Analysis of Shareholding Entrustment Cleanup for Fu'en Co., Ltd.

Based on public information, the shareholding entrustment cleanup situation of Fu’en Co., Ltd. (Hangzhou Fu’en Co., Ltd.) is as follows:

The predecessor of Fu’en Co., Ltd., Fu’en Co., Ltd. (the limited liability company), was established in 1997 with a registered capital of RMB 1 million, co-founded by the following shareholders[1]:

Shareholder	Shareholding Status	Entrustment Relationship
Wang Enwei	43.34%	Actual Controller
Yinan Village Economic Cooperative	41.67%	-
Han Youxian	-	Entrusted holding for Wang Enwei
Zhu Dahai	-	Entrusted holding for Wang Enwei
Wang Weicheng	-	Entrusted holding for Wang Enwei (younger brother of Wang Enwei)
Lu Jiatu	-	Entrusted holding for Wang Enwei

The above four natural person shareholders (Han Youxian, Zhu Dahai, Wang Weicheng, Lu Jiatu) are all villagers of Yinan Village, and all held shares on behalf of Wang Enwei[1][2].

1. 2000
   : Yinan Village Economic Cooperative transferred all its 41.67% equity to Wang Enwei, and the company gradually transformed from a collective joint venture to a private-dominated enterprise[1][2]

2. Termination of Entrustment
   : Wang Enwei aggregated the equity held by Han Youxian, Zhu Dahai, Wang Weicheng, and Lu Jiatu under his own name through measures such as terminating the entrustment, completely clearing up the historical shareholding entrustment relationships[1][2]

3. Completion of Equity Aggregation
   : After the shareholding entrustment cleanup, Wang Enwei became the controlling shareholder of the company

As of the signing date of the prospectus, Fu’en Co., Ltd. has completed the shareholding system reform and is preparing for listing, with the following equity structure[1][2][3]:

Shareholder/Shareholding Platform	Shareholding Ratio	Remarks
Paiya Holdings	36.57%	Controlling shareholder, wholly controlled by Wang Enwei, Wang Neili, and Wang Xuelin
Wang Neili	27.43%	Chairman, daughter of Wang Enwei
Wang Xuelin	8.57%	General Manager, spouse of Wang Neili
Wang Enwei	6.40%	Founder
Hangzhou Fenwei (Employee Shareholding Platform)	-	Controlled by Wang Xuelin
Hangzhou Fuyun (Employee Shareholding Platform)	-	Controlled by Wang Xuelin
Other Shareholders	Small amount	-

[1][2]

Based on public information, the shareholding entrustment cleanup of Fu’en Co., Ltd. has the following characteristics:

1. Reason for the formation of entrustment
   : The entrustment was formed based on the trust relationship between shareholders to simplify industrial and commercial registration procedures during the initial establishment.

2. Method of entrustment cleanup
   : The entrusted equity was transferred back to the actual investor Wang Enwei through equity transfer.

3. Cleanup result
   : All entrustment relationships have been completely terminated, with no disputes or potential disputes.

4. Regulatory compliance
   : The shareholding entrustment cleanup meets the IPO review requirements, and the CSRC has approved Fu’en Co., Ltd.'s IPO registration application on the Main Board of the Shenzhen Stock Exchange[4].

The shareholding entrustment cleanup of Fu’en Co., Ltd. is a typical case of standardizing historical shareholding entrustment for private enterprises. From its nature as a village-run joint venture at its establishment in 1997, through shareholding entrustment cleanup and equity aggregation in the 2000s, it ultimately achieved a clear equity structure, laying the foundation for the company’s IPO. Through the entrustment cleanup and subsequent equity operations, the Wang Enwei family ultimately achieved absolute control over the company (83.89% voting rights).

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[1] Investor Network - Fu’en Co., Ltd. IPO to Undergo Review, RMB 381 Million Dividend Stands Out (https://www.donews.com/article/detail/8189/94627.html)
[2] Sohu Finance - H&M, Fu’en Co., Ltd. Pursues IPO: Wang Enwei Family Received Over RMB 300 Million in Dividends in a Year (https://www.sohu.com/a/976997710_122014422)
[3] Sina Finance - Fu’en Co., Ltd. IPO to Undergo Review, RMB 381 Million Dividend Stands Out (https://finance.sina.com.cn/tech/roll/2025-12-24/doc-inhcwxmi9846516.shtml)
[4] China Securities Regulatory Commission (CSRC) - Approval Document Agreeing to the Registration of the Initial Public Offering of Shares by Hangzhou Fu’en Co., Ltd. (https://www.csrc.gov.cn/csrc/c106385/c7609466/content.shtml)