news

bao fan photo source: visual china

author: an ran

editor: ye jinyan

produced by: deepnet·tencent news xiaoman studio

after the suspension of trading from 9:00 a.m. on april 3, 2023 (monday), the shares ofchina renaissance capital holdings(hereinafter referred to as huaxing capital) finally received the news of applying for resumption of trading.

on september 5, huaxing capital reissued four financial reports for 2022, the first half of 2023, 2023, and the first half of 2024. on september 6, huaxing capital issued an announcement on "satisfying the resumption of trading guidelines", stating that the company met the requirements of the hong kong stock exchange's resumption of trading guidelines and had applied to the hong kong stock exchange for the resumption of trading of the company's common shares from 9:00 a.m. on september 9, 2024.

according to the relevant regulations of the hong kong stock exchange, if a listed company is suspended for some reason, it usually has 18 months to resolve the issues that led to the suspension and apply for resumption of trading. if the application is approved, china renaissance capital, which has been suspended for about 17 months, will officially resume trading on the morning of september 9.

on september 6, china renaissance also updated the list of directors and their roles and functions. executive directors include xie yijing (chairman), lin jiachang (vice chairman), du yongbo, and wang lixing; non-executive directors include xu yanqing and lin ning; and independent non-executive directors include yao jue, ye junying, and zhao yue.

previously, the daily management and operation of china renaissance was handled by executive directors xie yijing and wang lixing. in addition to being appointed chairman of the board, xie yijing was also appointed ceo from acting ceo.

it should be pointed out that xu yanqing, a non-executive director, is married to bao fan, the controlling shareholder of huaxing capital. with the release of four financial reports and the confirmation of the new list of directors, huaxing capital is getting back on track.

huaxing capital is back on track, bao fan is still the major shareholder

since bao fan was reported to be “missing” in february last year, huaxing capital has begun a major personnel reshuffle.

according to tianyancha, on february 13, 2023, many key personnel of huaxing securities changed - the list of withdrawn personnel included chairman cong lin, director wang hui, director ma ning and supervisor dong jianjin, etc.; the list of new key personnel was added - yang chenyang, wang cheng, tao jian and xin xin were directors, zheng yi was a supervisor, yang liyang was the chief financial officer, etc.

it should be pointed out that former huaxing securities directors yang chenyang, wang cheng, tao jian, xin xin, as well as supervisor zheng yi and financial director yang liyang did not appear on the group's new list of directors.

in addition to the senior management, huaxing capital adjusted the company's personnel structure from 2023 to the first half of 2024. as of the end of the 2023 reporting period, huaxing capital had 566 employees, a year-on-year reduction of 25%. as of the end of the first half of 2024, the company had a total of 521 employees, a decrease of 8% compared to the end of 2023.

according to public information, as of december 24, 2023, the major shareholder of huaxing capital is cr partners limited, holding 38.376% of the shares. bao fan is the fourth largest shareholder, holding 4.627% of the shares.

it should be pointed out that on the surface, bao fan only holds less than 5% of huaxing capital's shares, but bao fan and his spouse xu yanqing are the actual controllers of the largest shareholder cr partners limited.

according to the announcement of huaxing capital, fbh partners holds 81.73% of the shares of cr partners, while bao fan holds 79% of the shares of fbh partners. his spouse xu yanqing holds 21% of the shares of fbh partners and grants mr. bao full voting proxy rights, so mr. bao actually controls all voting rights of fbh partners. through fbh partners, mr. bao is deemed to have the rights and interests of 218,127,332 shares held by cr partners.

regarding the appointment of xu yanqing as non-executive director, huaxing capital mentioned that the controlling shareholder cr partners limited requested the appointment of xu yanqing as a director.

according to information, xu yanqing, 54, is the founder, chairman and ceo of china aviation technology (tianjin) co., ltd. china aviation technology co., ltd. provides global business jet leasing business and is committed to serving high-end customers with internet solutions. in the past three years, xu yanqing has not served as a director of any other listed company.

judging from the equity structure alone, although bao fan resigned as executive director, chairman of the board and chief executive officer of huaxing capital on february 2, 2024, bao fan is still a major shareholder of huaxing capital.

lost 546 million in 18 months and paid 78.127 million restricted funds for bao fan

on september 5, huaxing capital reissued four financial reports for 2022, the first half of 2023, 2023, and the first half of 2024. the financial report shows that in the turbulent 2023 and the first half of 2024, huaxing capital lost a total of 546 million yuan.

in 2023, huaxing capital's total revenue was rmb 1 billion, and its total revenue and net investment income were approximately rmb 800 million, a year-on-year decrease of approximately 37% and 50% respectively, and its net loss attributable to the parent was rmb 472 million.

in the first half of 2024, huaxing capital's total revenue and net investment income totaled rmb 360 million, a year-on-year decrease of 39%. the group recorded a net loss attributable to owners of the company of rmb 74 million.

from the perspective of revenue structure, huaxing capital's business is mainly divided into three parts:

1. investment management business. the investment management team focuses on project exit and post-investment management, promoting mergers and acquisitions, old stock transactions and repurchases of investment projects; actively cooperate with the company in equity reform and declaration work for projects with good development momentum. in the first half of 2024, investment management business accounted for 37% of total revenue.

2. investment banking business. huaxing capital did not disclose the revenue share of this business in its financial report, but revealed that "due to the continued sluggish overseas ipo market for chinese concept stocks in the first half of 2024, the group's hong kong and us stock business is actively expanding atm additional issuance, de-spac listing, rto backdoor listing, private placement credit, convertible bonds and other diversified capital market products.

3. huaxing securities business. the announcement shows that in the first half of 2024, huaxing securities' total revenue and net investment income were rmb 103 million, accounting for 29% of the group's total revenue and net investment income.

regarding the impact of bao fan's "loss of contact" on the company, huaxing capital stated in a 2023 announcement that due to the bao fan incident, the fundraising for huaxing new economy rmb fund iv and usd fund iv ended ahead of schedule, and the investment period was terminated ahead of schedule, and no new project investment would be made.

it should be pointed out that due to the bao fan incident, huaxing capital paid a restricted amount of approximately rmb 78.127 million in the last quarter of 2023 (this figure was rmb 77.669 million as of december 31, 2023, the difference was caused by exchange rate fluctuations).

at present, huaxing capital’s adjustment has come to a temporary end, but it has not really dispelled market concerns.

"one of our invested companies is considering subsequent financial advisors. the founder is considering future listing plans, and huaxing capital is one of the institutions he focuses on. however, some investors have reminded the founder to pay attention to the stability of the project team. the team mobility of huaxing capital has been a bit high in recent years." an investment manager of an investment institution once told shenzhen net.