Led by the former "Nanjing's richest man" Ji Changqun, China High-Speed Transmission's request for the accountant to resign was rejected, and he insists he remains the company's auditor.

Red Star Capital Bureau, March 3 — Recently, Hong Kong-listed company China High-Speed Transmission (00658.HK) announced that the board of directors has proposed to dismiss the current auditor, Guo Wei Certified Public Accountants LLP (referred to as “Guo Wei”), and to appoint Bai Chun Certified Public Accountants LLP (referred to as “Bai Chun”) as the new auditor.

The reason for this is that the controlling shareholder, Fengsheng Holdings (holding 71.08%), strongly questioned the procedures used to appoint Guo Wei earlier, believing they violated the company’s articles of association and the spirit of listing rules, thereby depriving shareholders of their approval rights.

The company has communicated the resolutions of the board and audit committee to Guo Wei, requesting its resignation as auditor. However, Guo Wei has neither voluntarily resigned nor indicated any intention to cease serving as auditor, insisting that it remains the company’s auditor until officially dismissed.

In this situation, the company will submit a proposal to dismiss Guo Wei for shareholder approval at a special general meeting.

Major Shareholder-led, Rejection of Auditor Resignation

Guo Wei Insists “Still the Company’s Auditor”

Previously, on September 7, 2025, the company issued a notice stating that the resolution to reappoint Tianshi Hong Kong Certified Public Accountants LLP as auditor was not approved at the annual general meeting, resulting in a temporary vacancy in the auditor position. To fill this gap, the company appointed Guo Wei as the new auditor until the conclusion of the next annual general meeting.

However, since that announcement, the controlling shareholder Fengsheng has strongly opposed, questioning the validity of Guo Wei’s appointment, claiming that the process violated the company’s articles of association and listing rules, and deprived shareholders of their approval rights.

Fengsheng Holdings explicitly stated it does not support Guo Wei as the company’s auditor and prefers to appoint its own auditor, Bai Chun.

Most of the company’s directors resolved at the board meeting on February 13, 2026, to convene a special shareholder meeting as soon as feasible to review and approve the proposed change of auditor for the 2025 financial year.

The announcement also disclosed internal voting details: all directors except Ye Xingming attended the board meeting. Li Zubin, Liu Zhengyang, Xie Wenjie, and Lu Yuanzhu voted in favor, while two directors, Hu Yueming and Jiang Jianhua, voted against. Notably, Hu Yueming, Jiang Jianhua, and Ye Xingming were among the directors who had appointed Guo Wei at that time.

It is important to note that the company has communicated the resolutions of the board and audit committee to Guo Wei, requesting its resignation. Guo Wei has not voluntarily resigned nor indicated any intention to cease serving as auditor, insisting it remains the company’s auditor until officially dismissed, and has not provided any acknowledgment letter.

In this context, the company will propose to dismiss Guo Wei at the shareholder special meeting for approval.

The sudden change of auditor has directly delayed the financial reporting process: the company has clearly stated it cannot publish the 2025 annual results before March 31, 2025. The new auditor, Bai Chun, is expected to complete the audit work by late May at the earliest. Therefore, the company will suspend trading starting at 9:00 a.m. on April 1.

Director Hu Yueming expressed concern that the suspension could adversely affect the group’s operations and noted potential negative impacts. Nonetheless, the company stated it will do its best to cooperate with the auditors, expedite the publication of annual results and annual report, and apply to the Hong Kong Stock Exchange for the resumption of trading.

Board “Major Reshuffle”

Victory in the Control Battle for Nango Gear

It is reported that China High-Speed Transmission is the parent company of Nanjing High-Speed Gear Manufacturing Co., Ltd. (“Nango Gear”), a global leader in wind power gearboxes.

Over the past year, the battle for control over Nango Gear, a core asset, has been ongoing between the original board of China High-Speed Transmission and its controlling shareholder Fengsheng Holdings, led by founder Hu Yueming and his son Hu Jichun.

On the night of January 16, China High-Speed Transmission announced a personnel change, completing a board reshuffle. The result indicates that the “Fengsheng faction,” controlled by former “Nanjing tycoon” Ji Changqun, has gained the upper hand.

Out of the original 11 directors, 8 resigned, and 4 new directors joined the board, forming a 7-member board with 3 remaining directors. Among them, core personnel Hu Yueming was allowed to remain as an executive director but was excluded from the three major committees. Remaining directors include non-executive director Ye Xingming and independent non-executive director Jiang Jianhua. The control dispute over China High-Speed Transmission has thus come to an end.

Hu Yueming, photo from Nango Gear

Data shows that in 2016, Fengsheng Holdings acquired over 70% of China High-Speed Transmission at HKD 10.95 per share, a 46.6% premium over the market price, making Ji Changqun, chairman of Fengsheng, the actual controller. At that time, the original founder Hu family still managed the company.

The personnel changes at China High-Speed Transmission attracted widespread attention due to its dominant position in the wind gearboxes sector, with core business relying heavily on Nango Gear. Data indicates that in the first half of 2025, China High-Speed Transmission’s sales revenue was approximately RMB 9.979 billion, a 1.8% decrease year-on-year, with wind power gearbox equipment sales increasing 61.5% to about RMB 8.867 billion. Roughly, wind gearbox products accounted for nearly 90% of the company’s revenue.

(This article does not constitute any investment advice; operate at your own risk.)

Editor: Hou Chunping, compiled from public sources and Securities Times

Reviewed by: He Xianju