Group 1: Market Overview - The Hang Seng Index fell by 0.48%, down 117 points, closing at 24,357 points, while the Hang Seng Tech Index remained unchanged [1] - The early trading volume in the Hong Kong stock market reached HKD 142.1 billion [1] Group 2: Digital Currency and Stablecoins - Citic Securities highlighted the need to focus on opportunities related to stablecoins in response to the rising international dominance of digital dollars [1] - Stocks related to stablecoins saw significant gains, with Victory Securities (08540) doubling in price, China Everbright Holdings (00165) rising nearly 28%, and Yikang (09923) and Huaxing Capital Holdings (01911) both increasing by approximately 11% [1] Group 3: Sector Performance - Hong Kong Travel (00308) surged over 60% as the tourism industry continues to show positive trends, with the company increasing its tourism investments [3] - Defense and military stocks rose against the market trend, with China Shipbuilding Defense (00317) up 8.5% and AVIC (02357) increasing by 2.88%, as institutions expect a revaluation of defense assets [3] - China Molybdenum (03993) rose by 5.92% due to a new round of cobalt export bans from the Democratic Republic of Congo, which may exceed market expectations, providing strong support for cobalt prices [3] - Ocean Park (02255) increased by over 19% as Xiangyuan Holdings is set to become the new controlling shareholder, potentially leading to complementary advantages [3] Group 4: Company-Specific News - Sinopharm (01801) fell by 3.94% after announcing a 4.9% discount on a share placement, raising HKD 4.265 billion [4] - Kingkey Financial International (01468) dropped over 6% following a profit warning, expecting an annual net loss of no more than HKD 1.25 billion [5]

Core Viewpoint - The current merger and acquisition (M&A) market is experiencing significant growth, with a notable increase in demand for M&A professionals and a surge in M&A activities across various sectors, particularly in the technology and internet industries [2][3][4]. Group 1: M&A Market Trends - Many general partners (GPs) and investment banks have established new M&A departments, with a reported 300% increase in M&A manager positions over the past six months [2]. - Government-led M&A funds have proliferated, with an estimated total scale nearing 100 billion yuan by May of this year [2]. - The M&A team at Huaxing Capital has grown by over 50% in the past year, completing multiple strategic acquisitions totaling over 20 billion yuan [3][9]. Group 2: Huaxing Capital's M&A Strategy - Huaxing Capital has been a key player in major M&A transactions in China's internet sector since its establishment in 2005, participating in landmark deals that have reshaped the industry landscape [2][3]. - The company emphasizes that M&A is not merely a trend but a sustainable business model with significant social value, especially in the current economic climate where traditional growth drivers are diminishing [5][6]. - Huaxing's approach to M&A focuses on aligning external resources with the best growth opportunities, believing that M&A is essential for companies seeking above-average growth [5][12]. Group 3: Buyer and Seller Dynamics - There is a noticeable shift in the buyer landscape, with more startups engaging in M&A as a primary growth strategy, even before reaching unicorn status [6]. - The mindset of sellers has evolved, with many now viewing M&A as a viable exit strategy rather than a sign of failure, reflecting a more mature market [8][9]. - A significant 92% of investment institutions are willing to promote M&A exits for their portfolio companies, indicating a growing acceptance of M&A as a strategic option [9]. Group 4: Evaluation and Execution of M&A - Huaxing Capital employs a three-phase work system for M&A, focusing on idea generation, cooking (strategy development), and execution, which distinguishes it from traditional investment banks [17][18]. - The firm prioritizes understanding the strategic goals of buyers and ensuring alignment among stakeholders to avoid common pitfalls that lead to M&A failures [10][11]. - Huaxing's internal evaluation process emphasizes the importance of assessing both the buyer's capabilities and the strategic fit of potential acquisitions [11][12]. Group 5: Future Outlook - The M&A market is expected to continue its upward trajectory, with healthy deal flow anticipated in the coming period, although the unpredictability of M&A transactions remains a challenge [30]. - Huaxing Capital aims to maintain its leadership position in the M&A space by focusing on growth-oriented transactions and leveraging its unique operational model [18][20].

