnover rate of 1.68%.