--- title: "Selling land and competing for rent can't save the main business? \"East Asia Lighting\" parent company China Electric is struggling to find a new positioning" type: "News" locale: "en" url: "https://longbridge.com/en/news/279103421.md" description: "China Electric Company (CE) is facing challenges in operational transformation and corporate governance, with ongoing internal disputes. Despite having the \"East Asia Lighting\" brand, it has been embroiled in lawsuits for nearly a decade, and the former chairman was sentenced for allegedly embezzling company funds. Additionally, the company is involved in legal disputes with logistics providers due to overdue warehouse rental payments. CE's revenue and profits continue to decline, raising concerns about its future" datetime: "2026-03-14T01:00:54.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/279103421.md) - [en](https://longbridge.com/en/news/279103421.md) - [zh-HK](https://longbridge.com/zh-HK/news/279103421.md) --- # Selling land and competing for rent can't save the main business? "East Asia Lighting" parent company China Electric is struggling to find a new positioning The Chinese electrical company that owns the "East Asia Lighting" brand is experiencing ongoing internal disputes. This long-established publicly listed company is facing dual challenges of operational transformation and corporate governance, reflecting the collective anxiety of some traditional manufacturing industries amid structural changes in the industry. According to reports from "Finance Magazine," the 71-year-old China Electric Company (CEC), despite owning the well-known Taiwanese lighting equipment brand "East Asia Lighting," has been embroiled in lawsuits for nearly a decade. First, the former and current chairpersons have fought for control of the company due to differing philosophies. Subsequently, major shareholder and former chairperson Zhou Lizhen was accused of misappropriating company funds by purchasing LED equipment and energy storage cabinets through offshore companies in 2010, resulting in a six-year prison sentence in the second trial, with the case still in the appeal stage. Zhou is also accused of insider trading for allegedly positioning herself before the company announced a capital reduction in 2020. Recently, the company has been taken to court by logistics providers for overdue warehouse rental payments. The issue arose because, starting in 2024, China Electric will store its electronic lighting products in a warehouse in Guishan, Taoyuan, managed by Jinlai Logistics. However, last year, CEC began to fall behind on warehouse rent while continuing to occupy storage space, prompting Jinlai Logistics to withhold CEC's goods on the grounds of "civil lien." CEC subsequently filed a complaint, arguing that the withheld goods are worth over 100 million yuan and that this could lead to auditors issuing a qualified opinion on CEC. In March of this year, the High Court ruled that CEC must pay a guarantee of 5.2 million yuan and quickly relocate the goods, but the damage compensation lawsuit between the two parties is still ongoing. CEC emphasized that both the chairman and general manager of the company are professional managers, and they have cooperated with regulatory authorities to submit various materials, asserting that the major shareholder is not involved in the company's operations and there are no concerns about infringing on shareholder rights; regarding commercial disputes, they will be handled according to legal judgments. ### Lawsuits and New Commercial Disputes Arise However, CEC has seen a decline in revenue and profits for several consecutive years. Public data shows that the general manager is acting in a proxy capacity, with only one full-time employee earning an annual salary of just 531,000 yuan, making the company's future challenging. In fact, China Electric once enjoyed great success. Interviews conducted by "Finance Magazine" revealed that its predecessor was formed from the integration of five major light bulb factories taken over by the Kuomintang upon arriving in Taiwan, operating as a party-run enterprise, and initially collaborated with Japan's Toshiba to produce lighting fixtures. In 1955, after introducing private investments from the Yan family in Keelung and the Fuhua Hotel, it went public and entered the manufacturing and sales of automotive lights and streetlights. Later, it partnered with Mitsubishi Technology to establish the "East Asia Lighting" brand, becoming a leader in Taiwan's lighting industry. It was listed on the stock exchange in 1990, with the third generation of the Yan family, Yan Ganlin, serving as the first chairman. Good times did not last long; with the rise of technology stocks around 2000, Zhou Zhiji and Zhou Lizhen, siblings from Fangyuan Electronics, gradually acquired over 60% of CEC's shares, and starting in 2007, Zhou Lizhen took over the chairmanship from Fuhua's third-generation Liao Boxi. ### Weak Operations Urgently Need New Positioning CEC's revenue peaked at 7.37 billion yuan in 2011 but was halved in less than two years, with net profits after tax plummeting from 500 million yuan annually. The operational situation has seen several years of earning one year and losing two years. Even with the disposal of land assets in 2017 and 2019, the decline could not be halted. After Zhou Lizhen resigned as chairperson in 2021, she was succeeded by Professor Hsiao Hung-yi from Soochow University Law School, who brought in Chairman Liu Jian-zhi from Jingcheng Bank International Leasing. Since 2023, Assistant Professor Liao Ming-hui from Soochow University has taken over According to an analysis by the Financial News biweekly, based on the historical financial reports of China Electric, the revenue for 2024 is estimated to be approximately 1.16 billion yuan, with a net profit after tax of 160 million yuan, and earnings per share (EPS) of 0.5 yuan. The revenue contribution comes from three main segments—LED lighting contributes 75% of revenue, traditional lighting accounts for about 13.3%, and rental income is about 11.7%. The proportion of traditional lighting continues to decline, while rental income shows significant growth. A spokesperson for China Electric, Huang Zhixian, stated that the company is still profitable and has not heard of any plans for capital reduction from investors. The core business will continue to seek investment opportunities; they will also be more proactive in activating approximately 2 billion yuan of investment properties on their books, and will not sell unless absolutely necessary. "These properties have not yet undergone asset revaluation. Additionally, to encourage employees, this year there will be more outstanding managers transitioning to full-time positions," he added. However, asset activation ultimately cannot completely replace the core business. How China Electric can find a new positioning remains a focus of external attention and reflects the common challenges faced by traditional manufacturing industries. 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