Core Viewpoint - Recent personnel changes and an announcement have brought Huaxing Capital back into the market spotlight after a period of silence following the disappearance of its founder, Bao Fan [1][2]. Personnel Changes - Deutsche Bank appointed Andrew Maynard as the head of equity for the Asia-Pacific region, previously serving as the global head of equity at Huaxing Capital. His extensive experience includes key roles at HSBC, Citic Securities, and Bank of America [3]. - Ye Shengming, former Secretary of the Board and Chief Risk Officer at Huaxing Securities, is set to join Yongxing Securities as Chief Risk Officer. Following his departure, the roles have been temporarily filled by other executives within Huaxing Securities [3][5]. Company Adjustments - Since the disappearance of Bao Fan in February 2023, Huaxing Capital has undergone several management adjustments, including the appointment of new board members and executives [4][6]. - In October 2023, Xu Yanqing, Bao Fan's wife, was appointed as the chairperson of Huaxing Capital, marking a significant leadership change as the company enters what is termed the "2.0 era" [6][7]. Investment Performance - Despite the leadership turmoil, Huaxing Capital continues to benefit from past investments in new economy sectors. Notably, Circle Internet Group, a company in which Huaxing's New Economy Fund invested in 2018, recently went public on the NYSE [7]. - Circle is recognized as one of the most widely used stablecoin networks globally, focusing on its USD Coin, which reflects Huaxing Capital's strategic foresight in the digital asset sector [7]. Future Outlook - Huaxing Capital remains optimistic about the development of blockchain technology and is actively exploring opportunities in the Web3.0 and cryptocurrency asset sectors, aiming to position itself as a leader in these innovative fields [7].

Major Events - JiuTai Rural Commercial Bank (06122) plans to sell 78.51% stake in HuanShan HuiMin Village Bank for 40.4 million yuan [1] - Vanke Enterprises (02202) intends to receive a loan of up to 3 billion yuan from its major shareholder, Shenzhen Metro Group [1] - China Gas Holdings (08246) signed a memorandum of understanding with the Lao Ministry of Industry and Commerce to explore cooperation in developing fuel and natural gas supply networks in Laos [1] - Miniso Group (09896) is conducting a preliminary assessment on the potential spin-off listing of its trendy toy business operated under the "TOP TOY" brand [1] - Baiyunshan Pharmaceutical (00874) subsidiary received approval from the National Medical Products Administration for the drug registration certificate of Tadalafil tablets (2.5mg, 5mg) [1] - Huaxing Capital Holdings (01911) portfolio company Circle successfully listed on the New York Stock Exchange, marking the first IPO milestone in the global stablecoin sector [1] - China National Nuclear Corporation (01763) plans to initiate its first irradiation station cooperation project in Peru [1] Operating Performance - Yuexiu Property (00123) reported a cumulative contract sales amount of approximately 50.7 billion yuan in the first five months, an increase of about 26.5% year-on-year [1] - China Overseas Land & Investment (00688) recorded a cumulative property sales amount of approximately 90.4 billion yuan in the first five months, a decrease of 11.1% year-on-year [1] - Shimao Group (00813) reported a cumulative contract sales total of 11.2 billion yuan in the first five months, a decrease of 18.71% year-on-year [1] - Zhongliang Holdings (02772) achieved a cumulative contract sales amount of approximately 5.37 billion yuan in the first five months, a decrease of 33.38% year-on-year [1] - GAC Group (02238) experienced a year-on-year decline in May's automobile production by 8.16% and a sales drop of 24.80% [1] - Poly Property Group (00119) achieved a contract sales amount of approximately 21.8 billion yuan in the first five months, an increase of 3.81% year-on-year [1] - New天绿色能源 (00956) completed a power generation volume of approximately 7.29 million megawatt-hours in the first five months, an increase of 10.86% year-on-year [1]

Group 1 - The stock of Huaxing Capital Holdings (01911.HK) experienced a decline after initially rising over 20% [1] - The fluctuation in stock price indicates volatility in investor sentiment towards the company [1] - The initial surge may have been driven by market speculation or positive news, but the subsequent drop suggests a correction [1] Group 2 - The performance of Huaxing Capital is reflective of broader trends in the Hong Kong stock market [1] - Investor reactions to the company's announcements or market conditions can significantly impact stock performance [1] - The situation highlights the importance of monitoring market dynamics and investor behavior in the financial sector [1]

