Langxin Electric's IPO review approved by Beijing Stock Exchange, Silver Wheel Co., Ltd. Chairman Xu Xiaomin and his son Xu Zhengzheng are recognized as joint actual controllers | Yangtze River Delta Capital Bureau

Article | Sina Finance Shanghai Station Shili

As the final stage of rushing to list on the Beijing Stock Exchange, the control rights of Jiangsu Langxin Electric Co., Ltd. have suddenly been brought back into focus.

On March 11, the Listing Committee of the Beijing Stock Exchange announced that Langxin Electric’s IPO application was approved.

Just before this critical milestone, its controlling shareholder Zhejiang Yinlun Machinery Co., Ltd. issued a notice retroactively recognizing Vice Chairman Xu Zhengzheng as a co-actual controller, forming a joint control structure with Chairman Xu Xiaomin. This delayed recognition shifted the original story of listing, which focused on performance growth, unexpectedly toward corporate governance issues.

Langxin Electric was established in Jiangsu, mainly producing automotive electronic fans and motor assemblies, with a domestic passenger car electronic fan market share of 20.97%. The company submitted an application for listing on the Beijing Stock Exchange in June 2025, which was accepted within two days.

According to disclosed data, from 2022 to 2024, the company’s operating revenue was 668 million yuan, 1.031 billion yuan, and 1.301 billion yuan, respectively, with net profits attributable to parent after non-recurring items of 43.06 million yuan, 78.76 million yuan, and 109 million yuan.

The core figure behind Langxin Electric is Xu Xiaomin, who has been at the helm of Yinlun Co., Ltd. for many years.

Xu Xiaomin’s career nearly parallels the company’s development. Born in 1975, he started working at Tiantai Machinery Factory, rising from cooling system workshop director to factory director. After the company was restructured into Zhejiang Yinlun Machinery Co., Ltd. in 1999, Xu Xiaomin joined the core management team and has served as chairman since 2004. Over more than twenty years, this originally local mechanical factory has gradually grown into an important supplier of automotive thermal management systems, with Xu Xiaomin becoming a key figure in the Yinlun system.

However, at the initial stage of Langxin Electric’s listing application, the control rights structure did not reflect a “parent-child joint control” pattern.

In the draft prospectus signed in June 2025, Langxin Electric explicitly identified Xu Xiaomin as the sole actual controller. Although Xu Zhengzheng indirectly held 5.34% of shares through the employee shareholding platform “Tiantai Yinlian,” he was not recognized as a co-actual controller. The Beijing Stock Exchange’s initial inquiry directly asked for an explanation of why he was not recognized as a co-actual controller and whether there was any regulatory circumvention.

In the initial response, the issuer and intermediaries explained that Xu Zhengzheng’s voting rights held through Tiantai Yinlian had been fully delegated to Yinlun Co., Ltd. via agreement, and since he did not hold a position in the issuer, he did not constitute actual control. However, this explanation did not fully dispel regulatory concerns.

Subsequently, the situation changed.

In February 2026, Yinlun Co., Ltd. issued a notice stating that, based on the standard in the Company Law of “the person who can actually control the company’s actions,” Xu Zhengzheng was retroactively recognized as a co-actual controller from August 2020, the time when he became Vice Chairman of Yinlun Co., Ltd. Immediately afterward, Langxin Electric also announced that the company’s actual controllers had been adjusted to Xu Xiaomin and Xu Zhengzheng, acknowledging that the previous recognition was “not sufficiently prudent.”

This change meant that during multiple review stages after Langxin Electric submitted its listing application, the control rights structure initially disclosed did not fully reflect the actual situation.

The Beijing Stock Exchange’s Listing Committee ultimately approved Langxin Electric’s IPO, but the on-site inquiries focused on the stability of operating performance and related-party transactions with Yinlun Co., Ltd., including market prospects for automotive thermal management systems, changes in customer demand, and the fairness of related-party transactions.

In the capital market, the recognition of actual controllers has always been regarded as one of the core issues of corporate governance. For Langxin Electric, passing the listing review is only part of the process; subsequent registration by the China Securities Regulatory Commission is still required.

With the control rights structure being clarified, this auto parts company’s listing story has shifted from a simple performance growth narrative to a real-world test of family control and corporate governance.