On June 5, the chairman of a copper-clad laminate leading company with a market value of nearly 50 billion announced retirement.

Shengyi Technology announced this evening (June 5) that its chairman Liu Shufeng retired due to age reasons and no longer serves as chairman, chairman of the board's strategic committee, and member of the board nomination committee, or holds any other positions in the company.

It is understood that Liu Shufeng currently holds approximately 4.82 million shares of the company, accounting for approximately 0.2% of the total shares.

Born in 1955, Liu Shufeng joined Shengyi Technology in 1990. Prior to that, Liu Shufeng was a government official and held various positions, including clerk and deputy director at the Guangdong Foreign Trade Bureau from December 1975 to September 1984.

At the forefront of the reform and opening up, Liu Shufeng caught the first wave of "going out" in the 1980s and officially served as a director and general manager of Hong Kong YueShang Development Co., Ltd. in October 1984.

After joining Shengyi Technology, Liu Shufeng also served as deputy general manager of the state-owned enterprise Guangdong Foreign Trade Development Corporation, chairman of new materials enterprise Lianyungang Donghai Silicon Micro Powder Co., Ltd., and other positions.

Liu Shufeng has been working in the copper-clad laminate industry for 34 years. Under his leadership, Shengyi Technology has developed from a small factory producing 600,000 square meters of copper-clad laminates per year to a listed group company with an annual output of 120 million square meters, net assets of 13.983 billion yuan, annual net income of over 400 million yuan, and over ten thousand employees.

As of the close on June 5, the total market value of Shengyi Technology was 48.142 billion yuan.

Shengyi Technology stated in the announcement that Liu Shufeng personally drafted hundreds of rules and regulations, laid a solid foundation for Shengyi Technology's management, and continuously promoted management reforms. He paid close attention to the improvement of management during the operation process, led Shengyi Technology onto the path of steady development for more than 30 years, overcame industry crises in various stages, and promoted high-quality development in different historical periods.

Shengyi Technology has no actual controller at present. In terms of shareholder structure, the company's largest shareholder is Guangdong Provincial Guangxin Holding Group Co., Ltd., a state-owned legal person, with a 25.12% stake. In addition, Dongguan Guohong Investment Co., Ltd. holds a 13.71% stake, and Weihua Electronics Co., Ltd. holds a 12.53% stake.

According to sources familiar with the matter, Guangdong State-Owned Assets had previously sought to acquire a controlling stake in Shengyi Technology.

At the business level, in 2023, the electronics industry faced relatively high inventories on the production chain and consumer slowdown in demand for electronic products, together with industry expansion to release production capacity, leading to oversupply in the market and intensified competition in the industry.

Shengyi Technology experienced varying degrees of revenue decline from 2021 to 2023. In 2023, the company's revenue was 16.586 billion yuan, a year-on-year decrease of 7.93%; net income attributed to shareholders was 1.164 billion yuan, a year-on-year decrease of 23.96%.

However, since the fourth quarter of last year, downstream demand has been relatively strong, Shengyi Technology's orders have been relatively full, and the sales volume of copper-clad laminates has increased. In addition, the company's performance has improved as it continues to optimize its product structure. In the first quarter of this year, its revenue was 4.42 billion yuan, a year-on-year increase of 18%; net income attributed to shareholders was 390 million yuan, an increase of 58% from the same period last year.

Shengyi Technology is the controlling shareholder of STAR-listed company Shengyi Electronics. According to the amended 2023 annual report of Shengyi Electronics, Shengyi Technology holds 523.482175 million shares, accounting for 62.93% of the total shares. During the period under review, Shengyi Electronics purchased main raw materials, copper-clad laminates, and semi-cured sheets from related parties Shengyi Technology and its subsidiaries, with purchase amounts accounting for 23.46% of the total amount of similar purchases during the same period.

The Science and Innovation Board Daily noted that as of the deadline for the article, Shengyi Electronics had not yet provided relevant explanations for the above situation.