Financial Performance - In 2024, Huaxing Capital achieved over 3 billion RMB in exits, significantly enhancing the DPI of various funds and providing substantial returns to LPs[16]. - In 2024, the total revenue and net investment income of the group reached RMB 840 million, a year-on-year increase of 5.2%[21]. - Total revenue for 2024 was RMB 777,104 thousand, a decrease of 27.7% from RMB 1,006,094 thousand in 2023[29]. - The total income and net investment gains or losses for 2024 were RMB 839,641 thousand, reflecting a 5.2% increase from RMB 797,944 thousand in 2023[34]. - The company reported a significant increase in stock underwriting revenue, which surged by 224.2% to RMB 42,348 thousand in 2024[37]. - The operating loss improved to RMB 41,640 thousand in 2024, a significant reduction of 78.9% compared to RMB 197,817 thousand in 2023[29]. - The adjusted net loss attributable to the company's owners for 2024 was RMB 300,837 thousand, down 49.3% from RMB 592,446 thousand in 2023[30]. - The net investment income for the year ended December 31, 2024, was RMB 62.5 million, a significant recovery from a net loss of RMB 208.2 million in 2023[68]. - The operating loss for the year ended December 31, 2024, was RMB 41.6 million, compared to an operating loss of RMB 197.8 million in 2023[72]. - The company reported a net asset value of RMB 7.05 billion as of December 31, 2024, slightly down from RMB 7.18 billion in 2023[155]. Investment Banking and Asset Management - The investment banking segment focused on artificial intelligence and merger transactions, solidifying its leading industry position and supporting numerous industry leaders[16]. - The investment banking business generated total revenue of RMB 220 million, reflecting a year-on-year growth of 16.8%[23]. - Investment banking revenue increased by 16.8% to RMB 224,453 thousand in 2024, compared to RMB 192,194 thousand in 2023[34]. - The investment management business contributed 38% to the total revenue, with total fund exit amounts reaching RMB 3.2 billion[22]. - The investment return ratio (DPI) for five out of eleven main funds exceeded 100%, with total unrealized carried interest amounting to RMB 2.1 billion[22]. - The investment management segment reported an operating profit of RMB 126.0 million for the year ended December 31, 2024, compared to an operating loss of RMB 12.3 million for the year ended December 31, 2023[54]. - The company’s investment management income primarily comes from management fees and carried interest from private equity funds[130]. Customer and Market Growth - The retail business saw a remarkable increase in new customer numbers and asset management scale, achieving over 200% and 100% growth, respectively, through the self-developed app "Duoduo Jin"[16]. - The registered user count for the Duoduo Jin app reached 390,000, a 95% increase from the end of 2023, with customer asset scale growing by 146%[24]. - Huaxing Capital has facilitated nearly 1.5 trillion RMB in transactions and participated in over 70% of the critical development stages of China's internet unicorns[18]. - The overall performance of the securities business stabilized and showed a trend of steady growth, particularly in the retail sector[16]. Operational Efficiency - The group reduced its workforce to 475 employees, a decrease of 16.1% year-on-year, leading to further reductions in non-labor costs[21]. - Total operating expenses decreased by 11.5% to RMB 881.3 million from RMB 995.8 million in 2023[70]. - The segment operating expenses for the securities division decreased by 1.7% to RMB 342.0 million from RMB 347.8 million in 2023[58]. - The company has taken measures to mitigate risks associated with contract arrangements by closely monitoring the regulatory environment in China[145]. Strategic Direction and Innovation - Huaxing Capital is committed to aligning with the national innovation-driven strategy and actively pursuing innovation amid complex global changes[14]. - The firm aims to fully leverage its entrepreneurial spirit in the "2.0 era" to become a leader and partner in frontier technologies[18]. - The group plans to deepen its layout in AGI and embodied intelligence fields while exploring Web3.0 and cryptocurrency assets[26]. - The company has established a carried interest distribution framework agreement to reward investment fund personnel, which is expected to retain at least 25% of distributable carried interest from 22 related investment funds[122]. Regulatory and Compliance Risks - The company faces significant risks including adverse impacts from the overall market and economic conditions in China and other jurisdictions where