Guangdong PAK (SZ:300625) Nan Fang Du Shi Bao·2025-08-06 14:28Core Viewpoint - The internal conflicts within Sanxiong Aurora have come to light, particularly during the recent board meeting regarding the election of the chairman, revealing significant divisions among the founding members [2][4][8]. Company Background - Sanxiong Aurora was founded in 1991 by four alumni from South China University of Technology, initially achieving success with electronic ballast products and later gaining prominence in the engineering lighting sector [3][4]. - The company went public in 2017, with annual revenues around 2.5 billion yuan and net profits between 230 million and 250 million yuan [3][4]. Boardroom Conflicts - The recent board meeting saw two proposals for the chairman position, with Zhang Yutao receiving 7 votes in favor and 2 against, the latter coming from founders Zhang Xianqing and Chen Songhui, who criticized Zhang Yutao's management [2][4]. - Chen Songhui has expressed concerns over organizational changes, citing a lack of communication and clarity in roles, which he believes could lead to inefficiencies and confusion within the company [4][5]. Financial Performance - Sanxiong Aurora's revenue has declined from 2.7 billion yuan in 2021 to 2.078 billion yuan in 2024, marking the lowest since its IPO [8][9]. - Net profit has also seen a significant drop, with a reported loss of 15.31 million yuan in the first quarter of 2025, a 207.88% decrease year-on-year [9][10]. - The company has faced challenges due to a downturn in the real estate market, which heavily impacts its home lighting business, alongside increased competition leading to overcapacity [10][11]. Shareholder Sentiment - The ongoing performance decline and board disputes have led to a loss of confidence among shareholders, as evidenced by the near-unanimous rejection of executive compensation proposals at the 2024 shareholder meeting [10][11]. - The stock price has plummeted over 80% from its peak of 65 yuan per share, resulting in a market capitalization loss of approximately 13 billion yuan [11].