Actual Controller "Retreats While the Going is Good": Chifeng Gold Changes Hands to Zijin Mining, What's the True Worth of Taking Control for 18.2 Billion Yuan?

Image source: Visual China

Blue Whale News, March 23rd (Reporter Wang Xiaonan) On March 23rd, Chifeng Gold (600988.SH) and Zijin Mining (601899.SH) both announced that Zijin had acquired control of Chifeng Gold through a package agreement, with a total transaction value of approximately 18.258 billion yuan. During a gold price rally, the integration of these two “A+H” listed companies has caused quite a stir in the capital markets—on one side, the widow of Chifeng Gold’s founder is “retreating quickly,” and on the other, Zijin Mining, known as the “mining king,” is once again making strong moves in its capital expansion.

On March 23rd, trading of Chifeng Gold’s stock was resumed, and both stocks plummeted. By the close of trading, Chifeng Gold’s A-shares hit the daily limit down, and H-shares fell 25.1%; Zijin Mining’s A-shares dropped 3.38%, and H-shares fell 4.97%.

With 18.258 billion yuan spent to gain control, how substantial is Chifeng Gold’s value?

On March 22nd, Li Jinyang, the controlling shareholder and actual controller of Chifeng Gold, along with his concerted action partner Zhejiang Hanfan Venture Capital Partnership (Limited Partnership) (“Zhejiang Hanfan”), signed a share transfer agreement with Zijin Gold (Group) Co., Ltd., a wholly owned subsidiary of Zijin Mining. Zijin Gold plans to acquire 242 million shares, representing 12.73% of the company, at 41.36 yuan per share (a 1.3% premium over the pre-trading suspension closing price of A-shares). The transaction amounts to about 10.006 billion yuan.

On the same day, Chifeng Gold and Zijin Gold also signed a strategic investment agreement. Zijin Gold intends to subscribe to 310 million H-shares of Chifeng Gold at 30.19 HKD per share (about 83% of the six-month average price of Chifeng Gold’s H-shares before suspension), with a total subscription amount of 9.386 billion HKD (approximately 8.252 billion RMB). The total transaction value is about 18.258 billion yuan.

Notably, Zijin Mining already holds 19 million shares of Chifeng Gold through other wholly owned subsidiaries. After the transaction, Li Jinyang and Zhejiang Hanfan will no longer hold shares in Chifeng Gold; Zijin Mining’s wholly owned subsidiaries will hold a total of 572 million shares, accounting for approximately 25.85% of the combined shares after the transfer and H-share issuance. The controlling shareholder of Chifeng Gold will change from Li Jinyang to Zijin Gold, and the company’s actual control will shift from Li Jinyang to the Finance Bureau of Shanghang County, with consolidated financial statements for Chifeng Gold.

Zijin Mining states that acquiring Chifeng Gold aligns with its M&A strategy, significantly enhances its resource reserves, strengthens its ability to integrate gold resources, and improves its overall gold sector strength. All of Chifeng Gold’s gold mines are operational, and the acquisition can contribute to production and profits within the same year.

In recent years, Chifeng Gold’s performance has shown rapid growth. In 2024 and 2025, the company’s total revenue is projected to reach 9.026 billion yuan and 12.639 billion yuan, respectively, with year-on-year increases of 24.99% and 40.03%. Net profit attributable to shareholders is expected to be 1.764 billion yuan and 3.082 billion yuan, up 119.46% and 74.70%, respectively.

Thanks to a sharp rise in gold prices, Chifeng Gold reported an impressive annual performance in 2025—the first time revenue exceeded 10 billion yuan, and net profit hit a record high. Despite this, Chairman Wang Jianhua questioned in the annual report, “If we strip away the benefits of rising gold prices, how solid is our internal growth?”

Currently, Chifeng Gold operates six gold mines and one polymetallic mine, with business spanning China, Southeast Asia, and West Africa. Its main product is gold, but it also produces copper, lead, zinc, molybdenum, and rare earth metals.

Since 2018, Chifeng Gold has acquired the Vientiane Mine in Laos and the Vasa Gold Mine in Ghana. Through new project acquisitions and technological upgrades of existing projects, its gold production has generally increased. From 2021 to 2025, gold output rose from 8.1 tons to 14.51 tons, with an average annual growth rate of 26%.

