ST Changyuan has completed a sweeping overhaul of its senior management team. After the new chairman, Yang, took office on July 1, the company made a concentrated round of appointments for executive president, vice presidents, chief financial officer, and board secretary. The reshuffle follows a major internal control crisis in which then-chairman Wu Qiquan misappropriated a total of 1.087 billion yuan of listed company funds, leading to an adverse opinion on the company's internal controls in its 2024 annual financial report and the imposition of ST status on its shares from April 30, 2025. The newly appointed executive president Shi Rui, CFO Yang Jing, board secretary Yang Huan, and vice president Feng Liang come from state capital systems, multiple listed companies, and within Changyuan itself, covering finance, capital, and business lines. The company expects a core net profit of 80 million to 110 million yuan in the first half of 2026, but core net profits for 2023, 2024, and 2025 were 90 million yuan, negative 668 million yuan, and negative 853 million yuan respectively, indicating lingering concerns over its operating fundamentals. Industry insiders note that the state-backed executives will need time to integrate with the existing team, systemic internal control deficiencies cannot be eradicated in the short term, and the ST label raises financing costs. The new leadership faces the dual task of improving information disclosure, restoring confidence, and optimizing business operations.
Changyuan Group LtdInternal control crisis and ST status due to fund misappropriation, with new state-backed management facing short-term integration challenges and lingering operational concerns.
Qingdao Tianneng Heavy Industries Co Ltd