According to the inquiry, Xinchao Energy is classified as a state-owned enterprise, mainly because its controlling shareholder, Shanghai Energy, is a wholly-owned state-owned enterprise. In the ownership structure, Shanghai Energy holds most of the shares of Xinchao Energy and has decisive control.

This holding relationship makes trendy energy be influenced by state-owned factors in business decision-making and resource allocation. Although trendy energy has an independent legal person status in the market, it can operate independently and be responsible for its own profits and losses, but the state-owned background behind it makes trendy energy still need to follow the operating rules of state-owned enterprises.