Core Viewpoint - Huafeng Chemical's proposed asset restructuring plan worth 6 billion yuan was rejected by shareholders, highlighting growing concerns over high valuations and financial practices [2][3]. Group 1: Restructuring Proposal - The restructuring plan involved acquiring Zhejiang Huafeng Synthetic Resin Co., Ltd. and Zhejiang Huafeng Thermoplastic Polyurethane Co., Ltd., which faced significant opposition from minority shareholders [2]. - The valuation increase for the target assets was exceptionally high, with Huafeng Synthetic Resin at 506.96% and Huafeng Thermoplastic at 478.49% [2]. - Prior to the transaction, both companies distributed a total of 2.016 billion yuan in dividends, raising their debt ratios significantly, with Huafeng Synthetic Resin's debt ratio increasing from 60.48% to 75.75% and Huafeng Thermoplastic's from 71.44% to 85.21% [2]. Group 2: Management Response - Huafeng Chemical's management defended the acquisition prices by emphasizing the market position, profitability, and technological capabilities of the target companies [3]. - The management stated that the dividend distribution was based on accumulated undistributed profits and did not affect the ongoing operations of the target companies [3]. - The company plans to continue pursuing the asset injection of the target companies into the listed entity by December 2026 [3]. Group 3: Shareholder Dynamics - The rejection of the restructuring proposal reflects a broader trend where minority shareholders are increasingly asserting their rights, with 45 companies facing 93 proposal rejections in 2024, a year-on-year increase of 104% [4]. - This shift indicates that minority shareholders are evolving from passive participants to active governance players, driven by improved awareness of their rights and enhanced information disclosure mechanisms [4]. - Future trends may see companies more attuned to the interests of minority shareholders, leading to more democratic and transparent governance practices [5]. Group 4: Future Governance Strategies - Huafeng Chemical aims to prevent similar failures in future restructuring efforts by enhancing transparency and communication with shareholders [6]. - The company plans to utilize various channels for investor communication, including public disclosures and dedicated investor hotlines [6].