Core Viewpoint - ST New潮 is a striking example in China's A-share market, with its assets primarily located in the U.S., raising questions about its governance and financial practices [3][6]. Group 1: Company Overview - ST New潮 is registered in Yantai, Shandong, but operates its board in Beijing, with 99.91% of its assets located in Texas oil fields, USA [3]. - The company has not distributed dividends to domestic shareholders for 15 consecutive years, while its U.S. subsidiary employees enjoy high salaries, averaging 1.75 million RMB annually [4][11]. Group 2: Financial Background - From 2015 to 2017, ST New潮 raised 12.5 billion RMB through three rounds of financing, investing the entire amount in U.S. oil and gas assets, which now produce over 60,000 barrels daily and are valued at 33.8 billion RMB [6][9]. - The domestic parent company is burdened with 2.4 billion RMB in debt and has frozen accounts, while the U.S. subsidiary reported a net profit of 7.376 billion RMB from 2022 to Q3 2024 [8][9]. Group 3: Governance and Control - Although ST New潮 has no official controlling shareholder, it is effectively controlled by a pair of brothers from Hunan, who have manipulated board positions to maintain control over the U.S. subsidiary [10]. - The company has faced significant challenges in auditing its financials, with previous auditors unable to verify the authenticity of its U.S. assets, leading to a "ST" designation [13]. Group 4: Market Activity and Future Prospects - Despite the looming risk of delisting, major energy companies are still interested in acquiring stakes in ST New潮, driven by the value of its U.S. oil fields [14]. - The company’s assets are located in a region with significant shale oil reserves, but the uncertainty surrounding control raises concerns about the viability of any potential acquisitions [14].