it operates[114]. - The company has established contractual arrangements that are subject to regulatory scrutiny under Chinese foreign investment laws, which may impact the feasibility of its current corporate structure and operations[135]. - There are significant uncertainties regarding the interpretation of regulations that could lead to severe penalties or loss of interests in certain business operations if deemed non-compliant by the Chinese government[135]. - The company relies on contractual arrangements with consolidated affiliated entities, which may not provide effective operational control or economic benefits compared to ownership of equity interests[137]. Corporate Governance - The board of directors consists of three executive directors, one non-executive director, and three independent non-executive directors[181]. - The compensation committee has been established to review the compensation policy and structure for all directors and senior management based on the group's operating performance and market practices[173]. - The auditor, Zhonghui Anda CPA Limited, has been appointed and will be reappointed at the upcoming annual general meeting for the year ending December 31, 2024[178]. - The company has no additional disclosure obligations under the listing rules[179].

Core Viewpoint - The global economic recovery has been weak, and financial institutions, including Huaxing Capital, are facing significant challenges. Despite performance losses and a shrinking scale, there are signs of marginal improvement in revenue growth and reduced losses in the latest financial report. The new management team is expected to bring changes to the business direction and operational model, which may be more significant than short-term performance data [1]. Group 1: Business Performance - Huaxing Capital's business is divided into investment banking, asset management, and Huaxing Securities. The investment banking sector, a core engine, has faced challenges, with 2024 Hong Kong IPOs totaling 70, raising HKD 87.6 billion, an 88% increase year-on-year, but still far from the highs of 2020 and 2021 [2]. - In the U.S. market, Chinese company IPOs in 2024 reached 62, raising USD 3 billion, both figures doubling year-on-year but still significantly lower than the peaks of 2020 and 2021 [4]. - Huaxing Capital's investment banking revenue was RMB 220 million in 2024, a 16.8% increase year-on-year, achieved by focusing on high-value sectors like AGI and advanced manufacturing [5]. - The total AUM for Huaxing Capital was RMB 32 billion, a 12.9% decrease year-on-year, reflecting pressure on the asset management business due to a narrowed exit path [5]. Group 2: Asset Management Insights - The investment management segment generated RMB 316 million in revenue, a 17.2% increase, contributing 38% to the group's total revenue [6]. - Huaxing Capital's fund exit amount reached RMB 3.2 billion in 2024, with five of the ten main funds achieving a DPI over 100%, indicating strong returns for LPs [7][8]. - The company is increasing its focus on sectors like technology, renewable energy, and healthcare to align with economic transformation trends [7]. Group 3: Huaxing Securities Performance - Huaxing Securities faced challenges in the A-share market, with IPO financing dropping to RMB 67.35 billion, an almost 80% decrease year-on-year, marking the first time below RMB 100 billion since 2015 [9]. - Despite the downturn, Huaxing Securities achieved significant growth in its wealth management business, with user registrations and new clients increasing by 95% and 208%, respectively [9]. Group 4: Future Development and Policy Environment - Huaxing Capital's future development will be influenced by policy guidance, industry cycles, and organizational changes [10]. - The China Securities Regulatory Commission's new policies encourage mergers and acquisitions, particularly in semiconductor and renewable energy sectors, aligning with Huaxing Capital's focus [12]. - Hong Kong's regulatory changes are enhancing its position as a preferred listing location for innovative tech companies, which complements Huaxing Capital's recent initiatives in digital asset services [13][14]. - The new management has shifted the focus towards "technology + industry," aiming to deepen investments in AGI and explore Web3.0 and cryptocurrency sectors [14][15]. Group 5: Resilience and Strategic Positioning - Huaxing Capital demonstrates resilience by actively restructuring rather than passively contracting during market downturns, focusing on the rise of Chinese technology [16]. - The company has sufficient cash reserves and has cleared its debts, providing a safety net to navigate industry fluctuations and seize opportunities during recovery [17].

