Caixin reported on November 1st (by reporter Wu Chao) that Sinofibers Technology (300777.SZ), which is embroiled in rumors of 'internal strife', is witnessing an escalation and publicization of internal conflicts.

According to the announcement made by Sinofibers Technology in the evening today, the board of directors (temporary emergency) meeting resolution believed that Ms. Wen Yuefang is no longer suitable for the position of company's general manager due to personal reasons. The decision to dismiss Ms. Wen Yuefang from the position of company's general manager; before appointing a new general manager, Chairman Yang Yonggang will temporarily assume the position of the company's general manager and act as the legal representative of the company in accordance with the 'Company Articles of Association', overseeing the company's daily operations.

Caixin journalists have observed that a Douyin account named 'Wen Yuefang', self-introduced as the 'legal representative, general manager, vice chairman, and chief engineer of Sinofibers Technology', continuously released multiple videos this afternoon, directly pointing out conflicts between 'Wen Yuefang' and Chairman Yang Yonggang.

A document signed by 'Wen Yuefang' on every page states: 'As the company's chairman, Yang Yonggang should have devoted himself wholeheartedly to the company's development, but he is only keen on participating in various social activities, pursuing reputation and personal interests. He deliberately packages himself in various ways, greatly exaggerating his contribution and role in the company, seriously misleading the public.'

Since September this year, Chairman Yang Yonggang, ignoring the key moment when the company is fully committed to ensuring product delivery, has repeatedly convened various meetings, spread false information, manipulated the board of directors, attempting to forcibly remove the general manager's position, severely disrupting the production and operation order, causing serious dissatisfaction among the cadres and employees within the company.

'Wen Yuefang' also stated that the reason Yang Yonggang 'forcibly removed' her was: 'According to the company's knowledge, Yang Yonggang personally involved in a major violation of laws and regulations case currently under investigation by the discipline inspection commission, and has been repeatedly asked to assist in the investigation. At this moment, he is eager to seize control of the company through various extreme means, wanting to shift his personal actions to the company, making the company take the blame, to reduce his own guilt. I firmly oppose this behavior that severely damages the interests of the listed company and investors. This is the fundamental reason for the direct conflict between Yang Yonggang and me.'

Another document uploaded by 'Wen Yuefang' is a 'Statement', which shows: 'We are mid-to-senior level management and backbone employees of Sinofibers Technology Co., Ltd. We were shocked to learn yesterday that the company's chairman suddenly proposed to dismiss Wen Yuefang from the position of general manager, strongly opposed it, and firmly resisted!' The 'Statement' was signed by more than 30 individuals, and each fingerprint was affixed with the signing date of September 27, 2024.

According to the disclosure of the company, the deliberation results show that the motion "On the dismissal of the company's general manager Wen Yuefang" received 5 in favor, 2 against, and 0 abstentions. The dissenting votes were cast by Wen Yuefang and Peng Jisheng.

Wen Yuefang questioned the composition of the Nominating Committee members and the legality of the board secretary's performance, believed that the reasons for dismissal were unfounded, and emphasized her contributions to the company and irreplaceability. Peng Jisheng believed that there were flaws in the board's convening procedures and considered Wen Yuefang to be a qualified and excellent general manager who is crucial to the company.

In addition, sinofibers technology also announced that due to inadequate custody by the management, the company lost one seal of sinofibers technology Co., Ltd. (record number: 3204000049119) and one seal of the legal representative (record number: 3204000049123) recently. Both have now been declared invalid. The company has reported to the public security authorities and will promptly go through the reissuance procedures for the seals and legal representative seals.

Public information shows that sinofibers technology's main products are high-performance carbon fibers and fabrics, mainly used in the aviation and aerospace fields. According to the recently disclosed financial report, the company achieved revenue of 0.533 billion yuan in the first three quarters, an increase of 33.26% year-on-year; net profit attributable to the parent company was 0.231 billion yuan, a decrease of 5.59% year-on-year; cash flow from operating activities net amount was 0.105 billion yuan, a decrease of 84.67% year-on-year.

It is understood that in previous financial reports of sinofibers technology, Wen Yuefang was described as "the company's main founder and chief technology officer." Up to now, Yang Yonggang and Wen Yuefang directly hold (excluding indirect holdings) 10.8611 million shares and 9.44 million shares of the listed company, accounting for 2.47% and 2.15% of the total share capital, respectively. sinofibers technology stated that this dismissal will not have a significant adverse impact on daily operations, and relevant work will proceed steadily to ensure supply in line with established targets.