Yulong: Major Shareholder Shenxing Grants 100% Authorization for Continued New Business Transformation

(CNA) - Yulong, a precision parts machining manufacturer, recently saw a change in its chairman, which drew market attention. Yulong General Manager Tsai Ming-tung stated today that the management team has communicated with major shareholder Shenxing, and the major shareholder has granted 100% full authorization and maintains a positive supportive attitude. Yulong will continue to transform towards new businesses such as reducer gears for humanoid robots and liquid cooling for artificial intelligence (AI) servers.

Tsai Ming-tung indicated that Yulong's efforts in increasing equipment production capacity, planning capital expenditures for a US plant, expanding talent recruitment, upgrading technology, and obtaining patents will receive support from the major shareholder and the board of directors.

The recent change in Yulong's chairman caused market concern and significant stock price fluctuations. On June 29, Yulong issued a press release stating that operations were normal and that the core strategy remains a dual-axis layout focusing on AI server liquid cooling and smart robots. After the personnel matters were settled, Yulong held an investor conference in the afternoon, where Tsai Ming-tung provided an explanation.

Tsai Ming-tung mentioned that Shenxing, the major shareholder, was not present today, and many questions might not be answerable on their behalf. He pointed out that from a legal perspective, the major shareholder indeed has the right to initiate and exercise their rights. However, from a personal standpoint, he believes a more widely acceptable approach could have been taken to avoid recent controversies and impacts.

From the perspective of a professional manager, Tsai Ming-tung stated that the personnel plan announced on June 22 is a key focus, particularly regarding its significant impact on Yulong's transformation into new businesses, including reducer gears and the North American robotics market.

To clarify Yulong's future management operations, Tsai Ming-tung emphasized that the management team needed to confirm whether Shenxing, the major shareholder, had granted 100% full authorization, "not 85%, 90%, or 99%." He admitted that he and the Yulong management team spent a considerable amount of time communicating with Shenxing.

Tsai Ming-tung announced that his presence at the investor conference today with Yulong's management executives represents the consensus reached between the major shareholder Shenxing and the Yulong management team regarding 100% authorization. It also signifies that the Yulong team will continue to transform towards new businesses such as reducer gears for humanoid robots and liquid cooling for AI servers.

Tsai Ming-tung stated that securing 100% authorization from the major shareholder for the Yulong management team is essential for Yulong to achieve its set operational goals. This also concerns the rights and interests of Yulong's partners, investors, domestic and international clients, academia, and collaborating manufacturers. He noted that Shenxing's attitude in supporting the Yulong management team has always been positive.

On June 22, Yulong announced that its former chairman, Liu Chun-chang, resigned from his position as chairman, effective the same day. On that day, Yulong's board of directors convened and elected Lin Chih-cheng, a Yulong director and chairman of the major home sewing machine manufacturer Shenxing, as the new chairman of Yulong.

According to Yulong's annual report, as of the end of March this year, Shenxing held a 26.06% stake in Yulong, making it Yulong's largest shareholder. (Editor: Chang Chun-mao) 1150702)