A single personal marital dispute judgment has pushed a listed company with a market value of billions of yuan to a critical juncture.

On the evening of October 10, Digital China Group Co., Ltd. (hereinafter referred to as 'Digital China') issued an announcement disclosing the progress of the divorce case involving its controlling shareholder and actual controller, Guo Wei. The announcement revealed that the Beijing Haidian District People's Court had made a first-instance judgment on September 30, granting Guo Wei's divorce from his wife, Guo Zhengli. Regarding the property division, which has drawn significant market attention, the court ruled that the case would continue to be heard before a further judgment is made.

The reason this divorce case has attracted capital market attention stems from the enormous equity value involved. In January 2025, Digital China had already announced that due to this marital dispute, approximately 77.39 million shares held by Guo Wei had been judicially frozen, accounting for 50% of his total personal shareholdings and 11.56% of the company's total share capital. Based on the closing price of Digital China's stock at 43.86 yuan per share on October 10, the market value of these frozen shares is approximately 3.4 billion yuan.

With the division of 3.4 billion yuan worth of shares still unresolved, significant uncertainties have been added to the control structure of Digital China, a veteran IT giant. These uncertainties come at a critical moment when the company is fully committed to AI and undergoing strategic transformation.

In the first half of 2025, the company achieved operating revenue of 71.59 billion yuan, a year-on-year increase of 14.4%. However, its net profit attributable to shareholders decreased by 16.29% year-on-year to 426 million yuan. This financial performance of 'increased revenue but decreased profit' directly reflects the company's full embrace of artificial intelligence and increased investment in research, development, and marketing. For a traditional IT enterprise undergoing its most crucial strategic transformation, suddenly facing significant uncertainties over core control rights is undoubtedly a severe test.

A Pending Equity Division

With the first-instance judgment delivered, uncertainties have not only persisted but have become even more nuanced.

On January 27, 2025, Digital China announced that its controlling shareholder and actual controller, Guo Wei, had 77.3889 million shares judicially frozen by the Beijing Haidian District People's Court due to a 'marital and family dispute case.' On October 10, the announcement further clarified that the court had already made a first-instance judgment on the divorce but had separated the core issue of property division for a separate hearing.

Before the final equity division plan is unveiled, the core issue of the company's actual control rights will remain unresolved. Such uncertainties pose a potential obstacle to significant strategic decisions for any listed company.

「Kuaima Financial Media」found that as of the first half of 2025, Guo Wei directly held 155 million shares of Digital China, accounting for 21.49% of the total share capital, making him the company's sole controlling shareholder and actual controller. The company's second-largest shareholder is China New Era Co., Ltd., with a 4.65% stake, while other shareholders have relatively dispersed holdings. This equity structure grants Guo Wei absolute authority over the company's strategy and operations.

Once the frozen shares are evenly divided, this balance of power will be completely disrupted. If Guo Zhengli obtains half of Guo Wei's shares (approximately 77.39 million shares), Guo Wei's shareholding ratio will dilute from 21.49% to approximately 10.75%. At the same time, Guo Zhengli will become a new major shareholder with approximately 10.75% of the shares, creating a situation where both parties will be on equal footing.

The transformation of the equity structure will fundamentally impact Digital China's governance. In the past, Guo Wei, relying on his controlling position, could ensure the efficient implementation of the company's strategic decisions. However, under the new equity structure, any significant decision may require the unanimous consent of both major shareholders. If the two parties disagree on critical issues such as the company's development direction, capital investment, and profit distribution, Digital China's decision-making mechanism will reach a stalemate. In the rapidly changing AI sector, any hesitation or internal conflict in strategy could cause the company to miss development opportunities.

While the personal dispute unfolds, Digital China's legal representative has also changed. On June 28, 2025, Digital China completed its industrial and commercial registration changes, with the company's legal representative changing from Chairman Guo Wei to Co-Chairman and Chief Executive Officer Wang Bingfeng. This change occurred during the divorce case proceedings, and the timing of the choice is intriguing.

"High-Stakes Gamble on AI"

Guo Wei's divorce case has become particularly thorny at this moment because it coincides with Digital China's critical juncture in fully transitioning to AI. This high-investment, long-term strategic transformation places extremely high demands on the stability and strategic resolve of the leadership. Uncertainties over control rights pose the greatest threat.

In recent years, Digital China has bet its future on the 'AI-driven integration of data and cloud' strategy. The company is committed to building full-stack capabilities ranging from AI computing infrastructure and AI software platforms to AI application solutions, aiming to secure a position in the AI era.

Currently, this strategic transformation has begun to show initial results and has become the core engine driving the company's performance growth. In the first half of 2025, Digital China's AI-related business achieved operating revenue of 13.332 billion yuan, a significant year-on-year increase of 56%. Behind this high growth is substantial investment, with the company's research and development expenses increasing by 11% during the same period. The high costs of research, development, and market expansion have eroded the company's current profits, leading to a situation of 'increased revenue but decreased profit.'

This profit decline does not indicate deteriorating operations but rather resembles the growing pains of a strategic transformation. Data shows that the gross profit contribution from high-value strategic businesses such as data cloud services and software and proprietary brands increased by 6.4 percentage points year-on-year to 26.2% in the first half of 2025. This indicates that the company is successfully replacing revenue from low-margin traditional distribution businesses with strategic revenue that may generate higher profits in the future. The current decline in net profit is the 'price' paid for achieving higher-quality growth in the future.

The AI transformation requires a high degree of consensus on strategy among management and core shareholders, who must be willing to endure years or even longer periods of investment and even losses. A potential change in control rights means the emergence of a new major shareholder with significant power who may be more concerned with short-term net profit figures on financial reports rather than long-term strategic layout (Chinese term left as is for specificity). If the new shareholder questions the efficiency of current investments and demands cost-cutting or strategic adjustments, Digital China's AI transformation journey could very well be derailed.

The new major shareholder may use the excessive 'burn rate' of the AI business and lower-than-expected profitability as reasons to challenge the existing management, using this as leverage to contend for (Chinese term left as is for specificity) board seats and even company control rights. Even if direct conflicts do not occur, the mere complication and reduction in efficiency of the decision-making process could impact the future development of the AI business.

In the AI field, whether it involves procurement of computing power, technological cooperation, or the recruitment of high-end talent, quick decision-making and decisive investment are essential. If the company's significant investment decisions require prolonged deliberation between two major shareholders who may have differing opinions, valuable time windows will quickly close.

It is essential to recognize that Digital China's AI transformation is taking place in an extremely competitive market. Whether it is AI servers, cloud services, or industry solutions, domestic and foreign tech giants and emerging AI startups are all investing at all costs (Chinese term left as is for specificity), competing for market share, technology, and talent.

In such a 'fast fish eat slow fish' track (Chinese term left as is for specificity), any internal hesitation and consumption are equivalent to handing opportunities to competitors on a silver platter. While Digital China takes a long time to clarify its internal control structure, its competitors are fully committed to launching new products, acquiring new customers, and building technological moats. Any period of stagnation could place Digital China's AI transformation at a disadvantage in future competitive landscapes.