Longpan Technology (603906.SS) Internal Management and Operational Efficiency Evaluation Report

Based on the collected multi-dimensional data, I conducted a systematic analysis of Longpan Technology’s internal management chaos issues and operational efficiency improvement progress:

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Longpan Technology (Jiangsu Longpan Technology Group Co., Ltd.) is an enterprise that started with lubricant business and has actively transformed into the lithium battery cathode material field in recent years [0]. The company’s current market capitalization is 11.53 billion USD, stock price is 20.41 USD, up 88.28% from a year ago, but it is still in a loss-making state [0].

• Earnings Per Share (TTM): -0.72 USD
• Price-to-Earnings Ratio: -28.35x (negative value indicates loss)
• Return on Equity (ROE): -14.74%
• Net Profit Margin: -5.66%
• Current Ratio: 0.91 (below 1, indicating short-term debt repayment pressure) [0]

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From public information, Longpan Technology faced multiple internal management challenges during its transformation:

• The 2025 semi-annual report shows that the company strengthened dynamic inventory management through the Smart Operation Department and implemented real-time management using systems like ERP and WMS
• Flexibly adjusted inventory strategies and accelerated inventory turnover in response to raw material market price fluctuations and customer order changes [1]

• The company has completed the revision and improvement of the Articles of Association and supporting systems
• Abolished the supervisory board setup and strengthened the functions of the audit committee
• Continuously updated and improved internal management systems in accordance with laws and regulations such as the Company Law and Guidelines for Articles of Association of Listed Companies [1]

• The company carried out futures and derivatives hedging business, with trading varieties including urea, ethylene glycol, lithium carbonate, crude oil, etc.
• Alleviated capital pressure and optimized asset-liability structure through multi-channel financing [1]

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According to the company’s official disclosure, it has taken multiple measures in supply chain management:

Improvement Area	Specific Measures	Effectiveness Indicators
Procurement Transformation	Transform from traditional procurement to strategic procurement	Build long-term strategic cooperation relationships
Price Control	Proactively analyze market dynamics and formulate procurement strategies in advance	Try to explore new procurement channels
Inventory Management	Dynamic real-time management via ERP and WMS systems	Accelerate inventory turnover
Hedging	Financial instruments such as futures and options	Reduce the impact of raw material price fluctuations [1]

The company continues to deepen its talent strategy, supports global development and business transformation through systematic initiatives, and adopts a strategy that emphasizes both cultivation and introduction [1].

• Completed Hong Kong stock placement work
• Introduced strategic investors such as Indonesia’s national sovereign fund through subsidiaries
• Released a proposal for issuing A-shares to specific objects in August 2025
• Will raise funds through A-share private placement in the future [3]

The company actively promotes domestic and foreign customer expansion, signed long-term supply agreements with domestic and foreign enterprises such as LG, BlueOval, EVE Energy, CATL, etc., and deepened the locking of future sales volume [3].

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According to the evaluation results of financial analysis tools [0]:

Evaluation Dimension	Classification	Explanation
Financial Attitude	neutral	Balanced accounting practices, no continuous extreme situations
Debt Risk	high_risk	High risk level
Profit Trend	Loss-making state	The latest quarterly EPS is -0.04 USD, lower than the expected 0.10 USD [0]

Time Point	Earnings Per Share	Revenue
Q4 2024	-0.15 USD	2.09B
Q1 2025	-0.55 USD	2.01B
Q2 2025	-0.04 USD	1.59B
Q3 2025	-0.04 USD	2.20B [0]

Although the latest quarterly revenue reached 2.2 billion USD, it was lower than the analysts’ expected 2.38 billion USD, with a deviation rate of -7.44% [0].

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1. Improved System Construction
   : The company has completed the update of internal management systems in accordance with regulatory requirements and strengthened the functions of the audit committee
2. Upgraded Supply Chain Management
   : Implemented ERP and WMS system management and established futures hedging mechanisms
3. Diversified Financing Channels
   : Multi-channel financing such as Hong Kong stock placement, A-share private placement, and introduction of strategic investors
4. Optimized Customer Structure
   : Established long-term supply agreements with leading lithium battery enterprises

1. Profitability Not Yet Restored
   : The company is still in a loss-making state, with Q3 2025 EPS of -0.04 USD
2. High Debt Risk
   : Financial analysis shows a high-risk rating, with current ratio below 1
3. Performance Deviation from Expectations
   : Actual performance has been lower than market expectations for multiple consecutive quarters
4. Industry Cycle Pressure
   : Competition in the lithium battery cathode material industry is intensifying, and price fluctuations have a significant impact on the company

Longpan Technology has made substantial progress in

and , and the historical management chaos issues have been systematically rectified. However, . The core challenges facing the company are:

1. How to restore profitability in fierce market competition
2. How to effectively control debt levels and manage financial risks
3. How to translate management improvements into sustainable performance growth

: Given that the company is still in the transformation period and has high financial risks, it is recommended that investors closely monitor its subsequent performance improvement and debt disposal progress, and carefully evaluate investment risks.

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[0] Jinling API Market Data - Longpan Technology (603906.SS) Real-time Quotes and Financial Data (2025-12-29)

[1] Jiangsu Longpan Technology Group Co., Ltd. 2025 Semi-Annual Report (2025-08-21) - https://static.cninfo.com.cn/finalpage/2025-08-21/1224525191.PDF

[2] Longpan Technology Announcement on Abnormal Stock Trading Fluctuations (2025-11-26) - https://www.capitalfutures.com.tw/zh-tw/financial/globalarticle?contentid=c25112601004&category=all

[3] Longpan Technology 2025 Q3 Performance Briefing Announcement (2025-11-13) - https://stockmc.xueqiu.com/202511/603906_20251113_MJDU.pdf