Corporate Governance Risk Assessment and Investor Guidance for Siwei Liekong (603508) After the Lifting of Executive Detention

According to public information, Zhao Jianzhou, former director and deputy general manager of Siwei Liekong, was placed under detention by the Binhai New Area Supervisory Committee of Tianjin on

, and the detention measure was officially lifted on [1][2][3]. The company’s announcement emphasized that during and after the detention period, the production and operation of the company and its subsidiary Henan Lanxin Technology Co., Ltd. were normal, and no negative impact was expected [1][2].

• November 3, 2025
  : Zhao Jianzhou was detained; the company removed him from the position of deputy general manager
• December 28, 2025
  : The company’s controlling shareholder planned a control rights change, and the stock was suspended
• December 31, 2025
  : Zhao Jianzhou’s detention measure was lifted
• January 5, 2026
  : The company announced the lifting of detention

Chart shows: Siwei Liekong’s stock price trend, trading volume changes, and key event annotations from October 2025 to January 2026. It can be seen that the stock price fell significantly after the detention event on November 3, and the control rights change news at the end of December attracted market attention.

:

• Shareholding ratio of
  11.41%
  , being the company’s
  third largest shareholder
  , even exceeding the actual controller Li Xin (11.06%)[2]
• Served as core management positions such as director and deputy general manager
• As an important shareholder, his detention exposed loopholes in the company’s
  executive compliance management

:
Before the detention event of Zhao Jianzhou was fully resolved, the company’s three actual controllers Li Xin, Guo Jie, and Wang Weiping (holding a total of 45.72% of shares) planned a control rights change on December 28, 2025[2]. increases the uncertainty of corporate governance:

• Short-term risk
  : Management turmoil may affect strategic continuity and operational stability
• Medium-to-long-term risk
  : Integration challenges between the new actual controller and the existing management team

:

• The announcement did not disclose the specific reasons for Zhao Jianzhou’s detention and the content of the investigation
• Detention by the supervisory committee usually involves job-related crimes, corruption, etc.
• Core Risk
  : Whether it involves company-level violations of laws and regulations

:

1. Personal Behavior
   : Only involves Zhao Jianzhou’s personal behavior outside the company, with minimal risk
2. Performance of Duties
   : Involves illegal acts during his tenure at the company; need to assess the company’s internal control responsibilities
3. Company Level
   : Involves overall compliance issues of the company, with maximum risk

Chart shows: Siwei Liekong performs excellently in financial health, but management stability is significantly lower than the industry average, and there is room for improvement in information disclosure quality and compliance risk control.

According to the latest financial data[0], Siwei Liekong shows

:

Financial Indicator	Value	Industry Comparison	Risk Assessment
Net Profit Margin	39.49%	Industry Excellent	High operational efficiency, strong profitability
ROE	13.77%	Good Level	Stable shareholder returns
Current Ratio	7.64	Extremely Excellent	Strong short-term solvency
Debt Risk	Low Risk	-	Sound financial structure
Beta Coefficient	0.41	Low Volatility	Low systemic risk

:

• The company’s
  financial fundamentals were not significantly affected by the detention event
• High profitability and strong cash flow provide a buffer for the company to resist governance risks
• Financial health score
  4.5/5
  , which is the company’s largest safety cushion

• Revenue
  : $264 million
• EPS
  : $0.24
• Strong 2024 Q4 performance: EPS $0.58, revenue $609 million[0]

: Financial data shows that during the detention period (November-December 2025), the company’s , consistent with the company’s announcement[1][2].