However, Wang Jianhua also noted in the annual report, “In 2026, we will still face many challenges: the international situation is complex and rapidly changing, competition for global gold resources is intensifying, production growth and cost control are under pressure, and key projects face tough hurdles…”

This concern is reflected in Chifeng Gold’s past data. In its mid-year report for 2025, the company lowered its gold production target for 2025 from 16.7 tons to 16 tons. In its full-year earnings forecast, actual production was only 14.4 tons, reaching just 90% of the target. Meanwhile, the company expects 2026 gold production to be 14.7 tons, with copper output of 11,000 tons—only a slight increase over 2025.

Additionally, the 2025 annual report mentions the company’s third employee stock ownership plan. If certain unlocking conditions are met—specifically, a 5% or higher year-on-year increase in gold production in 2025—participants can unlock all granted shares in February 2026. Since the 2025 gold output growth was below 5%, the conditions were not met, and related equity-based payment expenses were not recognized this year.

Founder’s widow considers early retirement? Personal investments have been highly profitable

On March 10, 2025, Chifeng Gold (6693.HK) became the third gold company listed both in Hong Kong and mainland China, after Zijin Mining and Shandong Gold. Once a rising star, the company was founded by Zhao Meiguang, one of Inner Mongolia’s “Four Major Riches.” Zhao passed away in December 2021 due to illness, and his wife Li Jinyang inherited all shares, becoming the new actual controller. However, Li Jinyang has not directly managed the company; it is currently led by professional manager Wang Jianhua.

As Zhao Meiguang’s widow, Li Jinyang took over the company’s control four years ago. Although she does not participate directly in operations, her performance has been impressive, and with Chifeng Gold just celebrating its first year as an “A+H” dual listing, and the gold market booming, this gold giant valued at over 700 billion yuan is about to have a new owner—an intriguing development.

In fact, Li Jinyang’s decision to “retreat quickly” may have been made early in her inheritance of the shares. Three months after becoming the controlling shareholder in March 2022, she signed a share transfer agreement with a trust plan, proposing to sell 5.77% of shares at 16.79 yuan per share, aiming to optimize the equity structure, attract strategic investors, and raise funds to repay debts.

Li Jinyang’s personal holdings are relatively limited. She directly owns 1.16% of Inner Mongolia Ningcheng Rural Commercial Bank. Notably, her high-profile investments include a large stake in Haiguang Information (688041.SH).

Before Haiguang Information’s listing, Ningbo Dachen and Ningbo Shangcheng held 4.94% and 0.57% of Haiguang respectively. Tianyancha shows Li Jinyang owns 54.27% of Ningbo Dachen and 15.15% of Ningbo Shangcheng. In 2024, these holdings were transferred. According to an announcement on May 18, 2024, Ningbo Dachen and Ningbo Shangcheng sold a total of 27.8921 million shares of Haiguang at 63.03 yuan per share, totaling 1.758 billion yuan—more than double the issuance price of 36 yuan per share.

Both companies have since been deregistered. According to Wind’s top ten shareholder data, in mid-2024, Ningbo Dachen, which had completed the above transfer, last appeared among Haiguang’s top ten shareholders. By the third quarter of 2024, Li Jinyang directly held about 65.73 million shares, accounting for 2.83%, with an average price of 76.94 yuan per share—roughly 50.57 billion yuan invested. As of March 23rd, Haiguang’s stock price was 207.04 yuan per share, making her holdings worth over 13.609 billion yuan, with an unrealized gain of 8.552 billion yuan.

Li Jinyang’s personal investment portfolio mainly revolves around Hanfan Capital, which she controls through HanFeng United, holding 74% of its shares. The firm engages in primary market strategic investments, secondary market securities trading, asset management, market value management of listed companies, and mergers and acquisitions. HanFeng Capital’s investments span agriculture, fisheries, healthcare, entertainment, and big data.

In 2018, HanFeng Capital co-founded Hantai Zhongxing with Zhao Meiguang and invested in HeLiChengGuang through Hantai Zhongxing. HeLiChengGuang’s notable works include the “Tiny Times” series and “Old Boys: Raptors Crossing the River,” with director Guo Jingming holding a 3.72% stake. HeLiChengGu was listed on the New Third Board in 2016. HanFeng Capital has also invested in YunTu Times, Qiming Chemical, Hanlin Jingwei, and other companies.

In 2019, HanFeng Capital’s funds participated heavily in convertible bonds issued by Tongwei, Qi Ming Software, and Zheshang Securities. In 2023, when Jingzhi Da was listed on the STAR Market, Julu Sanhang held a 1.1% stake, and HanFeng Capital was a limited partner owning 12.38% of Julu Sanhang’s funding.