Billion-Dollar Company Internal Power Struggle Escalates! Zhensheng Technology Undergoes Major Executive Reshuffle, General Manager Casts Abstention Vote for Himself

Source: Times Weekly Report Author: Zhou Songqing

At a critical moment of the board reorganization and annual report preparation, Sichuan female billionaire He Yan has made her move again.

On the evening of March 11, Zhenxin Technology (300101.SZ) announced that the company held the first extraordinary meeting of the seventh board of directors, approving proposals such as “Election of the Chairman of the Seventh Board of Directors and Change of Legal Representative” and “Election of Members of the Special Committees of the Seventh Board of Directors.”

At this extraordinary board meeting, director Liang Litao, nominated by the controlling shareholder Guoteng Group, was elected as Chairman of Zhenxin Technology’s seventh board, and also served as the company’s legal representative. Director Zheng Lingyi, also nominated by Guoteng Group, became the company’s Chief Financial Officer.

Source: Tuchong

This means that after the return of the actual controller He Yan, she has secured key positions within Zhenxin Technology.

The struggle for actual control of Zhenxin Technology has lasted over seven years, involving internal conflicts within Guoteng Group, with He Yan, who holds 51%, as the ultimate controller, and the founding management team (Mo Xiaoyu, Xie Jun, Xu Jin, Bai Jie), holding a combined 49%.

However, on the same night, Zhenxin Technology also disclosed that former director Mo Ran sued the company, requesting the invalidation of the resolution passed at the temporary shareholders’ meeting on February 12. At that meeting, a new board of directors was elected, with three non-independent directors nominated by Guoteng Group and two independent directors.

The internal control struggle of Zhenxin Technology is expected to continue.

On March 12, Zhenxin Technology’s stock plummeted 7.04%, closing at 23.11 yuan per share, with a total market value of 13.12 billion yuan.

Disputes over the election of the new chairman and CFO remain significant

Zhenxin Technology’s announcement shows that the first extraordinary meeting of the seventh board was held on March 11 via on-site voting, with all directors present. The meeting was chaired by Liang Litao, nominated by more than half of the directors (Liang Litao, Li Xinjun, Zheng Lingyi, Long Zongzhi, Yi Mao, all nominated by Guoteng Group). Senior management and securities affairs representatives of the company attended.

He Yan achieved a significant victory at this meeting, with proposals for the election of the chairman, CFO, and committee members all approved. However, disagreements persisted.

In the vote to elect Liang Litao as the new chairman of Zhenxin Technology, 5 votes were in favor, 4 against.

Non-independent directors Xie Jun, Yang Guoyong, Yang Zhang, and independent director Li Yi cast dissenting votes. They believed that the chairman and legal representative are critical positions, and according to industry licensing regulations, candidates should undergo pre-appointment qualification review and training; after the change, the company’s industry license must be updated; Liang Litao did not participate in training or provide legal documents such as commitments or qualification explanations, and the company did not conduct pre-qualification review; passing this proposal could jeopardize the company’s industry license.

Independent director Li Yi also suggested that the change of chairman and legal representative should be postponed until after the completion of annual report preparation and industry license review to ensure a smooth transition.

Disagreements also arose over the election of the CFO.

The meeting elected Zheng Lingyi as CFO (financial officer), but non-independent directors Xie Jun, Yang Guoyong, Yang Zhang voted against, and independent director Li Yi abstained, citing that Zheng Lingyi did not provide relevant review materials or undergo pre-appointment training.

The meeting also elected members for the audit committee, remuneration and assessment committee, nomination committee, and strategy committee, mostly nominees favored by He Yan’s side.

Notably, the meeting approved establishing a new Board Office responsible for centralized management of company seals and licenses, including the company’s official seal, contract seal, financial seal, invoice seal, business license, and other key certificates. The office’s personnel will be appointed by the chairman and filed with the board.

Surprisingly, during this management election, Zhenxin Technology’s General Manager Yang Guoyong abstained from voting for himself.

The proposal to appoint Yang Guoyong as general manager was approved, but he abstained, citing that since Xie Jun is no longer chairman, he lacks the stability to lead the core business team. Internal conflicts among major shareholders persist, and he believes he cannot effectively lead the team or promote sustainable development.

Yang Guoyong has been involved in Zhenxin Technology’s operations for 17 years, previously serving as the company’s board secretary for a long time. After the resignation of former secretary Chen Sili on March 5, Yang Guoyong took over the role.

Former director files lawsuit to invalidate election

The control of Zhenxin Technology remains unresolved, as former directors have initiated legal action to invalidate the February 12 resolution.

On March 11, Zhenxin Technology announced that it received a summons from the Chengdu High-tech Zone People’s Court, which accepted a lawsuit filed by shareholder and sixth board director Mo Ran, seeking to declare the resolution of the February 12 special shareholders’ meeting invalid.

On February 12, Zhenxin Technology held its first temporary shareholders’ meeting for 2026, electing the seventh board of directors early. The final result was that He Yan’s side of Guoteng Group occupied 5 seats, and the original management team held 3 seats. On February 13, the employee representative congress elected Yang Zhang as employee director, but He Yan’s side still held the majority.

Mo Ran argued that the resolution of the February 12 meeting involved nominations that harmed the legal rights of other shareholders besides the controlling shareholder; some nominees allegedly did not meet director qualification standards; and influence from the controlling shareholder affected shareholder voting, which should be deemed invalid.

Mo Ran is the son of former chairman Mo Xiaoyu and was previously a director of the company.

Regarding evidence for Mo Ran’s lawsuit, an internal source from Zhenxin Technology told Times Weekly on the afternoon of March 12 that there is relevant proof, but as of press time, they had not shown it to reporters.

Cui Wenguan, founding partner of Sichuan An Gong Law Firm, stated on the afternoon of March 12, “Mo Ran’s lawsuit is a counterattack against He Yan’s side’s personnel arrangements at the February 12 shareholders’ meeting, and it continues the power struggle over control of Zhenxin Technology. The outcome of this lawsuit will be a key battle in the fight for control, but the timing of the lawsuit is also a critical factor. During this process, ensuring normal business operations and protecting the rights of small and medium investors are major concerns.”