The control of the 40 billion leading company was changed, and the second generation of the post-90s generation became the actual controller of two listed companies, and the children inherited 11.7 billion market value stocks

China Times

2024-06-24 15:43Published on the official account of Beijing China Times

The control of the 40 billion leading company was changed, and the second generation of the post-90s generation became the actual controller of two listed companies, and the children inherited 11.7 billion market value stocks

A month after the death of Xu Gang, the original actual controller, Longbai Group (002601. SZ) and Oriental Zirconium (002167.SZ) The dust has settled on the ownership of the two listed companies, and Xu Gang's 34-year-old daughter Xu Ran has become the actual controller of the above two companies. At present, the market value of Longbai Group is 44.5 billion yuan, and the market value of Oriental Zirconium Industry is 4.525 billion yuan, with a total of 50 billion yuan.

All the shares of Longbai Group held by Xu Gang before his death were inherited by his daughter Xu Ran and minor son Xu Moumou. According to the closing price on June 21, the market value of his daughter's inherited shares was 9.3 billion yuan, and the market value of his son's inherited shares was 2.4 billion yuan.

In the first quarter of 2024, the price increase of titanium dioxide drove the performance of Longbai Group to increase rapidly, and in the second quarter, the transmission of titanium dioxide volume and price was not smooth. For the price trend of titanium dioxide in the second half of the year, Sun Shanshan, an analyst of titanium dioxide at Zhuochuang Information, told the "China Times" reporter that titanium dioxide is expected to show a trend of falling first and then rising, and then stabilizing and then rising slightly.

The actual controllers of the two companies changed

On the evening of May 21, Longbai Group announced that the company received a notice from the family of Xu Gang, the controlling shareholder, actual controller and honorary chairman of the company, that Xu Gang passed away on May 20, 2024 at the age of 61 due to ineffective medical treatment.

According to the announcement, Xu Gang directly holds 627 million shares of Longbai Group, accounting for 26.25% of the company's total shares, and is the controlling shareholder and actual controller of the company. The shares of the company held by Xu Gang will go through the inheritance procedures in accordance with laws and regulations, and the company will fulfill its information disclosure obligations in a timely manner according to the progress of subsequent matters.

A month later, things took a new turn. On the evening of June 20, Longbai Group issued an announcement that Xu Gang did not make a will before his death, nor did he sign a "bequest and maintenance agreement" with others, all the shares held by Xu Gang before his death were inherited by his daughter Xu Ran 500 million shares, accounting for 20.95% of the company's total share capital, and his son Xu Moumou, a minor, inherited 127 million shares, accounting for 5.30% of the company's total share capital.

According to the closing price on June 21, the share price of Longbai Group is 18.65 yuan per share, with a market value of 44.5 billion yuan, and the market value of the shares inherited by the children reaches 11.7 billion yuan, of which the market value of the shares inherited by the daughter is 9.3 billion yuan, and the market value of the shares inherited by the son is 2.4 billion yuan.

Since Mr. Xu Moumou is a minor, all the rights corresponding to the company's shares obtained by his legal inheritance are exercised by his mother, Ms. Wang Xia, in accordance with the law. According to the Voting Rights Entrustment Agreement signed by Ms. Wang Xia and Ms. Xu Ran, Ms. Wang Xia entrusts Ms. Xu Ran to exercise all the above rights until October 23, 2028, that is, the date of the 18th birthday of Mr. Xu Moumou, a minor.

Through the above operations, Xu Ran holds a total of 627 million voting rights of Longbai Group, accounting for 26.25% of the company's total voting shares, and Xu Ran has also become the controlling shareholder and actual controller of the company. Since Longbai Group holds 23.51% of the shares of Oriental Zirconium and is the controlling shareholder of the company, after this change in equity, Xu Ran has also become the actual controller of the two listed companies.

The second generation of the post-90s and 34-year-old took over

Xu Ran, who was born in 1990, has been working in Longbai Group for ten years.

From October 2014 to March 2017, Xu Ran served as the business manager of the company, a director of Billions (Europe) in November 2014, a director of Billions (America) in May 2015, and an assistant to the president of the company from March 2017 to April 2023.

In March 2023, the announcement of the general election of the board of directors of Longbai Group showed that due to age and considering that the company has established a complete set of management system and cultural system, Chairman Xu Gang, who was born in 1963, will no longer serve as a director of the company after the expiration of his term.

