Tens of thousands of people watch but no one makes a move—why did West King Food's 200 million shares fail to sell at auction?

March 31, a judicial auction of approximately 200 million shares held by the controlling shareholder of Xiwang Food Holding, Xiwang Group, ended in a failed auction due to no bids.

The auction, which was split into 43 lots on the auction platform and drew more than 10k onlookers, ended in disappointment because no one registered to bid.

Before the auction began, a written risk warning issued by the audit institution—Mingguocheng—pushed Xiwang Food, known as the “No. 1 corn oil stock,” to the brink of delisting risk. If Xiwang Food’s 2025 annual internal control audit report is issued with a negative opinion, the company’s stock trading will be subject to other risk warnings after the 2025 annual report is disclosed. If the company’s 2025 annual audit report is issued with an inability to express an opinion or a negative opinion, the company’s stock trading will be subject to delisting risk warnings after the 2025 annual report is disclosed.

After news that Xiwang Food might be marked with ST was disclosed, the company’s share price fell sharply. On March 30, Xiwang Food’s stock hit the daily trading limit downward; on March 31, the decline exceeded 6%; and on April 1, the decline exceeded 7%. Calculations show that over these three trading days, Xiwang Food’s total market capitalization decreased cumulatively by approximately 755 million yuan. By the close of April 1, Xiwang Food’s share price was 2.5 yuan per share, and the company’s total market capitalization was approximately 10k yuan.

On April 1, staff from Xiwang Food’s securities department told Caijing reporter from Beike that the subsequent disposal plan for the shares that failed to be auctioned would follow the official announcements. The company is actively communicating with the audit institution, working to eliminate risk matters affecting the types of opinions in the 2025 annual audit report and the 2025 internal control report. “Our company’s current production and operations are normal, and management and employees are relatively stable.”

**“Watch the commotion”**with no bids

Xiwang Food’s approximately 200 million shares fail to be auctioned

At 10:00 a.m. on March 30, Xiwang Food Holding’s controlling shareholder, Xiwang Group Co., Ltd. (abbreviated as “Xiwang Group”), held 200,065,333 shares of the company, accounting for 99.01% of the total shares it holds, 18.53% of the company’s total share capital, and the shares were publicly auctioned on JD.com online.

Beike Caijing reporter noted that the auction platform split approximately 200 million shares into 43 lots. The smallest lot had 1.6 million shares, priced at 4.1888 million yuan; the largest lot had 5 million shares, priced at 13.09 million yuan. There were 34 lots for 5 million shares.

It is worth mentioning that if the share auction in this case is completed, Xiwang Group would hold 20,100,48 shares of Xiwang Food, accounting for 0.19% of the company’s total share capital. Its concerted-action party, Shandong Yonghua Investment Co., Ltd., would hold 14,028,262 shares, accounting for 1.30% of the company’s total share capital. Wang Di directly holds 4,104,062 shares, accounting for 0.38% of the company’s total share capital. Xiwang Group and its concerted-action parties would hold a total of 20,142,372 shares, accounting for 1.87% of the company’s total share capital, which may lead to changes in the company’s controlling shareholder and actual controller.

Xiwang Food shares being auctioned.

As of March 13, 2026, the cumulative situation of shares of Xiwang Food held by Xiwang Group and its concerted-action parties that have been auctioned (including the shares auctioned in this auction).

Related announcements show that the shares of Xiwang Food held by Xiwang Group and its concerted-action parties have not been auctioned for the first time.

The auction announcement mentions that in August 2019, Xiwang Group provided shares of Xiwang Food it held as collateral to obtain financing of 2.7B yuan from Binzhou Key Enterprises Development Fund Partnership Enterprise (Limited Partnership), with a maturity date of August 30, 2022.

On March 31, the auction results were released. Although more than 10k people watched, there were no bids registered. This auction of approximately 200 million shares of Xiwang Food ended in a failed first attempt.

