On July 21, the stock price of Zhejiang Meida Industrial Co., Ltd. (Zhejiang Meida) hit the limit down following a change in the actual controller of the company. The founding family collectively transferred 29.99% of the company’s shares, cashing out 1.29 billion yuan. This change led to a shift in the actual controller of the company.
Zhejiang Meida, known as the leading integrated kitchen company in China, released a “Simple Equity Change Report” on July 21. The report stated, “As Mr. Xia Zhisheng and Mr. Xia Ding plan to collectively transfer 193,750,889 shares of Zhejiang Meida, accounting for 29.99% of the total share capital of the company, resulting in a change in the equity held by the Information Disclosure Obligors. After this equity change, the Information Disclosure Obligors collectively hold 144,845,611 shares of the company, accounting for 22.42% of the total share capital.”
The announcement also noted, “After this transaction is completed, Shenzhen Star Blueprint directly holds 29.99% of Zhejiang Meida’s shares. The controlling shareholder of the listed company will change from Xia Zhisheng, Xia Ding, Xia Lan to Shenzhen Star Blueprint, and the actual controller of the listed company will shift from Xia Zhisheng, Xia Ding, Xia Lan, and Bao Yihong to Zhang Haizheng.”
Prior to this share transfer, Zhejiang Meida operated on a family control model. The announcement revealed that the founder of Zhejiang Meida, Xia Zhisheng, his son Xia Ding, and his daughter Xia Lan were acting in concert, collectively holding 52.41% of the company’s shares as the controlling shareholders of the listed company. Xia Zhisheng, Xia Ding, Xia Lan, and Xia Zhisheng’s spouse Bao Yihong together formed the original actual controller system of the company.
Following the announcement, the stock price of Zhejiang Meida opened limit down at 6.44 yuan per share, a decrease of 10.06%, resulting in a total market value of 4.2 billion yuan.
The founder of Zhejiang Meida, Xia Zhisheng, decided to sell the control rights of the company primarily due to the declining performance of the company over the years. According to a report by “Nanfang Dushi Bao” on July 21, from 2021 to 2025, Zhejiang Meida’s revenue dropped from 2.16 billion yuan to less than 600 million yuan, a decline of over 70% in four years; net profit plummeted from 665 million yuan to just 11.54 million yuan, a decline of 98%. In the first quarter of 2026, the company achieved revenue of 73.197 million yuan, down 25.59% year-on-year; net profit attributable to the parent company was 2.9098 million yuan, a year-on-year drop of 62.66%. On July 13, the company issued a performance forecast for the first half of 2026, expecting a net loss of 10 to 14 million yuan, a year-on-year decline of 181% to 214%, marking the first interim loss. This indicates that the company’s operations in 2026 have not shown improvement.
Moreover, as a family business, Zhejiang Meida faced the dilemma of no successor. According to a report by “The Paper,” the founder of Zhejiang Meida, Xia Zhisheng, is 85 years old. In July 2017, Xia Zhisheng resigned as chairman and legal representative due to health reasons. His son, Xia Ding, then took over as the chairman of the third board of directors. At the end of 2019, Xia Ding stepped down from the positions of chairman and general manager with the change of the board, and Xia Lan took over. Four months after taking office, Xia Lan resigned from the position of general manager, and Xia Zhisheng reassumed the role. In June 2026, during the board change at the company, six out of nine directors were external members, with Xia Ding and Xia Lan exiting the board of directors. Xia Zhisheng retained only the honorary title of chairman, and the Xia family effectively completely withdrew from the daily operations of the company. Consequently, there were speculations in the market about the children having no intention to take over.
According to a report by “Nandu Wan Cai She,” Xia Zhisheng’s son and daughter are highly educated returnees: his son, Xia Ding, holds a Ph.D. in economics from Moscow State University, and his daughter, Xia Lan, has a master’s degree and previously worked at Shenyin Wanguo Securities, with an impressive resume.
Public records show that Zhejiang Meida Industrial Co., Ltd. was founded on December 29, 2001, as a pioneer in the Chinese integrated kitchen industry. The company went public on May 25, 2012, on the Shenzhen Stock Exchange, with its headquarters located in Haining City, Zhejiang Province. Its main business involves research, design, production, and sales of modern kitchen appliances with integrated kitchen products as the core. Founded by Xia Zhisheng, the company developed the world’s first integrated stove in 2003.