At the same time, Mr. He Benliu, Ms. Xu Ran, Mr. Wu Pengsen, Mr. Shen Qingfei, Mr. Chen Jianli and Mr. Wang Xudong were nominated as candidates for non-independent directors of the eighth session of the Board of Directors. So far, Xu Ran has entered the board of directors of Longbai Group, and in April 2023, Xu Ran will be the vice chairman of Longbai Group and the general manager of the sales company.

The change of the board of directors has also made the management of Longbai Group "younger".

Longbai Group pointed out in the announcement that under the leadership of the older generation of entrepreneurs, the company has tirelessly learned the international and professional governance standards, established a sound modern enterprise management system, and formed corporate governance mechanisms such as decision-making system, supervision system, incentive and restraint mechanism, risk control system and information disclosure mechanism.

In order to maintain the company's vitality and competitiveness for a long time, realize the beautiful vision of "Excellence, Global, Centennial" Longbai, and further optimize corporate governance, the company has imposed restrictions on the nomination and age of non-independent directors, that is, in principle, those over the age of 60 are not allowed to be nominated or serve as non-independent directors of the company, which is written into the Articles of Association.

The world's largest titanium dioxide production capacity

Longbai Group is a large-scale diversified enterprise group dedicated to the R&D and manufacturing of new materials such as titanium, zirconium and lithium, as well as the deep integration of industries, and has been deeply involved in the chemical industry for more than 30 years and has become a leader in the titanium industry.

The company has an existing titanium dioxide production capacity of 1.51 million tons/year, making it the world's largest titanium dioxide producer in terms of production capacity; With a titanium sponge production capacity of 50,000 tons, the second phase of Yunnan Guoti's annual output of 30,000 tons of rotor grade titanium sponge intelligent manufacturing technology transformation project (15,000 tons) and the second phase of Gansu Guoti's 30,000 tons/year rotor grade titanium sponge technology upgrading and transformation project (15,000 tons) are undergoing equipment commissioning, and the company's titanium sponge production capacity will increase to 80,000 tons/year after the completion of the project.

Longbai Group has also expanded the lithium battery material business, with an existing iron phosphate production capacity of 100,000 tons/year, lithium iron phosphate production capacity of 50,000 tons/year, graphite anode material production capacity of 25,000 tons/year, and graphitization production capacity of 50,000 tons/year. However, the management said that the development of the company's new energy sector is now in a difficult moment, the new energy market is overcapacity, and the industry as a whole is in a loss period.

According to the 2023 annual report, the operating income of titanium dioxide of Longbai Group reached 7.77 billion yuan, accounting for 66.31% of the main business income. In the first quarter of 2024, benefiting from the rising price of titanium dioxide, Longbai Group's performance grew rapidly, and during the reporting period, it achieved operating income of 7.294 billion yuan, a year-on-year increase of 4.52%; net profit was 951 million yuan, a year-on-year increase of 64.15%.

After the first quarter, titanium dioxide prices failed to continue their upward trend. The staff of the secretary office of the board of directors of Longbai Group told the "China Times" reporter that the price of titanium dioxide fell in April, but it was actually okay in May.

Sun Shanshan said in an interview with a reporter from the China Times, "In 2024, the growth rate of the real estate industry will decline, although the price of titanium dioxide will rise in the first quarter, but because the growth of foreign exports has not continued, coupled with the weak growth of the domestic coating industry, the volume and price transmission of titanium dioxide in the second quarter will not be smooth." ”

In Sun Shanshan's view, titanium dioxide is expected to show a trend of falling first and then rising, and stabilizing and then rising slightly. July is still the off-season for demand, although domestic titanium dioxide companies will also have centralized maintenance, but the demand is weak, and the price is still under pressure. Demand in the fourth quarter is expected to further improve, giving strong support to titanium dioxide prices.

Wang Anqi, an analyst of titanium dioxide at Longzhong Information, analyzed to reporters that the short-term domestic titanium dioxide market may be weakly organized. "The raw material side is running firmly, the high cost compresses the space for titanium companies to reduce prices, the supply side is slightly reduced, and the pressure of oversupply may be loosened, but with the EU anti-dumping policy is about to land, the competitiveness of the domestic titanium dioxide market will decline, and the production enterprises will face serious competition from oversupply."

Editor-in-charge: Li Future Editor-in-chief: Zhang Yuning

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