Zhejiang Meida plans to change control; the Xia family cashes out RMB 1.3 billion, with a new company established just 10 days ago taking over

On July 17, 2026, Zhejiang Meida (002677.SZ), dubbed 'China's first integrated cooker stock,' resumed trading with an immediate daily trading limit up, as its transaction for the transfer of actual control made new progress. Founding family members Xia Zhisheng and Xia Ding plan to sell a combined 29.99% stake in the company at RMB 6.656 per share to Shenzhen Xinglantu Industrial Investment Partnership (Limited Partnership)—a firm established just 10 days prior—for a total consideration of approximately RMB 1.29 billion. Upon completion of the deal, Zhang Haizheng, who has a cross-border e-commerce background, will become the company's new actual controller.

Source: Choice

This appears to be more than a simple shell asset handover—it resembles a reluctant transition after the exhaustion of traditional manufacturing dividends. On one side, the 85-year-old founding family is gradually stepping back amid mounting pressure from a nearly 50% earnings decline over the past five years and an expected first-half 2026 loss in the tens of millions. On the other side, Xingshang Innovation, a cross-border e-commerce player with over RMB 10 billion in annual revenue, is attempting to leverage its global distribution channels to rescue the integrated cooker industry leader from its deepening losses.

Zhejiang Meida was once deeply associated with being the 'pioneer of integrated cookers.' Led by Xia Zhisheng, the company listed on the SME Board in 2012, securing the title of 'China's first integrated cooker stock.' For two decades, the Xia family—comprising Xia Zhisheng, Xia Ding, Xia Lan, and Bao Yihong—acted as a concert party, collectively holding over 52.41% of shares and maintaining firm control over the company’s destiny. However, the founder’s legacy could neither withstand the crushing force of economic cycles nor prevent the freefall in performance.

Looking back at Zhejiang Meida's financial trajectory, 2021 marked a peak it can never return to.

That year, the company's revenue surged to RMB 2.164 billion, and net profit attributable to shareholders reached RMB 665 million, with year-over-year growth exceeding 22% for both metrics. However, starting in 2022, as the property sector declined and consumer demand weakened, the company’s growth came to an abrupt halt. In 2023, it barely managed a slight profit increase, but by 2024, its performance plunged off a cliff—revenue nearly halved to RMB 877 million, and net profit plummeted by 76.21% to just RMB 110 million. The most devastating collapse occurred in 2025, with annual revenue falling further to RMB 454 million—a 48.24% year-over-year decline—and shrinking by nearly 80% compared to the 2021 peak. Net profit dwindled to just RMB 11.54 million, down 89.55% year-over-year, while net profit excluding non-recurring gains and losses stood at only RMB 10.09 million, indicating that core business profitability had nearly dried up.

Entering 2026, the downward trend showed no signs of abating. First-quarter revenue came in at RMB 73.20 million (down 25.59% year-over-year), and net profit was RMB 2.91 million (down 62.66% year-over-year). Even more alarming is the company’s interim earnings forecast for the first half of 2026, which projects a net loss between RMB 100 million and RMB 140 million—the first half-year loss since its 2012 listing. The integrated cooker hood industry heavily relies on new home renovations (about 70% of sales come from new installations), and as the real estate boom faded, the entire sector’s retail sales have shrunk by 43.1% to RMB 9.8 billion. As the former industry leader, Zhejiang Meida has naturally borne the brunt of this downturn.

Source: Choice

In stark contrast to the company’s steadily deteriorating performance is the Xia family’s so-called 'cash management prowess.' Despite weak earnings from 2021 to 2025, Zhejiang Meida continued paying out substantial dividends each year. According to Choice data, the company distributed over RMB 1.5 billion in cash dividends during this period, with dividend payout ratios exceeding 100% in both 2023 and 2024—soaring to 175.48% in 2024 alone. In other words, the dividends paid out in 2023 and 2024 exceeded the company’s actual net profits for those years. While this may appear generous on the surface, a closer look reveals that the Xia family—who hold more than 50% of shares—benefited disproportionately. With their 52.41% stake, the Xia family reportedly received approximately RMB 794 million in dividends over these five years.

Source: Choice

For the Xia family, pocketing hundreds of millions in dividends during the industry’s downturn and then finding a buyer to exit with RMB 1.29 billion in cash before the market bottomed out may well represent the optimal outcome under current circumstances.

The buyer in this transaction is 'Shenzhen Xinglantu,' a name largely unfamiliar in capital markets. According to Tianyancha, this limited partnership was established on July 7, 2026—just ten days before the announcement—suggesting it was specifically created as a shell vehicle for this acquisition. Tracing its ownership structure reveals that Zhang Haizheng, the ultimate controller of Shenzhen Xinglantu, operates Xingshang Innovation Technology (Shenzhen) Co., Ltd. ('Xingshang Innovation'), which is far better known both within and beyond the industry.

Source: Tianyancha App

According to Xingshang Innovation’s official WeChat account, the company is a global cross-border e-commerce enterprise with several thousand employees, operating its own overseas warehouses in key markets including North America, Europe, and Japan. It sells product lines such as home furnishings, automotive parts, tools, baby care, and toys globally through major platforms like Amazon and Walmart, with multiple owned brands consistently ranking among the top ten in U.S. market share. The company was also selected as a 'Key Guangdong Provincial Cross-border E-commerce Enterprise' at the end of 2025.

Xingshang Innovation’s financial performance is even more impressive. The announcement disclosed its unaudited 2025 financials: revenue of RMB 14.17 billion and net profit of RMB 713 million, with cash and cash equivalents reaching RMB 1.356 billion. Clearly, if injected into the listed company, Xingshang Innovation’s earnings could easily support the上市公司’s performance. However, it is worth noting that both Shenzhen Xinglantu and Zhang Haizheng separately committed in the announcement not to inject any related assets into the listed company within 36 months of acquiring its shares.

Image source: Announcement

Interestingly, recent job postings from Xingshang Innovation across multiple channels include the statement: 'Planning to file for an IPO in the near future,' further muddying the waters around Zhang Haizheng’s true intentions behind taking control of the company.

Source: BOSS Zhipin job listing page

The only aspect with real potential lies in Zhejiang Meida leveraging Xingshang Innovation's years of cross-border e-commerce resources to expand into overseas markets. The listed company also stated that the acquirer will 'combine its own channel advantages in the cross-border e-commerce sector to empower the listed company’s market expansion and brand transformation.'

However, the reality is that exporting integrated cooktops overseas poses significant challenges. 'Integrated cooktops were originally developed to suit the Chinese high-heat stir-frying cooking style. Among overseas markets, Southeast Asia shows relatively higher acceptance. Although some integrated cooktop manufacturers have previously launched adapted products targeting Europe and North America, the domestic market remains the most critical,' an industry insider told the author. 'If companies aim to enter European and American markets, they will inevitably need to invest more heavily in R&D and marketing.'

For Zhang Haizheng, who entered the scene with a cross-border e-commerce playbook, whether he can pull Zhejiang Meida out of its losses will depend on whether he can help the company build a global network during the five-year lock-up period. (By Corporate Observer, Author: Cao Shengyuan, Editor: Deng Haotian)

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