Analysis of Professional Manager Resignation and Corporate Governance Changes at Zhongshun Jierou (002511.SZ)

Based on the collected information, I conduct an in-depth analysis of the professional manager’s resignation and changes in corporate governance structure at Zhongshun Jierou:

Liu Peng, a post-80s professional manager selected by Deng Yingzhong, founder of Zhongshun Jierou (002511.SZ), resigned from the CEO position on December 11, 2025 and the Chairman position on January 9, 2026 within one month, triggering a re-examination of the company’s corporate governance transformation path by the market [1][2][3].

After Zhongshun Jierou went public in 2010, founder Deng Yingzhong began to plan a long-term inheritance mechanism, including conducting a “death drill” to simulate the scenario of the founder’s passing, and gradually implementing a professional manager system. April 2021 became a key watershed for the company’s governance transformation:

• Founder Deng Yingzhong resigned from the Chairman position
• His son Deng Guanbiao stepped down from the General Manager position
• Liu Peng, who has a financial background, took over the authority of the Chairman as a professional manager

In a media interview in January 2024, Deng Yingzhong stated that the company has been committed to weakening the family management style and focusing on building a modern enterprise system since its listing. When selecting Liu Peng as his successor, he emphasized that “the capable shall be in charge, and only talent and virtue are valued”, and the two were highly aligned in their concepts, like ‘soul father and son’ [1][2].

During Liu Peng’s nearly five-year tenure at the company, its performance remained under pressure:

Year	Operating Revenue (CNY 100 million)	Net Profit Attributable to Shareholders (CNY 100 million)	Year-on-Year Change
2020	78.24	9.06	-
2021	91.50	5.81	-35.87%
2022	85.70	3.50	-39.76%
2023	98.01	3.33	-4.86%
2024	81.51	0.77	-76.80%

In 2024, operating revenue decreased by 16.84% year-on-year, and net profit attributable to shareholders plummeted by 76.80% year-on-year. The company stated that this was mainly affected by intensified industry competition [1][2].

1. Resignation of Liu Peng
   : Due to personal career development planning, he resigned from the positions of Director, Chairman, Member of the Nomination Committee, Member of the Strategy and Sustainable Development Committee, and Legal Representative. After his resignation, he still holds other positions in the company [1][2]

2. By-election of Non-Independent Director
   : After review by the company’s Nomination Committee and resolution of the Board of Directors, it was agreed to nominate Yang Yuzhao as a candidate for non-independent director of the 6th Board of Directors. According to his resume, the 63-year-old Yang Yuzhao:
   • Has served the company for a long time and followed founder Deng Yingzhong for many years
   • Has successively held positions including Sales Department Manager, General Manager of Tangshan Branch, General Manager of Hubei Zhongshun, and Assistant to the Chairman
   • Served as a director of the company from 2015 to 2017
   • Has continuously served as Assistant to the Chairman since 2009 [1][2]

3. Acting Chairman Responsibilities
   : More than half of the company’s directors jointly recommended Deputy Chairman Deng Guanbiao (son of Deng Yingzhong) to perform the responsibilities of the company’s Chairman on an interim basis. The term of acting responsibilities shall start from the date of recommendation and end on the date when the Board of Directors elects a new Chairman [2]

1. Performance Recovery Trend
   : In the first three quarters of 2025, as pulp prices fell, the company’s performance rebounded significantly: operating revenue reached CNY 6.478 billion, a year-on-year increase of 8.78%; net profit attributable to shareholders reached CNY 230 million, a year-on-year increase of 329.59% [2]

2. Institutional Foundation Remains
   : The company has established a relatively complete framework for the professional manager system. The fact that Liu Peng still remains in the company after his resignation indicates that both parties have maintained a relatively friendly separation attitude

3. Smooth Transition of the Decision-Making Layer
   : By recommending the Deputy Chairman to perform duties on an interim basis and by-electing directors, the normal operation of the company’s governance structure has been ensured

1. Signs of Founding Team’s Return
   : While Liu Peng resigned, Yang Yuzhao, a “veteran” who has long followed the founder, was elected to the Board of Directors, and Deng Guanbiao was appointed as acting Chairman. This arrangement has raised market doubts about whether the ‘De-Familyization’ reform has reversed

2. Increased Family Influence
   : From the composition of the Board of Directors, the influence of founding family members in the core decision-making layer has been strengthened, which creates tension with the previously clear ‘De-Familyization’ reform direction

3. Doubts About Reform Effectiveness
   : Nearly five years of professional manager governance failed to achieve the expected performance breakthrough; instead, net profit declined for four consecutive years, which objectively provided a certain “rationality” argument for the return of family influence

The corporate governance structure of Zhongshun Jierou

, but there has indeed been . The specific manifestations are:

1. Institutional Level
   : The framework of the professional manager system is still in operation, but there is a trend of core decision-making power returning to the founding team

2. Strategic Level
   : The firmness of the reform has been tested by performance pressure, and the influence of the founding family in the company’s major decisions has rebounded

3. Long-Term Impact
   : If a suitable professional manager successor cannot be found in the future, or if members of the Deng family substantially regain management control, it can be regarded as a regression of the governance structure; conversely, if a more complete institutional check and balance mechanism can be established, it can still be regarded as an adjustment in the reform process

For investors, they should focus on the following factors as important reference indicators for judging the quality of corporate governance: the selection process of the new Chairman, the independence of the Board of Directors, whether the professional manager system construction will continue, and whether the 2025 performance recovery can be sustained.

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[1] Sina Finance - “Professional Manager Resigns, Has the ‘De-Familyization’ of the Paper Industry Giant Changed?” (https://finance.sina.com.cn/roll/2026-01-11/doc-inhfxrmr7724879.shtml)

[2] DuChuang/Tencent News - “Two Resignations Within One Month! Professional Manager Liu Peng Steps Down as Chairman of Zhongshun Jierou” (https://news.qq.com/rain/a/20260110A0414F00)

[3] Economic Observer Network/Sina Finance - “Nearly Five Years of ‘De-Familyization’ at Paper Industry Giant Zhongshun Jierou, Post-80s ‘Successor’ Resigns from CEO and Chairman Positions Consecutively” (https://finance.sina.com.cn/stock/s/2026-01-11/doc-inhfxrmn8340594.shtml)