In the wind turbine gearbox sector, Nanjing High-Speed Gear Manufacturing Co., Ltd. (Nantong High-Speed Gears) stands as a premier entity. The company consistently maintains the leading global market share, with products exported to over 30 countries. It generates nearly 90% of the revenue for its parent company, China High-Speed Transmission Equipment Group Co., Ltd. (0658.HK), serving as a benchmark for dedicated industrial manufacturing.
However, this high-performing core asset has recently been disrupted by internal shareholder conflicts, resulting in the forced dismissal of its auditing firm. On one side, FULLSHARE Holdings (0607.HK), controlled by former Nanjing richest person Ji Changqun, is aggressively seizing control by removing the auditor and restructuring the board to secure firm grip over Nantong High-Speed Gears. On the other side, founder Hu Yueming and his son, who have devoted decades to the industrial business, have exited quietly, leaving behind a 14-month-long control battle.
Surprisingly, amid the shareholder disputes, delayed annual report, and impending stock suspension, Nantong High-Speed Gears' wind power business surged against the trend. Revenue for the first half of 2025 skyrocketed by 61.5% year-on-year, making it a standout performer during turbulent times.
The year-long shareholder struggle has left a messy situation, and Ji Changqun, now back in control, is expected to thoroughly overhaul the legacy of the Hu family. On March 3, 2026, China High-Speed Transmission announced that its board intends to forcibly dismiss the current auditor, Guowei CPA Limited, and appoint Baichun CPA Limited as the replacement. This move is orchestrated by majority shareholder FULLSHARE Holdings, which holds a 71.08% stake.
The auditor dismissal is essentially an extension of the shareholder conflict and represents Ji Changqun's final step to consolidate control. The issue traces back to September 2025, when the reappointment of the former auditor, Tianzhi Hong Kong, was not approved at a shareholders' meeting. The then Hu-led board directly appointed Guowei as the new auditor without shareholder approval, an emergency measure that later sparked disputes.
In January 2026, after Ji's faction restructured the board, the new board immediately targeted Guowei, claiming its appointment violated the company's charter and Hong Kong listing rules. The new management demanded Guowei's resignation, but the auditor refused to step down voluntarily, leading to a stalemate. As a result, China High-Speed Transmission could not complete its 2025 audit on time, forcing a stock suspension starting April 1, with the new auditor expected to finish by end-May.
The auditor conflict is the concluding act of a 14-month control battle between Ji Changqun's capital-oriented faction and the Hu family, who focused on industrial operations. The dispute centers on Nantong High-Speed Gears, a lucrative asset. In 2016, FULLSHARE acquired a 71.62% stake in China High-Speed Transmission for approximately HKD 4 billion, becoming the controlling shareholder. Initially, Ji intended to remain a passive investor, but conflicts arose due to differing priorities: Ji's group emphasized financial engineering, while the Hu family prioritized long-term industrial growth.
Tensions escalated in 2018 when FULLSHARE faced a debt crisis and repeatedly pledged China High-Speed Transmission shares for financing, angering the Hu family. The situation worsened in November 2024 with the exposure of a RMB 6.64 billion fund scandal involving unauthorized trade agreements. The Hu family accused Ji's faction of fund diversion, leading to legal actions and police investigations.
A turning point came in December 2025 when Nanjing police cleared Ji and FULLSHARE of criminal liability in the fund case. In January 2026, the board was overhauled, with eight directors, including chairman Hu Jichun, resigning. Ji's faction took control, marginalizing Hu Yueming and ending the power struggle.
Despite the governance chaos, Nantong High-Speed Gears' performance excelled. From 2022 to the first half of 2025, its wind gearbox revenue grew steadily, with market share rising from about 31% in 2022 to 38.6% in H1 2025, maintaining its global leadership for nine consecutive years. The company's robust technology, production capacity, and customer base enabled it to thrive independently of management disputes.
Now, with Ji in full control, the key question is whether he will prioritize sustainable industrial development or use Nantong High-Speed Gears as a financing tool, given FULLSHARE's historical debt pressures. Recent actions, such as dismissing the auditor and scaling back high-risk trade operations, suggest a shift toward focusing on core wind power business. If Ji commits to strengthening R&D and stabilizing the team, Nantong High-Speed Gears can continue its growth and reinforce its global leading position. However, if capital manipulation prevails, the company's long-term prospects may be jeopardized.
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