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Control battle at Tellgen: Liang Xilin's grandson takes over two shareholder partnerships from founder Fang Yongsheng
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A control dispute is unfolding at Chinese diagnostics firm Shuo Shi Bio (硕世生物) after former partners ended their alliance. On September 22, 2026, the company announced that limited partners Taizhou Shuokang and Taizhou Shuoyuan changed their executive partner from actual controller Fang Yongsheng to Liang Kacheng, the grandson of former co-controller Liang Xilin. This followed the July 2026 termination of a long-standing unanimous action pact among Fang, Liang, and Wang Guoqiang, leaving Fang as sole actual controller with a reduced stake of 32.24%. Liang Xilin has filed a lawsuit seeking to dissolve the holding company, which could further change control. The company has posted losses for three consecutive years, with a net loss of 374 million yuan in 2023 and continued losses in 2025. In response, management took voluntary pay cuts in August 2025. The first half of 2026 showed a net profit of 19.56 million yuan, though core operations remained unprofitable. The lawsuit outcome remains uncertain, and the company warns of potential control changes if the holding company is dissolved.
Source report
September 23, 2025 — Tellgen Corporation (硕世生物) has disclosed a change in the executive partner of two shareholder entities, revealing an escalating control dispute among former allies.
Key Shareholder Changes
On September 22, Tellgen issued a simplified equity change report stating that Taizhou Shuokang Enterprise Management Consulting Partnership (Limited Partnership) ("Taizhou Shuokang") and Taizhou Shuoyuan Enterprise Management Consulting Partnership (Limited Partnership) ("Taizhou Shuoyuan") had completed industrial and commercial registration changes. The executive partner was changed from the company's actual controller, Fang Yongsheng, to Liang Kacheng.
Following the change, Fang Yongsheng no longer controls Taizhou Shuokang or Taizhou Shuoyuan. His total controlling stake in Tellgen decreased from 32.24% to 28.43%.
The company noted that Fang Yongsheng has objected to the change. If he successfully challenges the removal or change through litigation, Taizhou Shuokang and Taizhou Shuoyuan may revert to his control, and their voting rights would be recalculated under his control.
Background: The Split
Liang Kacheng is the grandson of Liang Xilin, according to previously disclosed information.
The dispute stems from the dissolution of a long-standing partnership. On July 29, 2025, Tellgen announced that former actual controllers Fang Yongsheng, Liang Xilin, and Wang Guoqiang had agreed to terminate their "Voting Rights Agreement" early, leaving Fang Yongsheng as the sole actual controller.
The three had originally signed the agreement on December 30, 2015, and renewed it in December 2024 — less than two years before its termination.
Legal Action Threatens Control
On the same day the agreement was terminated, Liang Xilin, as a limited partner of Tellgen's controlling shareholder Shaoxing Runkang Biomedical Equity Investment Partnership (Limited Partnership) ("Runkang Bio"), filed a lawsuit in the Shangyu District People's Court of Shaoxing, Zhejiang Province, seeking to dissolve Runkang Bio.
Liang Xilin argued that "the partnership purpose of Runkang Bio cannot be achieved, and the parties have failed to reach an agreement through communication."
Currently, Liang Xilin, Taizhou Shuoyue Equity Investment Partnership (Limited Partnership), and Fang Yongsheng hold 71.88%, 20.13%, and 7.99% stakes in Runkang Bio, respectively. Liang Xilin is the largest investor, while Fang Yongsheng serves as the executive partner.
Tellgen warned that the case has not yet been heard and the outcome is highly uncertain. If the court orders the dissolution of Runkang Bio, Fang Yongsheng would no longer serve as its executive partner, and the company's controlling shareholder and actual controller could change.
Financial Performance Under Pressure
Tellgen, which focuses on in-vitro diagnostic products, experienced a boom during the COVID-19 pandemic:
- 2021: Revenue reached RMB 2.839 billion (up 63.19% YoY); net profit attributable to shareholders was RMB 1.193 billion (up 45.59% YoY). The company announced a generous dividend of RMB 100 per 10 shares, totaling RMB 586 million.
- 2022: Revenue rose to RMB 5.535 billion, with net profit of RMB 1.828 billion. However, the company chose not to distribute dividends, citing concerns over industry overcapacity, declining demand, and intensifying competition as the pandemic receded.
- 2023: The company posted a net loss of RMB 374 million.
- 2024: Cost-cutting measures, intensified accounts receivable collection, and optimized inventory management helped reduce losses.
Despite these efforts, the company remained unprofitable in 2025.
Executive Pay Cuts
In August 2025, facing continued pressure, several directors, supervisors, and all senior executives voluntarily took pay cuts:
- Honorary Chairman Fang Yongsheng and Chairman/General Manager Wang Guoqiang: 50% salary reduction
- Director/Deputy General Manager Liu Zhonghua, Director/Deputy General Manager/Board Secretary Hu Yuanyuan, and Deputy General Manager Zhou Guohui: 40% salary reduction
First Half 2026 Results
In the first half of 2026, Tellgen reported:
- Revenue: RMB 147 million (down 16.03% YoY)
- Net profit attributable to shareholders: RMB 19.56 million (up 390.02% YoY)
- Non-recurring items excluded net loss: RMB 19.17 million (narrowed from the prior year)
The company attributed the improvement to refined management, cost-reduction initiatives, and reduced impairment losses from better accounts receivable and inventory management.
Source: The Beijing News
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东方财富网-A股公司Eastern
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