On April 1, staff from Xiwang Food’s securities department told Caijing reporter from Beike that whether the shares that failed to be auctioned would be subject to continued execution of other judicial procedures by the Jinan Intermediate People’s Court of Shandong Province has some uncertainty. “Please refer to the announcement.”

In the view of Bai Wenxi, Vice Chairman of the China Enterprise Capital Alliance, Xiwang Food currently faces multiple risks, and this failed auction is an inevitable result. He told Caijing reporter from Beike: “For an acquirer, this is not only buying a ‘shell,’ but also taking over a business quagmire. It’s completely reasonable for capital to stand by and observe.”

Losing money for four consecutive years

Xiwang Food may be marked with ST

With the controlling shareholder’s shares frequently auctioned, as a listed company, Xiwang Food has not been doing well in recent years.

In the A-share market, Xiwang Food was once known as the “No. 1 corn oil stock.” The financial reports show that starting in 2010, the company began nationwide advertising and promotion and sales for its corn oil brand. From the beginning of its establishment, it developed a three-step strategy: “Step one is to become China’s No. 1 corn oil brand; step two is to build China’s first high-end edible oil brand; and step three is to shape China’s first healthy food brand.”

In 2016, Xiwang Food successfully acquired Canadian Kerr, marking Xiwang Food’s transition from a small, billion-yuan-scale oil business in the past to a large health industry with a trillion-yuan market scale. In 2018, Nielsen retail research data showed that the market share of Xiwang corn germ oil was close to 30%, firmly securing the top seat as the first corn germ oil brand.

In recent years, Xiwang Food’s performance has been poor. It has continued to incur losses from 2022 to 2024, and it is expected to experience a profit shortfall in 2025. In 2025, Xiwang Food expects to record a net profit attributable to shareholders of listed companies with a loss ranging from 1.32 billion yuan to 880 million yuan. After deducting non-recurring gains and losses, the net profit is expected to record a loss ranging from 1.3 billion yuan to 880 million yuan.

Xiwang Food said that the main reasons for the change in its 2025 performance are the continuously rising price of raw material whey protein and intensifying competitive pressure, causing the performance of its sports nutrition segment to fall short of expectations. Based on relevant regulations and following a prudence principle, the company expects to recognize impairment losses on intangible assets of approximately 950 million yuan to 1.5 billion yuan. The final impairment amount will be determined after auditing by audit institutions with the relevant qualifications engaged by the company.

Xiwang Food’s performance in recent years.

On March 27, Xiwang Food released an announcement stating that its 2025 annual audit institution, Beijing Zhongming Guocheng Certified Public Accountants (Special General Partnership) (abbreviated as “Zhongming Guocheng”), communicated with the company. The audit institution believes that “the company cannot provide sufficient and appropriate audit evidence, which will lead to an audit report with a non-unqualified opinion on the company’s financial statements. The final type of audit report opinion will be determined based on the implementation of necessary audit procedures as of the date of the audit report and obtaining sufficient and appropriate audit evidence. It issued a negative opinion on the effectiveness of internal controls over financial reporting as of December 31, 2025.”

According to the relevant regulations: if Xiwang Food’s 2025 annual internal control audit report is issued with a negative opinion, the company’s stock trading will be subject to other risk warnings after the 2025 annual report is disclosed. If the company’s 2025 annual audit report is issued with an inability to express an opinion or a negative opinion, the company’s stock trading will be subject to delisting risk warnings after the 2025 annual report is disclosed.

On the evening of April 1, Xiwang Food released an announcement stating that the audit work for its 2025 annual report is still ongoing. The company is actively cooperating with the audit institution’s annual audit work and is doing its best to try to eliminate risks affecting the types of opinions in the 2025 annual audit report and the 2025 internal control report.

Beijing News Beike Caijing reporter Yan Xia Editor Chen Li Proofreader Mu Xiangtong