XCEC(SH:600777) Mei Ri Jing Ji Xin Wen·2025-09-02 14:23Core Viewpoint - The control struggle over *ST Xinchao (SH600777) continues despite the recent board restructuring, with the company facing operational challenges and ongoing litigation following the acquisition by Yitai B shares [2][3][4]. Financial Performance - In the first half of 2025, *ST Xinchao reported revenue of 3.973 billion yuan, a year-on-year decline of 8.85%, and a net profit attributable to shareholders of 958 million yuan, down 18.22% year-on-year [2]. Control and Management Changes - Yitai B shares became the controlling shareholder with a 50.10% stake and aimed to address internal governance issues by restructuring the management [3][4]. - A temporary shareholders' meeting led to the election of four non-independent directors from Yitai B, marking a significant shift in decision-making power [4][5]. Shareholder Concerns - New management faces scrutiny from minority shareholders regarding the company's lack of dividends despite holding nearly 8 billion yuan in undistributed profits for 15 years [4]. Operational Challenges - The transition of control has been complicated, with the new management encountering resistance during the takeover of operations, particularly regarding the company's key U.S. oil and gas assets [6][7]. - The company’s assets are primarily located in the U.S., making control over the U.S. subsidiary crucial for the new management [7]. Legal Proceedings - The control dispute has escalated to the U.S. courts, with three key lawsuits currently in progress, including one initiated by Yitai B to protect the company's assets and ensure access to financial documents [8]. - A "status quo order" from a Delaware court mandates that the U.S. subsidiary must maintain normal operations and restricts significant transactions without prior consent [8][9]. Risk of Delisting - The company faces delisting risks due to an "unable to express opinion" audit report from its accounting firm for the 2024 fiscal year, which could lead to termination of its listing if not resolved in the 2025 audit [9].