ASIA CUANON(SH:603378) Mei Ri Jing Ji Xin Wen·2025-12-02 23:59Core Viewpoint - The company, Yashi Chuangneng, is facing significant financial difficulties, leading to the freezing of all shares held by its controlling shareholder and actual controller due to severe losses in employee stock ownership plans [1][2][5] Summary by Sections Company Shareholding and Freezing - Yashi Chuangneng's controlling shareholder, Shanghai Chuangnengming Investment Co., and actual controller Li Jinchong have had all their shares frozen, totaling 78.66 million shares (18.35% of total shares) and 20.30 million shares (4.74% of total shares) respectively [1] - This is the second instance of share freezing for both parties, with the first occurrence reported in October 2025 [1] Employee Stock Ownership Plans - The freezing is primarily due to two employee stock ownership plans that have incurred significant losses, leading to financial difficulties for the controlling shareholder [2] - The first employee stock ownership plan was launched in August 2020, holding 1.1571 million shares at an average price of 47.25 yuan per share, while the second plan was initiated in 2021, holding 1.7525 million shares at an average price of 53.354 yuan per share [2][3] - The total investment in these plans amounts to approximately 148 million yuan [3] Financial Performance - Yashi Chuangneng's financial performance has been declining, with a projected revenue of 2.052 billion yuan in 2024, down 34.01% year-on-year, and a net profit loss of 329 million yuan [5] - In the first three quarters of 2025, the company reported revenue of approximately 397 million yuan, a decline of 76.97% year-on-year, with a net profit loss of 311 million yuan [5] Legal and Operational Challenges - The company has faced over 20 legal disputes in the second half of the year, primarily related to bill disputes, sales contracts, and pawn disputes [5] - The actual controller, Li Jinchong, has been restricted from high consumption on two occasions since July [5]