The stock price has fallen more than 25% in one month! Zhenxin Technology's two former secretaries of the board resigned one after another within a month, and the dispute between the actual controller and the original management team remains unresolved.

Why Did the Power Struggle at Zhenxin Technology Trigger a Series of Executive Resignations?

Reporter: Xu Shuai    Editor: Wei Wenyu

Zhenxin Technology (SZ300101, stock price 19.84 yuan, market value 11.27B yuan), which saw its stock price decline over 25% in March, remains deeply embroiled in a battle for control.

The “Daily Economic News” reporter (hereinafter referred to as “the reporter”) noticed that at the end of March, Yang Guoyong, director and general manager of Zhenxin Technology, and acting secretary of the board of directors, resigned. This was the second resignation of a secretary of the board in that month. Notably, Yang Guoyong submitted his resignation twice in one day over issues related to “disputes over the eligibility of some directors,” leading to disagreements within the board regarding two different resignation reports.

It is worth noting that less than a month before the company’s annual report disclosure date on April 28, market attention is focused on whether the 2025 annual report can be released on time and whether corporate governance can stabilize.

Stock price down over 25% in a month, control dispute continues

In March, Zhenxin Technology’s stock performance was poor. The stock price fell by 25.68% in that month, hitting a new low for the year.

Behind the sharp fluctuations in the stock price is an intensifying power struggle between the company’s controlling shareholder, Chengdu Guoteng Electronic Group Co., Ltd. (hereinafter “Guoteng Electronic”), and the former management team.

On March 30, Zhenxin Technology announced that the board received a written resignation report from Yang Guoyong, director, general manager, and acting secretary of the board, on March 26, 2026. The reason cited was “conflicts with the controlling shareholder, serious disputes over the eligibility of some directors, and significant disagreements, making it difficult for the general manager to perform duties normally.”

The reporter noted that the announcement showed Yang Guoyong submitted two resignation reports on the same day (March 26)—once in the morning and once at noon. The first stated “resignation from director, general manager, and acting secretary of the board”; the second stated “resignation from general manager and acting secretary.” Internal disagreements arose within the board over these two different resignations. Guoteng Electronic, which nominated Liang Litao and four other directors (aligned with the controlling shareholder camp), believed the first resignation should be accepted, while Xie Jun and three other directors (from Zhenxin Technology’s founding team) believed the second should be accepted. Ultimately, the announcement was made based on the majority opinion, and Yang Guoyong resigned from his director position as well.

The announcement also indicated that after Yang Guoyong’s resignation, more than half of the board members agreed that Liang Litao, chairman of the company, would assume the duties of general manager, and vice general manager Ke Hai would act as secretary of the board. Notably, Ke Hai has a strong financial background and has little interaction with the controlling shareholder and former management.

In fact, the trigger for Yang Guoyong’s resignation was laid months earlier during a board meeting. On March 11, at the first extraordinary meeting of Zhenxin Technology’s seventh board, directors representing management and minority shareholders opposed the election of Liang Litao as chairman and the appointment of Zheng Lingyi as CFO. Opponents pointed out that, according to industry licensing regulations, key positions must undergo pre-qualification review and training before appointment. However, Liang Litao and Zheng Lingyi had not participated in such training or qualification review, which could jeopardize the company’s industry licensing status.

Moreover, at that meeting, Yang Guoyong, a veteran of 18 years at the company, cast the only abstention vote on the proposal to appoint himself as general manager, stating that internal conflicts and disagreements within the controlling shareholder persisted, and he lacked the ability to lead the management team to promote sustainable development.

Regarding the issue of “disputes over the eligibility of some directors,” a person familiar with Zhenxin Technology told the reporter on the evening of April 2 that they were unsure whether the controlling shareholder had submitted director materials to the company. Aside from concerns from the original management team, the director eligibility issue did not attract further attention.

Two secretaries of the board resigned within a month before the annual report disclosure

The reporter noted that Yang Guoyong’s resignation was the second key senior management departure related to information disclosure in March. Earlier in the month, Zhenxin Technology’s former secretary of the board and deputy general manager, Chen Sili, resigned due to personal reasons. Yang Guoyong had been acting as secretary after Chen Sili’s resignation.

Having two secretaries resign in one month reflects ongoing personnel turbulence behind a seven-year-long control struggle. The core conflict is between the controlling shareholder, Guoteng Electronic (the actual controller He Yan holding 51%), and the founding team (Mo Xiaoyu, Xie Jun, Xu Jin, Bai Jie), which holds 49%.

Earlier this year, Guoteng Electronic pushed for an early reshuffle of Zhenxin Technology’s board, gaining five seats, while the original management team’s camp secured four seats. Although the controlling shareholder appears to hold the advantage publicly, corporate governance has not stabilized.

On March 11, during a fierce boardroom confrontation, former director Mo Ran filed a lawsuit challenging the validity of the company’s resolutions. The plaintiff requested the court to declare invalid the resolutions of the extraordinary shareholders’ meeting held on February 12, 2026, citing issues such as some nominated directors allegedly lacking qualification and influence from the controlling shareholder affecting shareholder voting.

It is also noteworthy that Zhenxin Technology’s 2025 annual report is scheduled to be disclosed on April 28, less than a month away. With ongoing disputes between the two major factions and the resignation of the former secretary and general manager, whether the company can release its annual report on time has become a focal point of concern.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before acting. Use at your own risk.

Daily Economic News