Jin Rong Jie·2025-06-30 11:35Core Viewpoint - The recent shareholder meeting of Shenzhou Holdings (00861.HK) was marked by significant unrest, with shareholders protesting against CEO Guo Wei, reflecting deep dissatisfaction with the company's governance and performance [1][2]. Group 1: Governance Issues - Guo Wei's personal marital disputes have raised concerns among shareholders regarding their impact on the company's governance and operations [2]. - The dismissal of Guo Wei's ex-wife, Guo Zhengli, from her COO position without board approval highlights serious internal governance issues within Shenzhou Holdings [2]. - The replacement of key executives in core departments following Guo Zhengli's departure indicates instability in management [2][4]. Group 2: Financial Performance - Shenzhou Holdings reported a net loss of 254 million RMB for 2024, primarily due to a significant loss of 524 million RMB from its subsidiary, Shenzhou Information [8]. - Shenzhou Information faced substantial goodwill impairment losses of 365 million RMB and asset impairment losses exceeding 400 million RMB due to failed acquisitions [8]. - Shenzhou Digital, a non-wholly owned subsidiary, also experienced a decline in net profit by 35.77% in 2024 and 7.51% in the first quarter of 2025 [8]. Group 3: Shareholder Concerns - The freezing of over 77 million shares held by Guo Wei, representing 11.56% of Shenzhou Digital's total shares, due to marital disputes has raised alarms about management stability [3][4]. - State-owned shareholders, including Guangzhou Urban Investment and Guangdian Yuntong, have expressed dissatisfaction with the management, demanding explanations for significant losses [5][6]. - The ongoing financial struggles and governance issues have led to a critical juncture for Shenzhou Holdings, with potential implications for its future governance and control structure [11].