Yongsheng Rubber shareholding changes

Tyrepress has learned from people familiar with the matter that the shareholding of Shandong Yongsheng Rubber Group Co., Ltd. has changed recently. After the equity change, Tian Xiuzhen held 50 per cent and became the group’s major shareholder. Liu Zijun and Liu Huiqin each own 25 per cent of the shares.

Yongsheng Rubber has become a relatively large tyre manufacturer in Guangrao County, Dongying City, Shandong Province. In 2021, Yongsheng Rubber exported 1.8 million sets of all-steel radial truck tyres and 12 million sets of semi-steel radial tires, with sales exceeding 2.7 billion yuan (about £300 million).

In January 2020, Liu Zhanyi, founder of Yongsheng Rubber, passed away. His wife, Tian Xiuzhen, became the actual controller of Yongsheng Rubber and its three subsidiaries Shandong Santai Rubber Co., Ltd., Guangrao Yonglong Rubber Co., Ltd., and Dongying Changce Logistics Co., Ltd.

Three months later, Tian Xiuzhen authorised the operation and management authority of Yongsheng Rubber and its subsidiaries, such as sales, procurement, finance, personnel appointment and dismissal, to general manager Liu Zijun. According to the data, Liu Zijun and Liu Huiqin each held a 50 per cent stake in Yongsheng Rubber. A local from Guangrao County told Tyrepress that Liu Zhanyi and Tian Xiuzhen have four children together, and Liu Zijun and Liu Huiqin are the eldest son and eldest daughter, respectively.

In June 2021, Tian Xiuzhen took the tyre group to court because she was dissatisfied with the shareholding structure. She requested that 50 per cent of the company’s shares be registered back in her name on “family harmony” grounds. The court took evidence and ruled in favour of Tian Xiuzhen hence the recent shareholding changes. However, whether or not this will result in the expected shareholding harmony, remains to be seen.