Compensation exceeds 4.7 billion yuan! First-instance verdict in the dispute between the new and old controlling shareholders of Zongshi Zhuang

A massive debt dispute between the new and former controlling shareholders of Huitong SuiZhuang (SZ002383, stock price 12 yuan, market value 8.884 billion yuan) is pushing founder Guo Xinping toward losing all his shares.

According to the latest announcement released by Huitong SuiZhuang on the evening of March 12, 2026, the company’s founder and largest shareholder, Guo Xinping, has a first-instance judgment in a debt lawsuit with the company’s controlling shareholder, Zhengzhou Airport Economic Zone Xinghui Electronic Technology Co., Ltd. (hereinafter referred to as “Xinghui Electronics”). The court ordered Guo Xinping to repay principal, interest, and damages totaling over 4.7 billion yuan.

Currently, Guo Xinping holds 22.21% of the company’s total shares, approximately 164 million shares, all of which have been subject to first-round judicial freezing requested by Xinghui Electronics. If Guo Xinping fails to fulfill his debt obligations, this shareholding could face enforced liquidation.

First-instance court rules Guo Xinping owes over 4.7 billion yuan

The separation between Huitong SuiZhuang and founder Guo Xinping seems to be entering a countdown.

On the evening of March 11, 2026, Huitong SuiZhuang issued a warning announcement revealing significant risks faced by Guo Xinping, who owns more than 5% of the shares.

The announcement states that due to debt disputes, the Intermediate People’s Court of Zhengzhou, Henan Province, has issued first-instance judgments in two related cases. The court ordered Guo Xinping and his controlled Zhengzhou Youhe Technology Co., Ltd. to repay the debts to creditor Xinghui Electronics. The two cases involve a principal of 3.346 billion yuan, with interest and damages totaling 1.417 billion yuan, amounting to over 4.76 billion yuan in total.

The other party in this debt dispute is Xinghui Electronics, the current controlling shareholder of Huitong SuiZhuang.

Public information shows that Xinghui Electronics became the controlling shareholder of Huitong SuiZhuang in 2019 through share transfers and voting rights entrustment. The actual control of the company shifted from Guo Xinping to the Management Committee of Zhengzhou Airport Economic Comprehensive Experimental Zone. Guo Xinping remains the largest shareholder.

As of the announcement date, Guo Xinping held about 164 million shares, accounting for 22.21% of the total share capital.

Due to the debt issues mentioned above, Xinghui Electronics has applied to the court for the first round of judicial freezing of all shares held by Guo Xinping. The announcement clearly states that if subsequent judgments become effective and Guo Xinping fails to pay his debts in time, Xinghui Electronics has the right to apply for enforcement, which could lead to the forced reduction of Guo Xinping’s holdings.

Xinghui Electronics may acquire shares through judicial disposal

As the creditor and applicant for enforcement, Xinghui Electronics plays a key role in this event.

Huitong SuiZhuang stated in the announcement: “There is a possibility that controlling shareholder Xinghui Electronics may obtain some company shares through judicial disposal.”

This means that if Guo Xinping’s shares are eventually auctioned or go through other judicial procedures, Xinghui Electronics could naturally take over these shares, further consolidating its controlling position.

In fact, prior to the escalation of this debt dispute, Guo Xinping’s shares had already been heavily pledged and frozen. According to a January 5, 2026, announcement by Huitong SuiZhuang, 98.59% of Guo Xinping’s shares (about 162 million shares) were pledged to Xinghui Electronics, due to the debt dispute between the two parties. Additionally, all of his shares were under court-ordered freeze due to arbitration disputes with other companies by the Beijing First Intermediate People’s Court.

For the entrepreneur who founded Huitong SuiZhuang himself, this is not the only difficulty he has faced in recent years.

In July 2023, Huitong SuiZhuang announced that its shareholder Guo Xinping received a market ban decision from the China Securities Regulatory Commission. It was found that during Guo Xinping’s tenure as chairman and general manager, the company’s annual reports from 2017 to 2020 contained false records, with revenue, costs, and profits artificially inflated through fictitious transactions. The CSRC determined that Guo Xinping played a major role in these illegal activities, which were quite serious, and thus imposed a ten-year securities market ban on him.

In May of the same year, Guo Xinping was fined 4 million yuan and received a warning from the CSRC for these violations.

Huitong SuiZhuang stated that Guo Xinping is no longer holding any position in the company. Preliminary assessments suggest that the potential judicial disposal this time will not lead to a change in the company’s control or significantly impact its operations and governance structure.

The company also reminds that the relevant lawsuit judgments have not yet taken effect, and the final outcome remains uncertain.