Time Period	Change	Characteristics
1 Month	-12.18%	Significant decline after the detention event
3 Months	-16.48%	Sustained pressure
1 Year	+27.32%	Still growing in the long term
YTD	0.00%	Flat at the beginning of the year

[0]:

• Current Price: 27.82 yuan
• Technical Trend:
  Sideways
• Trading Range: 27.43-28.47 yuan
• Beta: 0.41 (Low Volatility)
• 52-Week Range: 21.00-37.54 yuan

:

1. Short-term stock price has partially digested the negative impact of the detention event
2. Low Beta reflects limited market concerns about the company’s systemic risk
3. Uncertainty about control rights changes remains the main factor suppressing the stock price

• Average daily trading volume during the period: 8.75 million shares
• No abnormal increase in trading volume after the event
• Indicates
  relatively stable market sentiment
  with no panic selling

Risk Category	Risk Description	Severity	Duration
Governance Risk	Executive detention, control rights change	⚠️ Medium	Medium-term
Reputation Risk	Damage to company image	⚠️ Medium	Short-term
Compliance Risk	Possible regulatory investigation	⚠️ Medium-Low	To be determined
Operational Risk	Management stability	✓ Low	Resolved
Financial Risk	Company fundamentals	✓ Low	Long-term stable

:

1. Disclosure of Detention Reasons
   • Whether it involves company-level issues
   • Whether the regulatory authorities will conduct further investigations

2. Progress of Control Rights Changes
   • Background and intentions of the new actual controller
   • Impact on the company’s strategy

3. Improvement of Internal Control
   • Whether the company strengthens compliance management
   • Whether it establishes stricter executive supervision mechanisms

4. Quality of 2025 Annual Report
   • Whether the audit opinion is affected
   • Whether more governance details are disclosed

:

• ✅
  Hold
  : Strong company fundamentals, high financial health
• Focus on the strategic direction after the control rights change
• Wait for the resolution of governance uncertainty

:

• ⚠️
  Wait and See
  : Sideways technical trend with unclear direction
• Make decisions after the control rights matter is finalized
• Reference trading range: 27.43-28.47 yuan[0]

:

• 🔴
  Be Cautious
  : Governance uncertainty still exists
• Wait for more details in the annual report
• Monitor whether regulatory authorities take further actions

:

• P/E: 17.19x, significantly lower than the industry average (25-35x)[0]
• P/B: 2.76x, relatively low
• High net profit margin (39.49%) supports valuation

:

• Considering governance risks, an
  additional risk discount
  should be required
• It is recommended to re-evaluate after the control rights change is clear

Monitoring Indicator	Monitoring Frequency	Signal Significance
Company Announcements	Weekly	Progress of governance events
2025 Annual Report	April 2026	Audit opinion, internal control evaluation
Progress of Control Rights Changes	Weekly	Background of new actual controller
Regulatory Inquiries	Continuous	Whether it involves company-level issues
Stock Price Technical Breakthrough	Daily	Changes in market sentiment

:

• ✅
  Extremely stable
  financial fundamentals (net profit margin 39.49%, current ratio 7.64)
• ✅ Detention has been lifted; the most tense period is over
• ✅ No impact on company production and operations
• ✅ Valuation is at a relatively low level

:

• ⚠️ Detention reasons not disclosed;
  uncertainty remains
• ⚠️ Overlapping governance risks from control rights changes
• ⚠️ Impaired management stability
• ⚠️ Short-term stock price pressure

• Financial Risk: ✅
  Low
• Governance Risk: ⚠️
  Medium
• Market Risk: ✅
  Low
  (Beta 0.41)
• Compliance Risk: ⚠️
  Medium
  (to be observed)

:

• Continue to hold but remain vigilant
• The company’s strong financial fundamentals provide a safety margin
• Closely monitor the progress of control rights changes and the 2025 annual report

:

• Wait for a better entry opportunity
• It is recommended to consider building positions after the following situations are clear:
  1. Control rights change matter is finalized
  2. 2025 annual report is disclosed with normal audit opinion
  3. No further investigation by regulatory authorities
• Start tracking at the current price, but do not take heavy positions

:
The executive detention event of Siwei Liekong is . Combined with the company’s excellent financial performance, . However, in the short term, governance uncertainty may continue to suppress stock price performance. It is recommended that investors adopt a **