Hailianxun (300277.SZ) said on March 5 that its chairman, chief executive, chief financial officer, board secretary and a securities affairs representative had all tendered written resignations — a rapid, high‑profile exodus that came as the company warned 2025 profit would slump by roughly 68–79 percent. The departures follow a recent round of board resignations in February, marking two waves of senior leadership turnover inside two months at the small‑cap listed firm.
The company said the chairman stepped down from the chair and several board committees to “stimulate board vitality” but will remain a director and a member of the remuneration and appraisal committee. The chief executive resigned from all positions for personal reasons. The CFO, board secretary and securities representative cited job relocations and will take on roles in the company’s Shenzhen operations after resigning their listed company duties. Earlier in February several non‑executive and independent directors also resigned for personal reasons.
The timing of the personnel shake‑up is significant. Hailianxun has reported shrinking revenues and earnings in recent years: revenue crept from RMB 213 million in 2023 to RMB 228 million in 2024, then fell to RMB 125 million in the first three quarters of 2025. Net profit attributable to shareholders has contracted from about RMB 10.8 million in 2023 to RMB 0.39 million in the first three quarters of 2025. The latest profit forecast for 2025 pegs full‑year net profit at just RMB 0.2–0.3 million.
The company’s management turmoil follows a transformational deal completed in February 2026: Hailianxun carried out a share‑swap merger to absorb Hangzhou Turbine Power Group, issuing 1.175 billion new A‑shares (all tradable) that added an estimated RMB 109.85 billion in market value at the agreed swap price. The transaction resolved a long‑standing B‑share legacy tied to Hangzhou Turbine and will formally change Hailianxun’s business profile from predominantly IT services to a dual focus on industrial turbine manufacturing and power informatization, with a proposed corporate name change and a new stock short name reflecting the turbine business.
Management has attributed the sharp profit decline to intensified market competition, higher period expenses related to the merger, and mark‑to‑market losses on financial assets. The merger itself brings integration challenges: large equity issuance dilutes existing shareholders, the operational pivot requires new capabilities and capital, and the sudden senior‑team resignations raise questions about consensus over strategy and execution.
For investors and market watchers the immediate implications are straightforward but material. Mass departures at the top during a major strategic shift are a classic governance red flag: they can signal internal disagreement about direction, doubts about the feasibility of the merger, or simply management overload as legacy and acquired businesses are combined. The fact that some departing executives are moving into roles within the acquirer's Shenzhen operation suggests partial internal redeployment rather than full exits, but it does not eliminate concerns about continuity and oversight at the listed entity.
Looking ahead, the market will watch replacement appointments, how the company clarifies its post‑merger strategy, and whether auditors or regulators flag any issues. The episode illustrates a broader tension in China’s A‑share market: rapid, large M&A and name‑change transactions can resolve historical shareholder structures but also concentrate execution risk and test the strength of listed‑company governance.