Zhejiang Dayuan Pump Industry Founder Han Yuan Passes Away Again, Shareholding Structure Changes, What Will Be the Future of the Company?

Zhejiang Wenling-listed company Dayuan Pump Industry recently announced that one of its actual controllers, Han Yuanzai, has passed away due to illness. According to the announcement, Han Yuanzai held 21.0896 million shares of the company, accounting for 11.31% of the total share capital. His share disposal will be conducted in accordance with relevant laws and regulations, which may lead to changes in the company’s actual control structure. The company stated that it will disclose subsequent developments in a timely manner, and current production and operations remain normal.

Public information shows that Han Yuanzai was born in June 1955 and was one of the core members of Dayuan Pump Industry’s founding team. When Sanyuan Machine Tool Factory in Wenling County was established in 1993, he participated as an investor. This enterprise later developed into Dayuan Pump Industry and was listed on the Shanghai Stock Exchange in July 2017. Han Yuanzai served as the chairman of the company’s supervisory board and, together with Han Yuanping, Han Yuanfu, Wang Guoliang, and Xu Weijian, formed a team of five concerted actors, creating a unique equity balance structure—each holding the same number of shares, with an equal stake of 11.31%.

Family relationship networks show that Han Yuanzai is a brother to Han Yuanping and Han Yuanfu. Wang Guoliang is his brother-in-law, and Xu Weijian is a cousin. These close family ties form the cornerstone of the company’s governance. In the early days of listing, Han Yuanfu served as chairman, Han Yuanping as director, and Han Yuanzai as chairman of the supervisory board. Recently, in management adjustments, Han Yuanping took over as chairman, while Han Yuanfu and Han Yuanzai both exited the senior management team.

Recent changes in the company’s equity structure have already begun to emerge. An announcement on February 10 indicated that Han Yuanzai and Xu Weijian planned to reduce their holdings by no more than 9.405 million shares (5.05% of the total share capital) through agreement transfers within three months. Based on the stock price at that time, this stake was valued at approximately 421 million yuan. Three days later, Han Yuanfu also announced a plan to reduce holdings by no more than 5.595 million shares (3% of the total share capital) through centralized bidding and block trades within three months, citing personal funding needs. The disposal of shares triggered by Han Yuanzai’s passing will introduce greater uncertainty into the previously balanced ownership structure.

On the business front, Dayuan Pump Industry is undergoing a strategic transformation. The company is shifting from traditional civil and agricultural pump markets to high-end industrial pump markets such as liquid-cooled servers, new energy vehicles, energy storage, and hydrogen energy. This transformation has shown remarkable results: in 2024, the company’s stock price has increased by 129% cumulatively, forming a business layout covering data centers, commercial aerospace, nuclear power, and other hot concepts. Financial data shows that the company’s net profit has remained stable between 100 million and 300 million yuan in recent years, with 140 million yuan net profit achieved in the first three quarters of 2024. The company’s annual report is scheduled to be disclosed on April 24.

Han Yuanzai’s entrepreneurial journey is quite legendary. According to the prospectus, this entrepreneur with only elementary school education, along with family members, cultivated the enterprise into a listed company. His 11.31% stake is currently valued at over 900 million yuan. As the share disposal process begins, this family-run enterprise’s governance structure will face significant tests, and the market is closely watching for potential chain reactions triggered by subsequent equity changes.