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huaxing capital, which has been suspended for more than 17 months, will resume trading tomorrow! xu yanqing, wife of controlling shareholder bao fan, stepped to the front of the stage, and just now, four senior executives jointly voiced their support.

on the evening of september 8, china renaissance capital issued an announcement that four executive directors, including chairman xie yijing, vice chairman lin jiachang, and two co-presidents wang lixing and du yongbo, have promised the company that they will not sell any of the company's equity interests from september 8, 2024 to march 7, 2025 (the "lock-up period commitment"). each executive director may terminate his lock-up period commitment by giving the company a written notice five calendar days in advance.

the four executive directors hold a combined equity interest of approximately 2.2% of the company. it is understood that the daily management and operation of huaxing capital was previously 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.

trading resumes tomorrow

bao fan's wife appointed as non-executive director

on the evening of september 6, china renaissance capital issued an announcement stating that the company has met the requirements of the resumption of trading guidelines. given that the board of directors believes that the company has met all the requirements of the resumption of trading guidelines, the company has 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.

in order to meet the requirements for resumption of trading, huaxing capital also reissued four financial reports in one go the day before. huaxing capital stated that the company has published the audited 2022 annual results, 2023 annual results and unaudited 2024 interim results on september 5, 2024 in accordance with the requirements of the listing rules. the group has no unpublished financial results. as of the announcement date, the company has not received any notice that it is under investigation, nor has it been involved in any litigation proceedings related to such events.

on the same evening, huaxing capital also released a personnel change announcement that set off a sensation in the capital circle. xu yanqing was appointed as a non-executive director, and sun qianhong resigned as a non-executive director. the above changes will take effect from september 6, 2024.

huaxing capital mentioned that cr partners limited, the controlling shareholder holding approximately 38.38%, requested the appointment of xu yanqing as a director. xu yanqing and the company's controlling shareholder bao fan are husband and wife.

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.

at the same time, bao fan and his spouse xu yanqing are the actual controllers of cr partners limited, the largest shareholder. therefore, xu yanqing is deemed to hold approximately 48.71% of the interests owned by bao fan.

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.

paid 78.127 million yuan of 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 from 2022 to the first half of 2024, huaxing capital lost a total of nearly 1 billion yuan.

data shows that in 2022, huaxing capital suffered a net loss of 430 million yuan; in 2023, huaxing capital suffered a net loss of 472 million yuan; in the first half of 2024, huaxing capital suffered a net loss of 74 million yuan, with a total loss of 976 million yuan in two and a half years.

in general, affected by the bao fan incident and the sluggish hong kong stock market, huaxing capital's investment banking and investment management businesses have declined sharply in the past two years. huaxing capital said that the market environment will continue to be sluggish in the first half of 2024. the number of ipos and financing amounts in the overseas chinese concept stock market have declined significantly, and transactions in the private equity financing advisory market have synchronized with the sluggish trend of the investment and financing market.

however, huaxing securities, a subsidiary of huaxing capital, has a relatively stable operation, with total revenue and net investment income of rmb 261 million in 2023, a year-on-year increase of 27%, accounting for 33% of the company's total revenue and net investment income. as of the end of december 2023, the cumulative number of registered users and account opening customers of huaxing securities duoduojin app have achieved rapid growth, up 64% and 82% respectively from the end of 2022, and the scale of customer assets has increased by about 4.7 times from the end of 2022.

what is particularly noteworthy is 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.

huaxing capital disclosed in its interim results announcement in 2024 that in the fourth quarter of 2023, based on the notice received, huaxing capital paid certain restricted amounts of approximately rmb 78.127 million (rmb 77.669 million as of december 31, 2023, and the change in the balance was purely due to changes in the current exchange rate used when converting the balance on the period/year settlement date) regarding the matter (referring to bao fan's cooperation with relevant departments in the investigation).

the announcement stated that due to the uncertainty of such events, the board of directors of china renaissance capital believes that it is too early to determine the possible results and their related impacts. therefore, no provisions were made for such events in the interim results of 2024. since china renaissance capital did not disclose the nature and substance of this contingent liability in detail, how to account for it has also aroused industry concern. the auditor previously issued a qualified opinion on china renaissance capital's 2023 financial report due to the inability to obtain sufficient audit evidence.