On August 14th, Finance Associated Press (Journalist: Fu Jing) reported that due to involvement in private lending disputes, the original actual controller of Guangdong Qunxing Toys (002575.SZ) was ultimately 'out'. Guangdong Qunxing Toys announced tonight that the company's shareholder Shenzhen Xinghe Data Technology Co., Ltd. (hereinafter referred to as 'Shenzhen Xinghe') held by Wang Sanshou, which holds 66.66% of the company's shares, has been completed transferred by judicial auction. Therefore, the company changed to a state of having no controlling shareholder nor actual controller.

The company announced that prior to the change in equity, Wang Sanshou, as the joint action of Chengdu Xinghe, Shenzhen Xinghe, and Beijing Jiulianhuan, collectively controlled 53.386 million shares of the listed company, with a disposable voting rights ratio of 8.31%; After the change in equity, Wang Sanshou and the joint action person collectively controlled a corresponding number of shares of 2.916 million shares, which only accounts for 0.45% of the total share capital of the listed company.

According to the shareholder structure data, after the equity change, among the top ten shareholders of the listed company, Shenzhen Xinghe, the largest shareholder, held 7.85% of the company's shares, controlled by Li Yue, a financial investor.

However, according to the company's announcement, it is not ruled out that Wang Sanshou and its joint action persons' equity holdings may further change in the next 12 months.

It is worth noting that Guangdong Qunxing Toys stated that Wang Sanshou himself cannot be contacted at present, so the short-form equity change report disclosed this time is compiled by the company based on the information it can obtain.

The main reason for this change in equity is the passive reduction caused by judicial auction, which has led to a decrease in the shareholding ratio of Wang Sanshou and its joint action persons. It is understood that Wang Sanshou's 66.66% equity in Shenzhen Xinghe was publicly auctioned on the Taobao judicial auction platform from 10:00 on June 12th to 10:00 on June 13th by Hangzhou Intermediate People's Court, and Li Yue won the auction with the highest bid.

According to Finance Associated Press, on the evening of June 2nd, Guangdong Qunxing Toys issued two consecutive announcements: Wang Sanshou is cooperating with the Beijing Public Security Bureau to assist in the investigation; Due to Wang Sanshou's private lending disputes, the 66.66% equity of Shenzhen Xinghe held by him will be publicly auctioned by judicial auction, which may lead to changes in the company's holding shareholder and actual controller.

The company subsequently announced that Wang Sanshou was sued by Li Yue for private lending disputes, and Li Yue applied for the auction of Wang Sanshou's 66.66% equity in Shenzhen Xinghe. The company further announced that the financial investor Li Yue won the above-mentioned equity with the highest bid.

It is worth noting that, according to media reports, as early as March 2020, an investor named Li Yue planned to purchase 5.43% of Guangdong Qunxing Toys' equity held by Shenzhen Xinghe for about RMB 0.202 billion for financial investment reasons. This matter caused regulatory attention and stock price fluctuations, but ultimately ended in failure in October of the same year.

Finance Associated Press found on QCC platform that Li Yue became the actual controller of Shenzhen Xinghe Data Technology Co., Ltd. on July 13th this year, and public information is relatively limited.

Finance Associated Press also noted that Guangdong Qunxing Toys stated that Li Yue has issued a 'Letter of Commitment Not to Seek Control of Listed Companies'. However, it is still uncertain whether the aforementioned Li Yue who applied for auction of equity, financial investor Li Yue, and the investor Li Yue who intended to acquire the equity of Guangdong Qunxing Toys are the same person.

The company stated tonight that the state of having no controlling shareholder nor actual controller will not have a negative impact on daily operations, and will not affect the independence of the company in terms of business, assets, institutions, personnel and finance. According to the previous disclosure by Guangdong Qunxing Toys, Wang Sanshou did not hold any position in the company and did not affect normal business operations, and the company's production and operation are currently normal.

However, looking at the company's business performance, the net income has continued to decline by double digits year-on-year since 2021. At the same time, the company expects the first half of the year's net loss attributable to shareholders of the parent company to be between RMB 5.5 million and 8 million, and it has turned into a loss compared with the same period last year. The company stated in its half-year performance forecast that the first half of the year's investment in the 'Smart-calculate' business and the construction of a professional team incurred higher operating costs.

In January of this year, Guangdong Qunxing Toys Joint-Stock announced its entry into computing power, which prompted the Shenzhen Stock Exchange to quickly issue a notice of concern. In fact, Guangdong Qunxing Toys Joint-Stock is currently engaged in the main business of liquor sales, leasing of its own properties, property management and entrepreneurship park operation services. However, it has previously attempted to transform into multiple fields including mobile games, energy, eco-friendly concept, military industry, data, internet, medical, education, sse high-end equipment manufacturing 60 index and other industries, but all ended in failure, and its original toy business has long been divested.