Kinetic Medical(SZ:300326) Sou Hu Cai Jing·2025-05-11 07:14Core Viewpoint - The ongoing shareholder conflict at Kailitai has led to significant governance turmoil, highlighted by the recent election of Wang Chong as the new chairman, following the resignation of Cai Zhongxi after just one day in office, indicating a power struggle between major shareholders [1][3][4]. Group 1: Shareholder Conflict - Since March 2025, the largest shareholder, Yongjin Investment, and the second-largest shareholder, Shanghai Xinchengyi, have been in fierce competition for control of Kailitai [3]. - The recent board election saw former chairman Yuan Zheng lose his position with only 3.07% of the votes, while Wang Chong was elected with 4 votes in favor and 2 abstentions, reflecting the ongoing division among shareholders [3][4]. - The conflict centers around key issues such as related party transactions and investment decisions, particularly regarding the buyback of shares in Shanghai Ligetai, which has been a point of contention between the two shareholder factions [4]. Group 2: Financial Impact - The prolonged shareholder disputes have materially impacted the company's financial health, with a reported revenue of 985 million yuan in 2024, a year-on-year increase of 2.96%, but a net loss of 106 million yuan, a decline of 193.8% [5]. - The loss was primarily attributed to inventory impairment provisions of 16.91 million yuan and fluctuations in the fair value of equity investments [5]. - Despite a net profit of 21.75 million yuan in Q1 2025, the auditing firm issued a qualified opinion on the financial statements, raising concerns about internal controls and the disclosure of related party transactions [5]. Group 3: Governance and Management Challenges - Frequent changes in senior management have severely hindered Kailitai's strategic execution, with key executives leaving the company since March 2025, resulting in a leadership vacuum [5]. - Wang Chong, after his election, emphasized the need for internal control rectification and external investment, with the immediate goal of removing the ST designation from the company's stock, although specific measures remain unclear [5][6]. - The governance issues are compounded by the need for consensus among shareholders and effective improvements in internal controls to navigate the challenges posed by industry changes and ST risks [6].