Core Viewpoint - Huaxing Capital Holdings reported a total revenue and net investment income of approximately 840 million yuan for 2024, representing a year-on-year growth of 5.23% [1] - The company recorded a loss attributable to shareholders of approximately 179 million yuan, narrowing by 62.06% compared to the previous year [1] - Adjusted net loss was approximately 301 million yuan, a reduction of 49.22% year-on-year [1] Group Performance - The fourth quarter of 2024 saw significant improvements in revenue and operating profit compared to the first three quarters, with total revenue for the fourth quarter accounting for 46% of the annual revenue [1] - Excluding Huaxing Securities, total revenue and net investment income for 2024 were 590 million yuan, a year-on-year increase of 10%, with operating profit of 53 million yuan, reversing the previous year's loss [1] Huaxing Securities - Huaxing Securities achieved total revenue and net investment income of 250 million yuan, accounting for 30% of the group's total revenue and net investment income [2] - The "Duoduo Jin" app has significantly contributed to business development, with a 95% increase in registered users to 390,000 by the end of December 2024, and a 208% increase in new customers compared to the same period in 2023 [2] - Customer asset scale grew by 146% compared to the end of 2023, and Huaxing Securities completed several financing projects during the reporting period [2] Strategic Focus - The company will continue to focus on the "technology + industry" theme, deepening its layout in AGI and embodied intelligence, while expanding mergers and acquisitions and cross-border business [3] - Huaxing Capital aims to explore Web 3.0 and cryptocurrency asset fields to lead innovation in technology [3] - The company will strengthen post-investment management and risk control to enhance asset operation efficiency, aiming to create long-term value for shareholders [3]

Financial Performance - Total revenue for the year ended December 31, 2024, was RMB 777.1 million, a decrease of 22.7% from RMB 1,006.1 million in 2023[6]. - The adjusted net loss attributable to the company's owners for the year was RMB 300.8 million, a reduction of 49.3% compared to RMB 592.4 million in 2023[7]. - The company reported a pre-tax loss of RMB 162.6 million, down from RMB 340.7 million in 2023, showing improved financial performance[6]. - The total loss for the year attributable to the company's owners was RMB 179.0 million for the year ended December 31, 2024, compared to RMB 471.9 million for the year ended December 31, 2023, representing a reduction of 62.0%[62]. - The company reported a net loss of RMB 210,659,000 for 2024, a reduction of 54.4% from a loss of RMB 460,993,000 in 2023[97]. - Basic and diluted loss per share for 2024 was RMB (0.35), an improvement from RMB (0.94) in 2023[97]. - The income tax expense for the year ended December 31, 2024, was RMB 48.1 million, down from RMB 120.3 million for the year ended December 31, 2023[61]. - The net investment income for the year ending December 31, 2024, was RMB 62.5 million, compared to a net investment loss of RMB 208.2 million for the year ending December 31, 2023[49]. Revenue Breakdown - The investment management business contributed 38% to the total revenue, with total fund exit amounts reaching RMB 3.2 billion during the period[12]. - The investment banking business generated total revenue of RMB 220 million, reflecting a year-on-year growth of 16.8%[13]. - The total revenue and net investment income for Huaxing Securities reached RMB 250 million, accounting for 30% of the group's total revenue and net investment income[15]. - Revenue from mainland China was RMB 646,831,000, down 25% from RMB 862,258,000 in 2023[111]. - Customer contract revenue recognized at a point in time was RMB 434,891,000, a decrease of 6.4% from RMB 464,798,000 in 2023[112]. - Revenue from advisory and underwriting services dropped by 70.7% to RMB 25.0 million in 