Core Viewpoint - The ongoing dispute between China High-Speed Transmission (00658.HK) and its major shareholder, Fengsheng Holdings (00607.HK), has taken a dramatic turn with the postponement of a special shareholders' meeting originally scheduled for April 24, 2023, now delayed until June 30, 2028, raising concerns about governance and shareholder rights [1][6][8]. Group 1: Background of the Dispute - Fengsheng Holdings acquired over 70% of China High-Speed Transmission's shares in 2016 at a premium of 46.6% to the market price, leading to a power struggle between the two parties [3]. - The conflict escalated in March 2023 when Fengsheng Holdings proposed to remove the current chairman and his father from their positions [3][4]. - The core asset in question is Nanjing High-Speed Gear Manufacturing Co., which has undergone changes in its governance structure that may affect Fengsheng Holdings' control [4][5]. Group 2: Reasons for Postponement - The board of China High-Speed Transmission cited several reasons for the postponement of the special shareholders' meeting, including opposition from other shareholders, a petition from 6,857 employees, and concerns from suppliers and customers [5][7]. - The board also indicated that ongoing legal actions and an independent investigation into 6.64 billion RMB in overdue receivables necessitated additional time before proceeding with the meeting [6][7]. Group 3: Legal and Regulatory Considerations - The postponement of the special shareholders' meeting until 2028 is unprecedented and raises questions about compliance with Hong Kong company law and regulations [2][9]. - Legal experts have noted that if the board's decision to delay is perceived as an attempt to maintain control, it could lead to claims of unfair prejudice against shareholders [9]. - The Hong Kong Stock Exchange and the Securities and Futures Commission have not yet responded to inquiries regarding the regulatory stance on this matter [9].
中国高速传动控制权之争未了局：罢免管理层的特别股东大会延期至2028年