Dongfeng Duoduo at the Center of the Storm: The "Conspicuous" Related Party Transactions

Why is the related-party transaction with 多氟多 attracting attention now?

Subsidiary Henan Yifeng Electronic New Materials Co., Ltd. (hereinafter referred to as “Yifeng Electronic”) was named in CCTV’s “3.15” evening gala, causing the leading lithium hexafluorophosphate company 多氟多 (002407) to fall into a public relations storm. After a night of fermentation, on the morning of March 16, 多氟多 issued a statement, quickly distancing itself from the matter, but Yifeng Electronic has already entered the suspension and investigation phase.

In fact, 多氟多 held shares in Yifeng Electronic for just over a year. In early 2025, the listed company acquired a 54% stake in Yifeng Electronic from the actual controller Li Shijiang’s 多氟多集团. This transaction was only the tip of the iceberg of their large related-party dealings. Data shows that from January to November 2025, related-party transactions between the two companies approached 1 billion yuan.

It is understood that 多氟多 was founded and listed by Li Shijiang. At the end of 2025, the company completed a second-generation leadership handover, with Li Shijiang’s son, Li Yunfeng, taking over as chairman. Performance-wise, after two consecutive years of net profit decline in 2023 and 2024, 多氟多 is expected to see a “recovery” in 2025, with annual net profit turning profitable.

Yifeng Electronic has ceased production

Yifeng Electronic, named in CCTV’s “3.15” gala, has stopped all production and business activities.

On the evening of March 15, CCTV’s “3.15” gala exposed Sichuan Shufuxiang Food Co., Ltd. (hereinafter “Shufu Xiang”) and Chongqing Zengqiao Food Co., Ltd. (“Zengqiao Food”) for bleaching and soaking chicken feet with hydrogen peroxide during processing, involving Yifeng Electronic’s sales of hydrogen peroxide.

Tianyancha’s business information shows that Yifeng Electronic is a controlled subsidiary of 多氟多, holding 54% of its shares. After the disclosure, 多氟多 issued an emergency statement on the morning of March 16, stating that Yifeng Electronic has not established any business cooperation, brand licensing, or product manufacturing relationships with the media-reported Shufu Xiang, Zengqiao Food, or other entities. Its production and sales activities are unrelated to the company and its controlling subsidiaries.

However, the “3.15” gala directly pointed out that Yifeng Electronic was involved in violations such as providing unlabeled food additives and breaching hazardous chemical management regulations. On March 16, according to CCTV News, the Huojia County Market Supervision Administration issued a notice stating that the exposure of the illegal use of hydrogen peroxide in processing chicken feet involved Yifeng Electronic. Huojia County attached great importance, immediately formed a joint investigation team, and conducted a comprehensive review of the involved enterprises overnight. Currently, the company has ceased production and business activities, and further investigations are ongoing.

It is known that 多氟多 was established in 1999, mainly engaged in the research, production, and sales of high-performance inorganic fluorides, electronic chemicals, lithium-ion batteries, and materials. The company listed on the A-share market in May 2010 and has been listed for nearly 16 years.

A review of 多氟多’s historical announcements shows that its holding period in Yifeng Electronic was short. In January 2025, the company announced its acquisition plan, planning to use 28.45 million yuan of its own funds to buy a 54% stake in Yifeng Electronic held by 多氟多集团. At that time, the purpose of the related-party transaction was said to be to enrich the company’s electronic chemical product portfolio.

However, based on the latest performance disclosure on March 16, 2025, Yifeng Electronic’s results are not promising. That year, Yifeng Electronic achieved operating revenue of 31.15 million yuan, with a net profit of -3.3872 million yuan (unaudited), indicating a loss.

Looking at past financial data, in 2023, Yifeng Electronic achieved revenue of 53.98 million yuan and a net profit of 295,600 yuan, still profitable; but from January to October 2024, revenue was 36.26 million yuan with a net loss of 18,010 yuan, already in the red.

Projected related-party transactions in 2026 are expected to reach 1.321 billion yuan

多氟多 was founded by Li Shijiang. As of the end of Q3 2025, Li Shijiang directly held 10.29% of 多氟多’s shares, making him the company’s largest individual shareholder; the second-largest shareholder is 多氟多集团, which is 68% owned by Li Shijiang, holding 2.39% of 多氟多.

