NBSS(SH:600884) Xin Lang Cai Jing·2025-08-05 11:51Core Viewpoint - The internal power struggle within Singshan Holdings following the sudden death of its founder, Zheng Yonggang, has led to significant declines in the company's market value and financial performance, with a notable drop in stock price and a shift in control among family members [3][5][10]. Group 1: Internal Conflict - Zheng Yonggang passed away in February 2023 without a will, leading to disputes over the distribution of his estate among six legal heirs [3][5]. - Zheng Ju, the founder's eldest son, was elected chairman shortly after his father's death, but faced opposition from his stepmother, Zhou Ting, who claimed to be the actual controller of the company [3][5]. - A brief reconciliation occurred in May 2023, resulting in Zhou Ting being elected as a director, and later, she took over as chairman while Zheng Ju became the vice chairman [5][10]. Group 2: Financial Performance - The company's market value plummeted from over 400 billion to around 200 billion within two years due to internal conflicts and industry downturns [3][5]. - In 2024, Singshan Holdings reported a revenue of 18.68 billion, a year-on-year decrease of 2.05%, and a net profit loss of 367 million, a significant drop of 147.97% from a profit of 765 million in 2023 [5][8]. - Major factors contributing to the losses included investment losses from associated companies amounting to approximately 506 million, asset impairment losses of about 394 million, and increased expenses totaling around 368 million [5][8]. Group 3: Debt Issues - The internal strife has severely impacted the controlling shareholder, Singshan Group, leading to a slowdown in its expansion in the new energy sector and financial difficulties [8][10]. - Singshan Group faced a debt crisis, with over 95% of its debt maturing within a year, totaling 12.62 billion, including 12.04 billion in short-term debt [8][10]. - The company entered judicial reorganization in February 2025 after creditors filed for restructuring due to multiple debt defaults [8][10]. Group 4: Future Uncertainties - Despite entering reorganization, Singshan Holdings maintains that its operations remain unaffected, emphasizing independence from its controlling shareholder [10]. - The ongoing decline in shareholding due to judicial auctions and convertible bond conversions has raised concerns about potential changes in control [10]. - Recent investments by notable individual investors have sparked speculation about a possible turnaround for the company, as it is perceived to meet the criteria for distressed investing [10][11].