FSM(SZ:002818) Zhong Guo Jing Ying Bao·2025-12-01 12:22Core Viewpoint - The recent detention of two senior executives at Fusenmei raises concerns about potential systemic internal control deficiencies within the company, despite the management's assertion that these issues are unrelated to the company's operations [1][6]. Group 1: Executive Detention - Fusenmei announced that its Vice President and Board Secretary, Zhang Fengshu, is under investigation and has been detained, following the earlier detention of Chairman Liu Bing in July [2][3]. - During the detention, Zhang Fengshu is unable to fulfill his duties, and the company has appointed the CFO, Wang Hong, to temporarily take over these responsibilities [2]. - The company has stated that it is currently unaware if the detentions are related to the same case and will continue to monitor the situation [3]. Group 2: Shareholding Structure - Liu Bing, the controlling shareholder and chairman, along with his family members, holds over 80% of Fusenmei's shares, raising questions about concentrated family power and governance issues [4][6]. - The three family members, Liu Bing, Liu Yunhua, and Liu Yi, are all founders of Fusenmei and have a significant influence on the company's operations [5][6]. - Fusenmei maintains that it operates independently from its controlling shareholders and has a robust governance and internal control mechanism in place [6][7]. Group 3: Company Operations - Despite the detentions, Fusenmei asserts that its overall operations and governance remain normal, with no significant impact on production or management [7]. - The company emphasizes that all other directors and senior management are continuing their duties without interruption [7].