“Shanshan” was once China’s largest clothing brand. However, after the founder Zheng Yonggang passed away, disputes over inheritance emerged, followed by consecutive administrative fines and the freezing of equity.
Recently, companies under the “Shanshan Group,” including Shanshan Co., Ltd. (600884) and Yongshang Lithium Industry (603399), have both disclosed receiving “Advance Notice of Administrative Punishment” documents.
According to the “Advance Notice of Administrative Punishment” from the Liaoning Securities Regulatory Bureau, Shanshan Holdings holds more than 30% of voting shares issued by Yongshang Lithium Industry, but failed to fulfill the tender offer obligation when continuing acquisitions. The Liaoning Securities Regulatory Bureau plans to impose administrative penalties on Shanshan Holdings, admonishing correction, issuing a warning, and imposing a fine of 5 million yuan. Due to the death of the company’s responsible person Zheng Yonggang in February 2023, his administrative responsibility will not be pursued.
In recent days, the equity of several companies under the Shanshan Group has been judicially frozen. According to Tianyancha, from September 27 to 29, Shanshan Group Co., Ltd. added 5 pieces of information regarding frozen equity, with a total frozen amount of approximately 3.574 billion yuan.
The defendants of these 5 frozen equity information are all entities of Shanshan Group, including Shanghai Shanqu Industrial Co., Ltd., Shanghai Shanrong Industrial Co., Ltd., Zhongjing Sihai Industrial Co., Ltd., Shanshan Co., Ltd. (600884.SH), and Ningbo Shanshan Asset Management Co., Ltd. The freeze period is three years, and the executing courts are all the Meishan Intermediate People’s Court in Sichuan Province.
The website of the Shanshan Group shows that the group was founded by Zheng Yonggang in Ningbo, Zhejiang in 1989, and has been listed in the Fortune China 500 for consecutive years since 2002. In 1999, Shanshan Holdings moved its headquarters to Shanghai, expanding from a single clothing business to new energy technology, polarizers, and other fields. The company’s product line includes lithium-ion battery cathode materials, anode materials, electrolytes, etc., with multiple production companies located in Changsha, Ningxia, Shanghai, Ningbo, and other places.
The Shanshan Group consists of Shanshan Group, Shanshan Holdings, and Ningbo Shanshan Co., Ltd., with two controlling A-share companies being Yongshang Lithium Industry and Shanshan Co., Ltd.
The founder of the Shanshan Group, Zheng Yonggang, was once known as the “Clothing King.” In 2022, Zheng Yonggang ranked 144th on the list of China’s top 500 richest people with a net worth of 30.58 billion yuan. In February 2023, Zheng Yonggang passed away suddenly due to a heart attack at the age of 65.
Before his death, Zheng Yonggang served as the chairman of the Ningbo Chamber of Commerce in Shanghai, the chairman of the Shanghai New Hushang Business Association, the joint chairman of the Ningbo Chamber of Commerce, and the chairman of the Zhejiang Chamber of Commerce in Shanghai.
After Zheng Yonggang’s death, his eldest son, Zheng Ju, took over as chairman. Zheng Ju’s second wife, Zhou Ting, and Zheng Ju once contested for inheritance.
It was reported that Zhou Ting was a former television host who bore three children with Zheng Yonggang after their marriage. She kept a relatively low profile, and little was known about her and her children in the public eye.
A lawyer told the “Xin Wan Bao” that the identification of the new controlling person after the death of the actual controller is mainly based on inheritance relationships. If an heir did not leave a will before death, the spouse is the first priority heir and can acquire certain property rights. Ultimately, Zheng Ju gained the actual control of the Shanshan Group.
Public records show that Zheng Ju was born in 1991 and began serving in managerial positions at Shanshan Holdings in 2015, eventually becoming the CEO responsible for investments, healthcare, tourism, and actively participating in decision-making and management of the Shanshan Lithium battery business.
In February 2018, Zheng Ju became the legal representative and chairman of the Shanshan Group, later becoming a director and deputy general manager in September 2019, promoted to general manager in January 2020, and currently serving as chairman and CEO of Shanshan Holdings and a director of the Shanshan Group Co., Ltd.
Tianyancha data shows that currently, Zheng Ju serves as the legal representative in 59 companies and occupies management positions in 67 companies.
Since Zheng Ju took over as chairman, companies under the Shanshan Group have frequently had their equity frozen judicially.
Apart from the aforementioned 5 frozen equity information, in September, Yongshang Lithium Industry had 102 million shares frozen by the court due to overdue debts and defaults. This freeze lasts from September 18, 2024, until September 17, 2027.
On July 22, Shanshan Co., Ltd. disclosed partial equity freezes/marks and waiting freezes initiated by the court. The total shares marked by the court for the Shanshan Group recently were 147 million shares, 72.1222 million shares for Shanshan Holdings Co., Ltd., and 9.1543 million shares on waiting freeze.
According to the announcements made at the time, the freezing applicants involved the Shanghai Financial Court, Pudong New Area Court of Shanghai, and Lishui District Court of Nanjing City, Jiangsu Province. The total amount of debt involved in the cases and execution costs is 866 million yuan.