Bei Ke Cai Jing·2025-11-26 12:13Core Viewpoint - The conflict between Ping An Group and Huaxia Happiness has become public, highlighting governance issues and differing interests regarding the company's pre-restructuring process [1][2][9]. Group 1: Conflict Background - The dispute escalated following two announcements made by Huaxia Happiness on November 17, revealing that creditor Longcheng Construction Engineering Co., Ltd. applied for the company's restructuring due to its inability to repay debts [3][4]. - The court has accepted the pre-restructuring application, and Huaxia Happiness indicated "no objection" to this process [3][5]. Group 2: Governance and Compliance Issues - Ping An's representative, Wang Wei, publicly stated he was unaware of the announcement regarding the restructuring, claiming it violated company governance procedures [5][10]. - The core of the dispute revolves around whether the pre-restructuring process required board approval, with differing interpretations of regulatory guidelines [10][12]. Group 3: Financial Oversight and Transparency - The Huaxia Happiness debt committee authorized Ping An Asset Management to conduct a special financial due diligence on the company, addressing concerns over the transparency of debt resolution [6][7]. - Huaxia Happiness responded by stating it would cooperate with the temporary management team but could not define its obligation to comply with the financial committee's additional due diligence [8]. Group 4: Historical Context and Financial Performance - The relationship between Ping An and Huaxia Happiness has deteriorated over time, with significant financial losses for Huaxia Happiness leading to Ping An's substantial exposure [16][17]. - The company's stock price has plummeted from over 20 yuan to around 2 yuan, resulting in a significant market capitalization loss [17]. Group 5: Future Outlook - The restructuring process is expected to be complex, involving various stakeholders, including creditors and minority shareholders, indicating a challenging path ahead for Huaxia Happiness [21].