SIASUN(SZ:300024) Xin Lang Zheng Quan·2025-08-19 10:21Core Viewpoint - The controversy surrounding the high salary proposal of 2 million yuan per month for the chairman of Borante Robotics, Yin Rongzao, has exposed significant governance issues within the company and sparked a broader reflection on corporate governance boundaries in China's capital market [1][5]. Group 1: Salary Proposal and Company Performance - The board of Borante Robotics rejected Yin Rongzao's proposal for a fixed monthly salary of 2 million yuan, which would amount to an annual salary of 24 million yuan, over 7% of the company's projected revenue for 2024 [1][2]. - Yin Rongzao's previous proposal to allocate all future net profits (minus 1 yuan) as personal bonuses was criticized as a "plundering" act by the company's tenth-largest shareholder, Junlan Investment [1][2]. - The company's financial performance has deteriorated significantly, with revenue dropping from 447 million yuan in 2020 to 201 million yuan in 2023, and net profit shifting from a profit of 73.83 million yuan to a loss of 125 million yuan [2][3]. Group 2: Governance and Control Issues - The governance crisis is rooted in a power struggle, with Yin Rongzao controlling approximately 40% of the voting rights through a fund he established, effectively privatizing the company's governance structure [4][5]. - Following the dissolution of the "Rongzao No. 1 Fund," which returned voting rights to original investors, Yin Rongzao lost control over Borante, prompting him to modify company bylaws to restrict shareholder influence [4][5]. - The company's governance structure has been severely compromised, with key management and technical teams being forced to liquidate their holdings, further entrenching Yin Rongzao's control [4][5]. Group 3: Market Implications and Future Outlook - The Borante incident coincides with a critical moment for corporate governance in China's capital market, as new regulations are being proposed to impose stricter constraints on executive compensation, particularly for loss-making companies [5][6]. - The case highlights multiple deficiencies in corporate governance, including the use of complex financial instruments to undermine shareholder rights and the malicious modification of company bylaws [5][6]. - Despite the governance issues, Borante still holds significant industry value, ranking third in domestic shipments in the robotics sector, with 87,000 units sold in July alone and 150 million yuan in cash reserves [6].