The Beijing Business Daily noted that behind the acquisition of Yifeng Electronic’s equity, 多氟多 and its related party, 多氟多集团, have built a vast network of related transactions. Data shows that from January 1 to November 30, 2025, transactions between 多氟多 and 多氟多集团 amounted to 979 million yuan (excluding tax). Additionally, in 2026, daily related-party transactions are projected to include approximately 405 million yuan in sales to 多氟多集团 and its subsidiaries, 3 million yuan in service provision, 910 million yuan in procurement, and 2.5 million yuan in services received, totaling about 1.321 billion yuan.

Furthermore, Tianyancha’s full equity map shows that 多氟多 and 多氟多集团 jointly hold stakes in four companies: Guangxi Ningfu New Energy Technology Co., Ltd. (“Guangxi Ningfu”), 多氟多同位素科技（河南）有限公司 (“Isotope Technology”), Zhejiang Zhongning Silicon Industry Co., Ltd., and Henan Fluorine-based New Materials Technology Co., Ltd. (“Fluorine New Materials”).

According to 多氟多’s historical announcements, the company increased capital in Isotope Technology in March, June, and December 2025 with investments of 103 million yuan, 23.03 million yuan, and 1 billion yuan respectively. It also invested in Fluorine New Materials and Guangxi Ningfu.

Business strategist and corporate consulting expert Huo Hongyi told the Beijing Business Daily that the main purpose of capital increases is usually to strengthen supply chain coordination, such as supporting upstream and downstream companies, consolidating raw material supplies, or expanding product application scenarios. It may also be aimed at aligning interests among related parties to enhance cooperation stability.

Additionally, Tianyancha’s business registration shows that on February 10, 2026, Henan Jafu New Materials Co., Ltd., jointly held by 多氟多 and 多氟多集团, was canceled. Currently, the company was held 75% by 多氟多 and 25% by 多氟多集团.

Li Yunfeng just “took over” as chairman

The ownership structure of 多氟多’s related party, 多氟多集团, reveals that besides Li Shijiang, his children Li Yunfeng, Li Lingxiao, and brothers Li Shibin and Li Shixuan are involved. Li Yunfeng is the second-largest shareholder of 多氟多, holding 10% of the shares; Li Lingxiao, Li Shibin, and Li Shixuan hold approximately 8%, 6%, and 2%, respectively.

Amid the succession of “second-generation” leaders, 75-year-old Li Shijiang has also begun to promote the next generation. In December 2025, his son Li Yunfeng officially “took over” as chairman of 多氟多. Prior to this, in 2024, Li Shijiang served as chairman with an annual salary of 1.2 million yuan, while Li Yunfeng was general manager and director, earning 1.201 million yuan annually.

With the second generation taking the helm, 多氟多’s fundamentals showed signs of recovery in 2025. Financial data indicates that from 2022 to 2024, the company’s revenue was approximately 12.358 billion, 11.938 billion, and 8.207 billion yuan respectively; net profits were about 1.958 billion, 511 million, and -308 million yuan. According to the 2025 performance forecast, the company expects to achieve a net profit of 200 million to 280 million yuan, turning profitable year-over-year.

As of the end of Q3 2025, 多氟多 had about 5.728 billion yuan in cash and equivalents, with long-term loans of 4.176 billion yuan and short-term loans of 1.322 billion yuan, totaling approximately 4.998 billion yuan. Yuan Shuai, deputy secretary-general of the Zhongguancun Internet of Things Industry Alliance, commented that “the core issue behind this is low capital allocation efficiency, with idle funds not effectively covering financing costs.”

In the secondary market, 多氟多 experienced a significant stock price surge in the second half of 2025, with a cumulative increase of 238.47% from July 16 to November 17. However, the stock then fluctuated and declined. As of the close on March 16, 多氟多’s share price slightly fell by 0.97%, closing at 30.55 yuan per share, with a total market value of 36.37 billion yuan.

Additionally, it is worth noting that at the end of 2025, Li Shijiang’s daughter, Li Lingyun, planned to cash out by reducing her holdings through centralized bidding and block trades, with a total reduction of no more than 2.3107 million shares (accounting for 0.2% of the total shares after excluding the company’s share repurchase account).

The Beijing Business Daily contacted 多氟多 for interview requests, but as of press time, no response has been received.

Beijing Business Daily reporter Wang Manlei