Countdown to the annual report: Sichuan Meifeng's leadership change, the chairman who has been at the helm for about 7 years steps down! The company is expected to report a loss of nearly 100 million yuan in 2025. Who will take on the urgent task of reversing the downward trend?

Why did AI · Wang Yong choose to resign just before the annual report disclosure?

Meiri Reporter: Xu Shuai    Meiri Editor: Du Yu

Less than a month remains before the 2025 annual report is disclosed, and Sichuan Meifeng Chemical Co., Ltd. (000731.SZ, hereinafter referred to as “Sichuan Meifeng”) has seen an abrupt change at the top. In a company announcement released on the evening of April 3, the company said that Chairman Wang Yong resigned from all positions due to a change in his job responsibilities, fully stepping down from the company.

However, as Sichuan Meifeng’s performance has been under pressure last year, it expects net profit for 2025 to be a loss of RMB 98 million to RMB 129 million, turning year-on-year from profit to loss, with a decline ranging from 136.06% to 147.47%.

With Wang Yong stepping down, President Wang Liang has been nominated as a non-independent director, and Director Wang Shuang will temporarily assume the chairmanship. A new captain has yet to be named; it remains unknown who will be able to lead the company out of the loss trap.

Chairman’s resignation, leading the company for about 7 years

As the countdown to the disclosure of the 2025 annual report enters its final stage, Sichuan Meifeng announced the chairman’s resignation, drawing market attention.

On the evening of April 3, Sichuan Meifeng issued multiple announcements, stating that Chairman Wang Yong resigned from relevant positions including director, chairman, and positions in special committees of the board due to changes in his work responsibilities, and that he would no longer hold any position in the company. At this time, it was already less than one month before the company’s scheduled disclosure of the 2025 annual report (April 28, 2026).

Image source: Sichuan Meifeng announcement

Wang Yong’s resignation was not entirely without warning. As early as January 2026, he resigned as the company’s president due to work adjustments, though at that time he still retained positions such as chairman. At that time, the company’s announcement said that after his resignation, Wang Yong would continue to serve as chairman, director, chair of the Strategy and ESG Committee of the board of directors, and a member of the Budget Committee.

Sichuan Meifeng announcement

However, only a few months later, Wang Yong chose to exit the company.

According to the company announcement, Wang Yong has recently submitted a written resignation report, resigning from all positions including director and chairman. His original term was scheduled to end on June 25, 2028.

The company’s board of directors expressed gratitude for his contributions during his tenure, stating that he was “diligent and conscientious, and dutiful in his responsibilities.”

According to the company announcement, Wang Yong, born in 1969, has a bachelor’s degree and is a senior political affairs engineer. He has previously held multiple management positions within the Sinopec Southwest Petroleum Bureau system. He has served as chairman since the company’s ninth session of the board of directors, and by the time of his resignation, he had about 7 years of experience as chairman. On the afternoon of April 3, a reporter from The Daily Economic News called Sichuan Meifeng’s publicly listed phone line to ask why he resigned before the annual report was disclosed. The staff member said they only knew that he resigned due to a change in his work responsibilities.

2022 was the company’s performance highlight

During Wang Yong’s tenure as chairman of Sichuan Meifeng, 2020 to 2022 were a peak period for the company’s performance. In 2020, net profit attributable to shareholders amounted to RMB 104 million; in 2021, it surged to RMB 569 million; and in 2022, it further reached RMB 622 million, setting a profit record for the company in recent years. In 2022, net profit after deducting non-recurring gains and losses also reached RMB 575 million.

But in 2023 and 2024, the company’s net profit fell sharply for two consecutive years. Data shows that in 2023, net profit attributable to shareholders was RMB 383 million, down 38.50% year-on-year; in 2024, it was RMB 272 million, down 28.97% year-on-year. Net profit after deducting non-recurring gains and losses also showed an accelerating downward trend, dropping to RMB 202 million in 2024, down 35.65% year-on-year.

On the revenue side, however, there was some resilience. In 2024, the company’s total operating revenue was RMB 4.554 billion, up 9.10% year-on-year, ending the decline seen in 2023, but profit recovery was not yet obvious.

The company’s interim report last year also acknowledged multiple risks it faced, including safety and environmental risks, risks of fluctuations in the prices of its main products, risks of rising costs, and risks arising from uneven natural gas supply. In particular, it mentioned that under policy environments with zero growth or even negative growth in fertilizer usage, there is limited incremental demand for traditional fertilizers, and there are significant risks of price volatility for main products such as urea and compound fertilizers.

From the perspective of industrial layout, in recent years the company has expanded from a single focus on agricultural urea to six major industries: vehicle urea, melamine, ammonium nitrate, LNG, oilfield chemical agents, high-molecular functional membrane materials, and modern agriculture. It is trying to offset cyclical fluctuations through diversification. However, in terms of profitability performance, the effectiveness of the transformation still needs time to be validated.

With Wang Yong’s complete exit, adjustments in Sichuan Meifeng’s management have also begun.

On April 3, 2026, the company held the seventh (extraordinary) meeting of the 11th session of its board of directors, during which it approved a resolution to elect Wang Liang as a candidate for a non-independent director of the 11th session of the board. This nomination has been reviewed by the board’s nomination committee and still needs to be submitted to and approved by the shareholders’ meeting. The term will run from the date the shareholders’ meeting approves it until the end date of the current session of the board.

Wang Liang, born in 1975, holds a master’s degree in engineering and is a senior economist. His career has mainly been concentrated in the system of Sinopec Southwest Oil and Gas Branch, where he served as manager of the Materials Supply Center, deputy party secretary, and party secretary. Currently, Wang Liang is the president of Sichuan Meifeng.

At the same time, because the election of the new chairman still requires statutory procedures, to ensure the company’s standardized operations, the board of directors has asked Ms. Wang Shuang, a director, to act as chairman and legal representative, and has authorized her to sign relevant documents on behalf of the company. The interim term runs from the date the board meeting approves it until the date when the election of the new chairman is finalized.

Ms. Wang Shuang’s temporary handover means that before Wang Liang completes the formal procedures for his director appointment, she will take on a key role in the company’s corporate governance.

Whether the newly appointed president Wang Liang can lead the company out of the trough of the cycle, and how Ms. Wang Shuang will stabilize governance expectations during the transition period, will be the focus of the market going forward.

The Daily Economic News