On the evening of July 3, Jialong Shares (002495.sz) disclosed that the company’s board of directors recently received a letter submitted by shareholder Lin Pingtao. In the letter, Lin Pingtao proposed to remove Lin Changhao from his position as director, and at the same time nominated Lin Changchun as a non-independent director candidate to the company's board of directors.
It is worth noting that Lin Changhao and Lin Changchun are both sons of Lin Pingtao, chairman of Jialong Co., Ltd.
Source: Jialong Shares
Are the father and son "turning against each other"? The relevant inside story is not yet clear to the outside world, but after the news of suspected discord within the family broke out, the share price of Jialong Co., Ltd. has plummeted. As of the close of trading on July 4, the share price fell to 1.42 yuan/share, a decrease of 4.7%, and the total market value was 1.329 billion. Yuan.
Lin Pingtao’s wife Xu Qiaochan abstained from voting on the proposal
Regarding the proposal of his father Lin Pingtao to remove Lin Changhao and nominate Lin Changchun, in the vote of the Jialong Board of Directors, Lin Pingtao’s wife Xu Qiaochan (the mother of Lin Changhao and Lin Changchun) abstained from voting.
She said: I have no clear opinions on the above motion and have no intention to participate in the voting, so I abstained from voting. The official website of
Jialong Co., Ltd. shows that the company is located in Puning City, Guangdong Province and is mainly engaged in the production, research and development and sales of chicken powder, chicken essence and other condiments. Judging from the personnel at the top of the company, we can see obvious traces of a family business.
According to the 2023 annual report of Jialong Shares, five members of the Lin family are the company’s controlling shareholders and actual controllers, namely Lin Pingtao (75 years old), Xu Qiaochan (73 years old), Lin Changqing (53 years old), Lin Changchun (51 years old) and Lin Changhao (46 years old) age). Lin Pingtao and Xu Qiaochan are husband and wife and the parents of Lin Changqing, Lin Changchun and Lin Changhao.
Among them, Lin Pingtao is currently the company's chairman, Xu Qiaochan is currently the company's vice chairman and other positions, and Lin Changhao is currently the company's director and president.
In terms of shareholding ratio, Lin Pingtao is the company's largest shareholder, with a shareholding ratio of 17.15%; Lin Changhao, who is proposed to be dismissed, is the second largest shareholder, with a shareholding ratio of 8.36%; Xu Qiaochan is the third largest shareholder, with a shareholding ratio of 6.09 %; Lin Changqing is the fourth largest shareholder, with a shareholding ratio of 4.82%; nominated Lin Changchun is the fifth largest shareholder, with a shareholding ratio of 1.88%, which is significantly lower than the top four shareholders.
The Lin family was on the Hurun Rich List in 2015, 2016 and 2017, with wealth values of 3.3 billion yuan, 3 billion yuan and 2.1 billion yuan respectively.
It is worth noting that on April 18, the board of directors of Jialong Co., Ltd. had just completed its reelection. At that time, Lin Pingtao, Xu Qiaochan, and Lin Changhao were elected as non-independent directors of the company. In other words, Lin Changhao has held the director position for just over two months.
In addition, Lin Pingtao did not propose to remove Lin Changhao from his position as president.
All five members of the Lin family have worked in the company.
During Lin Changhao’s tenure as president, performance has declined.
Judging from the history of Jialong Shares, all five members of the Lin family have worked in the company. The
prospectus shows that in July 2001, Lin Pingtao and Lin Changqing invested 500,000 yuan each to establish Jialong Food, the predecessor of Jialong Shares. Since then, all five members of the Lin family have successively obtained shares in the company and have held different positions in the company. In 2010, Jialong shares were successfully listed on the Shenzhen Stock Exchange.
In January 2015, Lin Changchun resigned after his term as director and president expired. Since then, he has devoted his energy to personal entrepreneurship. Lin Changhao took over as president of the company. The positions of Lin Pingtao and Xu Qiaochan have not changed.
After Lin Changhao took over as the company's president, judging from the performance data, various performance indicators of Jialong Shares were stable but declined, perhaps due to the impact of the general environment.
Jialong Shares’ 2015-2023 Performance
Big changes in performance have appeared in the last two to three years.
In 2022, Jialong’s performance dropped significantly compared with the previous year. The annual report shows that the company's revenue in 2022 was 208 million yuan, a year-on-year decrease of 25.80%; in terms of profitability, it turned from profit to loss, with a net loss of 54.7698 million yuan that year. In 2023, Jialong's operating income will recover, reaching 260 million yuan, but it will still lose 44.71 million yuan. At the same time, the company's condiment sales and sales also reflect this performance fluctuation.
Condiment sales and sales of Jialong Co., Ltd. from 2015 to 2023 Source: Flush ifind
Non-recurring gains and losses are an important reason for the company's losses.According to the 2023 annual report, Jialong Co., Ltd. suffered operating losses due to its joint-stock company Qianhai Stock Exchange Holdings (Shenzhen) Co., Ltd. (hereinafter referred to as "Qianhai Stock Exchange"), resulting in a loss of 34.8661 million yuan in changes in fair value (the loss in 2022 was 49.666 million yuan) ).
Written by: Nandu Bay Financial News reporter Liu Changyuan
