Mei Ri Jing Ji Xin Wen·2025-09-02 14:30Core Viewpoint - The control struggle over ST Xinchao (SH600777) continues despite the completion of the board restructuring, as highlighted in the recently disclosed 2025 semi-annual report, revealing a decline in performance amid ongoing litigation and governance issues [1][2][5]. Group 1: Financial Performance - In the first half of 2025, ST Xinchao reported operating revenue of 3.973 billion yuan, a year-on-year decrease of 8.85% [1] - The net profit attributable to shareholders was 959 million yuan, down 18.22% year-on-year [1]. Group 2: Control and Governance Issues - The new controlling shareholder, Yitai B, holds 50.10% of the shares and aims to address internal governance issues, but faced resistance from existing management [2][3]. - A temporary shareholders' meeting was held on July 24, 2025, where a significant majority (81.49%) supported the early restructuring of the board and supervisory committee [3]. - The newly elected board includes four non-independent directors from Yitai B, with Zhang Junyu appointed as chairman [3][4]. Group 3: Legal and Operational Challenges - The transition of control has led to significant operational challenges, with the new management facing resistance during the takeover of the Beijing office, where previous management did not cooperate [6][7]. - The core asset dispute centers around the oil and gas assets in the U.S., with ongoing litigation in U.S. courts, including three key cases [7][8]. - A "status quo order" from a Delaware court mandates that the U.S. subsidiary maintain normal operations and restricts significant transactions without prior consent [8]. Group 4: Future Outlook and Risks - The new board is actively working to address issues raised in the previous year's audit report to improve governance and financial reporting quality [9]. - The company faces a delisting risk due to an "unable to express opinion" audit report for the 2024 fiscal year, which could lead to termination of listing if the situation does not improve in 2025 [8].