Billion-Dollar Company's Internal Conflict Escalates, Zhenkexin Technology Undergoes Major Executive Reshuffle, CEO Casts Abstention Vote for Himself

Text | Times Weekly

At a critical moment right after the board of directors was restructured and the annual report was being prepared, 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, during which resolutions 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” were approved.

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

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% of the shares and is the de facto controller, fighting against the founding management team (Mo Xiaoyu, Xie Jun, Xu Jin, Bai Jie), which holds a combined 49%.

However, 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 power struggle at Zhenxin Technology is expected to continue.

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

Significant disagreements over the election of the new chairman and CFO

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). Other senior management and securities affairs representatives attended as observers.

He Yan achieved a major victory at this meeting, with resolutions on the election of the chairman, CFO, and committee members all approved. However, disagreements remained.

In the vote to elect Liang Litao as the new chairman, 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 a commitment letter or qualification explanation, and the company did not conduct a pre-qualification review. Approving this resolution could jeopardize the company’s industry license.

Li Yi also suggested that the company should complete the annual report and industry license review before proceeding with the change of chairman and legal representative 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, and 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, compensation 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 main company seal, contract seal, financial seal, invoice seal, business license, and other key certificates. The office’s personnel will be appointed by the chairman and reported to the board.

Surprisingly, during this management election, Yang Guoyong, general manager of Zhenxin Technology, abstained from voting for himself.

The resolution to appoint Yang Guoyong as general manager was approved, but he abstained, citing concerns that since Xie Jun no longer serves as chairman, he lacks the stability to lead the core team. Internal conflicts among major shareholders persist, and he believes he lacks the ability to lead operations and promote sustainable development.

Yang Guoyong has been involved in Zhenxin Technology’s management for 17 years, previously serving as company 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 power struggle over Zhenxin Technology’s control is ongoing, with former directors filing a lawsuit 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 case filed by shareholder and sixth board director Mo Ran, seeking to declare the resolution of the February 12, 2026, extraordinary shareholders’ meeting invalid.

On February 12, Zhenxin Technology held its first extraordinary shareholders’ meeting of 2026, electing the seventh board of directors early. The final result was that He Yan’s side of Guoteng Group occupied 5 seats, while 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 violated shareholders’ rights by nominating candidates who harmed the interests of other shareholders, and that some nominees lacked the qualifications to serve as directors. He also claimed that influence exerted by the controlling shareholder on voting should render the resolution 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 told Times Weekly on March 12 that there is relevant proof, but as of press time, it has not been shown to the reporter.

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 regarding the 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 control dispute, but the timing of the lawsuit is also a factor. During this process, ensuring normal business operations and protecting the rights of small and medium investors are major concerns.”