Divorce Dispute! Controlling Shareholder's Shares Frozen

Century Hengtong (301428) Chairman Yang Xinghai’s 11.33 million shares (32.81% of his holdings) have been judicially frozen due to a divorce dispute.

Part of the Chairman’s Shares Frozen by Judicial Authorities

On the evening of March 18, Century Hengtong announced that through the China Securities Depository and Clearing Corporation Limited Shenzhen Branch system, it was found that some shares held by the company’s controlling shareholder, actual controller, and Chairman Yang Xinghai had recently been judicially frozen. The frozen shares amount to 11.33 million, accounting for 32.81% of his holdings and 11.48% of the company’s total share capital. It is understood that the freezing of Yang Xinghai’s shares is mainly due to his personal divorce dispute with his spouse. As of the announcement date, Yang Xinghai held 34.53 million shares, representing a 35% stake. The judicial freezing period for these shares is from March 17, 2026, to March 16, 2029.

Century Hengtong stated that, so far, Yang Xinghai has not received any written materials or legal documents from the Shenzhen Futian District People’s Court regarding the judicial freezing of the shares.

Vice President and CFO Resigned

In early March, Century Hengtong had just announced that the company’s board of directors received a resignation letter from Vice President and CFO Lei Fuquan. Due to reaching the statutory retirement age, Lei Fuquan officially applied to resign from his positions as Vice President and CFO. After resigning, he will hold no positions in the company or its subsidiaries. Nominated by General Manager Yang Xingrong, and after qualification review by the Nomination and Audit Committees, the company’s board of directors approved the appointment of Ms. Lü Haiying as the new CFO, with a term starting from the date of approval until the end of the current fourth board term.

First Annual Loss Since Listing in 2025

Century Hengtong is a company focused on information technology services, leveraging its self-developed technology platform and extensive service network to provide value-added and business expansion services to financial institutions, telecom operators, internet companies, and large enterprises such as Gaosu Group, which have a massive number of individual users. The company was listed on the ChiNext Board of the Shenzhen Stock Exchange on May 19, 2023. In its first year after listing, Century Hengtong achieved impressive results with both revenue and net profit growing. However, in the second year, it showed signs of fatigue, with 2024 net profit attributable to shareholders shrinking by 23.55% to 61.91 million yuan. On January 30 this year, the company forecasted a net loss of 35 to 60 million yuan for 2025, marking its first annual loss since going public.

Century Hengtong stated that the company and its subsidiaries received tax decision notices from tax authorities requiring additional payments of 71.43 million yuan in taxes and 23.50 million yuan in late fees. These payments will be recorded as current period expenses in 2025, expected to reduce the net profit attributable to shareholders of the listed company by approximately 80 million yuan.

During the reporting period, the company continued to optimize its business portfolio and resource allocation, focusing on strategic investments in emerging high-potential businesses. These adjustments have caused a temporary impact on operating performance, resulting in a year-over-year decline in overall revenue and a narrowing of profit margins.