Core Viewpoint - The internal power struggle within the Shanshan Group, a major Chinese conglomerate, has escalated following the death of its founder, Zheng Yonggang, leading to significant financial losses and a potential bankruptcy situation for the company [1][10][20]. Group 1: Company Background - Zheng Yonggang transformed a debt-laden clothing factory into a leading brand in China's apparel industry within nine years after taking over in the early 1980s [3]. - The company, Shanshan, became the first publicly listed clothing company in China after successfully launching its brand through innovative advertising strategies [5]. - Zheng Yonggang foresaw challenges from international brands post-WTO accession and strategically shifted the company's focus towards the emerging lithium battery sector [6][8]. Group 2: Leadership Transition and Family Conflict - Following Zheng Yonggang's sudden death in 2023, his son, Zheng Ju, was appointed chairman, but a power struggle with his stepmother, Zhou Ting, ensued due to the lack of a formal will [12][16]. - Zhou Ting, as the first legal heir, initiated legal actions against Zheng Ju, leading to a protracted conflict that severely impacted the company's market value, which dropped from over 400 billion to around 200 billion [10][14]. - The internal conflict culminated in Zhou Ting assuming control of the company, with Zheng Ju losing all his shares, marking a dramatic shift in leadership [17][20]. Group 3: Financial Impact and Future Outlook - The company faced a significant decline in market value, with over 200 billion evaporated due to the internal strife and external market pressures [14][20]. - As of early 2025, Shanshan Group entered bankruptcy restructuring, highlighting the rapid decline from a once-thriving enterprise to a financially troubled entity within just over two years [18][20]. - The situation reflects broader challenges faced by private enterprises in China regarding succession and management stability following the unexpected death of a founder [22].