Guangdong Shenling Environmental Systems Co. Ltd.

The general equipment sector fell 3.05% during the session, with component stocks Shenling Environment dropping 10.68%, Lianying Instruments down 9.99%, Moon Environment declining 9.99%, Dongshan Precision losing 9.74%, and Dingtai High-Tech falling 6.99%. The Ministry of Finance, the State Taxation Administration, and the Ministry of Ecology and Environment jointly released the Implementation Measures for the Pilot Collection of Environmental Protection Tax on Volatile Organic Compounds, launching a pilot program across eight industries including general equipment manufacturing starting January 1, 2027. National Bureau of Statistics data shows that from January to June, profits in general equipment manufacturing rose 1.5% year-on-year, while the computer, communications, and other electronic equipment manufacturing sector surged 96.9%. A research report from Jianghai Securities noted that the industrial automation market is growing steadily, with the market size for small PLCs and general servo systems expected to reach 877.6 million yuan and 2.366 billion yuan respectively in 2026.

Shenling Environment plans to acquire 100% equity in its wholly-owned sub-subsidiary Tianjin Shenling HVAC Equipment Co., Ltd. for 7.1805 million yuan. After the transaction, Tianjin HVAC will change from a wholly-owned sub-subsidiary to a wholly-owned subsidiary. The acquisition price is based on the assessed net asset value of Tianjin HVAC as of December 31, 2025, and the funds come from the company's own capital. In the first quarter of this year, Tianjin HVAC recorded revenue of 44.2901 million yuan and a net loss of 2.4865 million yuan. Shenling Environment stated that this internal equity transfer does not change the scope of consolidated financial statements and has no significant impact on the company's operations or financial position. The company's own first-quarter performance was also under pressure, with revenue of 617.2 million yuan, down 1.80% year-on-year, net profit of 28.31 million yuan, down 47.71% year-on-year, and a net operating cash outflow of 193 million yuan.