2024[39]. - Sales, trading, and brokerage revenue increased by 125.1% to RMB 80.7 million in 2024[39]. Operational Efficiency - The company reduced its workforce to 475 employees, a decrease of 16.1% compared to the previous year, leading to further reductions in non-labor costs[11]. - The operating loss for the investment banking segment decreased by 49.7% to RMB 34.8 million, reflecting improved operational efficiency[25]. - The total operating expenses for the company decreased by 11.5% from RMB 995.8 million for the year ending December 31, 2023, to RMB 881.3 million for the year ending December 31, 2024[50]. - The operating expenses for Huaxing Securities decreased by 1.7% from RMB 347.8 million for the year ending December 31, 2023, to RMB 342.0 million for the year ending December 31, 2024[40]. - The total employee compensation expense, including share-based payment expenses, was RMB 485.8 million for the year ended December 31, 2024[75]. Investment Performance - The cumulative unrealized carried interest as of December 31, 2024, was RMB 2.1 billion, with net carried interest at RMB 600 million[12]. - The internal rate of return for self-managed private equity funds was 17.4% and for third-party funds was 15.1% as of December 31, 2024[28]. - The total assets of Huaxing Securities amounted to RMB 3.7 billion, with net assets of RMB 2.4 billion and high liquidity assets totaling RMB 2.8 billion[15]. - The company's total investments measured at fair value amounted to approximately RMB 2,981.1 million as of December 31, 2024, an increase of 24.3% from RMB 2,397.4 million as of December 31, 2023[69]. - The fair value of financial assets measured at fair value through profit or loss increased to RMB 3,008,496,000 in 2024 from RMB 3,003,250,000 in 2023, showing a slight increase[139]. Future Outlook - The company plans to continue focusing on core business areas and optimizing assets to enhance operational performance in the future[11]. - The company plans to continue focusing on "technology + industry" and explore Web 3.0 and cryptocurrency asset fields[16]. - The company plans to focus on expanding its wealth management services for high-net-worth individuals and new economy entrepreneurs[106]. Governance and Compliance - The company has complied with all applicable provisions of the corporate governance code, except for the separation of the roles of Chairman and CEO until October 9, 2024[82]. - The audit committee has reviewed the audited financial statements for the year ending December 31, 2024, and discussed accounting policies and internal controls with senior management[86]. - The independent auditor's report indicates a reservation regarding the recoverability of restricted amounts totaling approximately RMB 78,768,000 as of December 31, 2024[93]. - The company has established various committees, including the nomination committee, remuneration committee, executive committee, and environmental, social, and governance committee[87]. - The company has adopted the standard code for securities transactions by directors and confirmed compliance during the reporting period[83][84]. Miscellaneous - The company did not declare or pay any dividends for the years ended December 31, 2024, and December 31, 2023[79]. - The company has not engaged in any significant litigation or arbitration during the reporting period[90]. - The company has not disclosed any significant post-reporting period events from December 31, 2024, to the announcement date[95].

作者｜Stone Jin 微信公众号｜ipozaozhidao 据IPO早知道消息，华兴资本控股有限公司（以下简称"华兴资本"或"公司"）于11月29日宣布，任 命公司联席总裁王力行为新任首席执行官。原首席执行官谢屹璟因个人及家庭原因，主动辞任首席执 行官及执行董事职务。任命后，王力行将继续担任公司执行董事。 华兴资本集团董事会主席许彦清 表示 ，"我们很欣慰看到王力行在与华兴资本同行的十七年中、在 以谢屹璟为核心的老一辈管理团队领导下，以正直善良为基准、持追求卓越之热诚，与公司风雨同 舟、携手共进，并逐渐成长为公司新一代的领路人。他的职业经历，也是更多'CR Baby'的真实写照 和突出代表。 弦歌不辍，薪火相传。感谢王力行在华兴成长道路的卓越贡献，董事会热烈欢迎王力行履新本公司首 席执行官。我们欣慰地看到，在不断变化的外部环境与挑战中，王力行在不仅传承了华兴资本的创业 精神，在真诚为客户创造价值之余，更以'分享开放'的行事风格，在公司的管理运营、人才梯队建设 以及团队管理等诸多方面做出贡献，赢得了客户、团队和行业的广泛认可，并逐渐成长为华兴资本新 一代中深孚众望的领军人物。日拱一卒无有尽，功不唐捐终入海。 ...