Core Viewpoint - Zheng Qizhong, the controlling shareholder of Zhenai Meijia, plans to transfer control of the company after nearly five years since its IPO, leading to a suspension of trading starting November 5 [1][2]. Group 1: Company Control and Management - Zhenai Meijia's controlling shareholder, Zhenai Group, is in discussions to transfer control, which may result in a change of the actual controller [2][3]. - Zheng Qizhong has been the chairman of Zhenai Meijia since its establishment in 2010 and has held various leadership roles in Zhenai Group since 2003 [2][3]. - The potential change in control is seen as a strategic move to bring in a new shareholder with better foresight and resource integration capabilities [2][3]. Group 2: Financial Performance - Zhenai Meijia has experienced a decline in net profit for two consecutive years, with revenues of approximately 979 million, 953 million, and 879 million yuan from 2022 to 2024, and corresponding net profits of about 155 million, 106 million, and 75.8 million yuan [3]. - However, in the first three quarters of this year, the company reported a revenue of 724 million yuan, a year-on-year increase of 16.16%, and a net profit of approximately 230 million yuan, a significant year-on-year increase of 310.28% [3]. - The company’s major products include blankets, carpets, and bedding, with a focus on home textile development and sales [2][3]. Group 3: Related Companies - Zheng Qizhong is also the actual controller of Huading Co., which he acquired in 2022, further diversifying his business interests [5][6]. - Huading Co. has faced its own challenges, with a revenue drop of 40.57% and a net profit decline of 42.11% in the first three quarters of 2025 [6]. - The financial struggles of Huading Co. are attributed to cyclical fluctuations in the nylon industry, affecting raw material costs and sales prices [6].