ST Hengxin announced that its controlling shareholder and actual controller, Meng Xianmin, has filed a lawsuit against the company in the Beijing Dongcheng District People's Court, seeking to revoke items 8 through 17 of the 2025 Annual Shareholders' Meeting Resolutions adopted on June 30, 2026, and the Resolution of the 35th Meeting of the Eighth Board of Directors adopted on July 3, 2026. The resolutions under challenge primarily involve the removal and election of company directors. Previously, Meng Xianmin had proposed removing Tang Xujun as a non-independent director and electing Yuan Hui to replace him, while also removing three independent directors, Pang Jinwei, Xu Xibin, and Zhu Wei, and electing Hu Yongping, Li Xuefei, and Liu Nian as their replacements. However, the voting results showed that his proposals received approximately 44% of votes in favor and about 54% against. Meanwhile, a proposal by minority shareholder Liu Jianyu and others to remove Meng Nan, Meng Xianmin's son, as a non-independent director received roughly 57% approval. The company also disclosed that 11.6 million shares held by Meng Xianmin will be subject to judicial auction, accounting for 18.55% of his total holdings and 1.92% of the company's total share capital. If the auction is completed, his stake will decrease from 10.34% to 8.42%. This will not trigger a change in control for now, but further judicial auctions could potentially affect control. The case has not yet been heard, and the company stated it will actively defend itself and monitor developments.
Hengxin Mobile BusinessActual controller sues to overturn shareholder and board resolutions, creating legal uncertainty and potential control instability.