On the afternoon of October 26, *ST Rong控 (Rongfeng Holding Group Co., Ltd., 000668.SZ) issued a notice regarding the inability to contact its independent director, Liu Changkun. The announcement indicated that after sending out the notification for the 14th meeting of the 11th Board of Directors on October 14, the Secretary's office has attempted to reach Liu through various means, including phone and WeChat, but has been unsuccessful. As of the date of the announcement, the specific reason for his inability to be contacted remains unclear.
A senior executive of *ST Rong控 mentioned in an October 26 statement that, as the third-quarter report requires the signature of directors for confirmation, the inability to contact Liu is problematic. He noted that while the situation remains unclear, Liu is likely still in China.
Liu Changkun, aged 67, has served as an independent director of *ST Rong控 since April 23, 2020, with his current term set to conclude on December 20, 2026. In addition to his role as an independent director, he is also a member of the company’s Strategic Decision-Making Committee and the Compensation and Assessment Committee.
Notably, the company’s announcement stated that the board would closely monitor the situation and would consider measures—including the potential reappointment of an independent director—based on Liu's ability to fulfill his duties to ensure proper board operations.
All Communication Channels Cut Off: Board Meeting Approaches Efforts to Reach Liu Go Unanswered According to the announcement released by *ST Rong控 on the evening of October 26, after issuing notification for the 14th meeting of the 11th Board of Directors on October 14, attempts to contact independent director Liu Changkun by phone and WeChat have all been unsuccessful. The company has stated that they cannot determine the reason for not being able to reach Liu.
Public information indicates that Liu Changkun was born in June 1958, is 67 years old, holds a master's degree, has a senior economist title, and has obtained master's degrees in business administration from the University of Houston and Northwestern University in the United States.
Before joining the board of *ST Rong控, Liu held roles, including Chairman of the Supervisory Board at Yongtai Group Co., Ltd. He was appointed as an independent director of *ST Rong控 on April 23, 2020, with his term scheduled to end on December 20, 2026. According to the 2024 annual report of *ST Rong控, Liu received a total pre-tax compensation of 120,000 yuan from the company.
The report indicated that Liu is an independent director on the 11th Board of Directors and is also a member of the Strategic Decision-Making Committee and the Compensation and Assessment Committee. The company made it clear that Liu does not hold any other positions besides these and is not an independent director with an accounting background, nor involved in the company’s daily operational management.
After the announcement on October 26, a senior executive from *ST Rong控 conveyed that due to the necessity for directors to sign off on the third-quarter report, contact with Liu has been persistent issue. Currently, the circumstances remain unclear, but he is likely still in China.
Regarding the potential implications of Liu's disappearance, *ST Rong控 stated in the announcement that the board currently has seven members. In the absence of contact with Liu, the remaining six directors (including two independent directors) continue to perform their duties normally. This number does not fall below the minimum membership requirements stated in the PRC Company Law or the company’s articles of association.
Thus, *ST Rong控 believes that, at this stage, this situation will not negatively impact the normal operations of the board or the company’s production activities. Nonetheless, the board has declared that it will closely monitor the subsequent developments. Depending on Liu’s ability to perform his duties, the company may consider taking measures, including but not limited to the reappointment of an independent director, to ensure proper board functioning.
Transformational Pain in Catching Up? Revenue Grew Nearly 40% in First Three Quarters, Cash Flow Remains Tight As the incident concerning independent director Liu Changkun unfolds, *ST Rong控 finds itself amidst a critical phase of actively seeking business transformation and improving its operational performance. The latest released third-quarter report for 2025 shows some positive changes in operational results, yet overall challenges are still significant.
According to the third-quarter report, *ST Rong控 achieved revenue of 67.9071 million yuan in the third quarter of 2025, reflecting a substantial increase of 249.21% compared to the same period last year. From the beginning of the year to the end of the reporting period (January to September), the company’s cumulative revenue reached approximately 185 million yuan, marking an impressive year-on-year increase of 377.55%.
The marked revenue growth is likely linked to the expansion of new business ventures in recent years. As per the 2024 annual report, *ST Rong控 added e-commerce live broadcasting and cross-border logistics to its core business of real estate development and management in 2024.
In 2024, the e-commerce live broadcasting and cross-border logistics segments contributed approximately 12.05 million yuan and 39 million yuan in revenue, respectively, accounting for over 38% of total revenue for the year, thus reducing reliance on traditional real estate business.
However, the significant revenue increase in the first three quarters has not been enough to completely reverse *ST Rong控's loss situation. In the third quarter of 2025, the company reported a net loss attributable to shareholders of -2.3873 million yuan, a substantial improvement of 85.75% compared to the previous year, yet still not profitable. From the beginning of the year to the end of the reporting period (January to September), the cumulative net loss attributable to shareholders reached 27.404 million yuan, which was a 20.17% decrease compared to the previous year's losses.
The tight cash flow situation of *ST Rong控 is evident in its balance sheet. At the beginning of 2025, the cash flow was reported at 53.7963 million yuan; by June 30, 2025, it still stood at 57.2927 million yuan. However, as of September 30, 2025, the cash balance had dwindled to only 9.9413 million yuan.
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