Multiple "Xu Xiang concept stocks" involved in the case will be auctioned off, with a value exceeding 1.6 billion yuan. The "Number One in Private Equity" has held the shares for 10 years and may still be facing unrealized losses.

After regaining his freedom, the low-key "private equity king" Xu Xiang once again attracted market attention at the end of this year. On the evening of December 25th, Daheng New Epoch Technology, Inc. (600288.SH), Ningbo Zhongbai (600857.SH), and Deluxe Family (600503.SH) each disclosed that the Qingdao Intermediate People's Court will auction off all the equities related to the "Xu Xiang case", with two listed companies possibly undergoing a change of ownership. Financial media reporters noted that the combined value of the equities to be auctioned exceeds 1.6 billion yuan. However, the time and format of these three judicial auctions have not been determined at this time. The equities of the three listed companies involved will be auctioned off, potentially leading to a change of ownership for Daheng New Epoch Technology, Inc., Ningbo Zhongbai, and Deluxe Family. Overall, the combined value of the equities of Ningbo Zhongbai, Daheng New Epoch Technology, Inc., and Deluxe Family to be auctioned totals approximately 1.661 billion yuan. If the equities held by Zheng Sujing in Daheng New Epoch Technology, Inc. and those held by Tibet Zetian in Ningbo Zhongbai are successfully auctioned, both companies will have a change in control. Holding for about 10 years, or still floating loss According to the announcement, in 2014, Tibet Zetian sold and acquired approximately 15.69% of the equity of Ningbo Zhongbai through the court, at a transaction price of 9.10 yuan per share, becoming the largest shareholder of Ningbo Zhongbai. Zhu Rong, who has a close relationship with Xu Xiang, acquired 8.42% of Ningbo Zhongbai's shares held by Youngor Fashion from Zhu Renbao, at a price of 12.02 yuan per share, becoming the second largest shareholder of the company. On July 10, 2015, Tibet Zetian increased its shareholding in Ningbo Zhongbai by 200,500 shares. As a result, Tibet Zetian's shareholding in Ningbo Zhongbai increased to 15.78%. Wind data shows that as of the close on December 25th, the stock price of Ningbo Zhongbai was 7.22 yuan per share. When Zheng Sujing acquired 29.52% of the equity of Daheng New Epoch Technology, Inc. in 2014, the transfer price was 9.32 yuan per share, and the transfer price was 1.202 billion yuan. As of the close on December 25th of this year, the stock price of Daheng New Epoch Technology, Inc. was 9.00 yuan per share. Deluxe Family was once one of Xu Xiang's classic "works". In 2014, Shanghai Zexi subscribed for 90 million shares of Deluxe Family at a price of 3.67 yuan per share through a company's private placement, becoming the second largest shareholder of the company. As of the close on December 25th, the stock price of Deluxe Family was 2.71 yuan per share. The "power struggle" of Deluxe Family may come to an end As of now, Shanghai Zexi is still the second largest shareholder of Deluxe Family. The major shareholder of Deluxe Family is Shanghai Nanjiang, but its ownership is only 7.12%. It is worth mentioning that as the Deluxe Family shares held by Shanghai Zexi will be judicially auctioned off, the "power struggle" of Deluxe Family may come to an end. In May 2023, Xu Xiang publicly criticized Deluxe Family through the media, stating that he could no longer tolerate it. If the fundamentals of Deluxe Family continue to deteriorate, it will face the risk of delisting, which is extremely irresponsible to the investors. Xu Xiang also mentioned that he had already nominated a director recommendation proposal to the company and requested a vote at the shareholders' meeting to supervise Deluxe Family's move towards emerging high-tech.The transformation and development of the technology industry will further stabilize the company's fundamentals and stock price.It is worth mentioning that after Shanghai Zexi invested in Deluxe Family, the company began to abandon its traditional real estate business and frequently expanded into fields such as Siasun Robot & Automation, graphene, near-space aircraft, and received acclaim from the capital market. Wind data shows that on May 28, 2015, Deluxe Family's stock price hit a historical high of 30.75 yuan per share. Based on this calculation, within less than a year of investment, Shanghai Zexi had a floating profit of over 2.437 billion yuan. However, with Xu Xiang going to prison, the stock price of Deluxe Family also plummeted. Currently, Deluxe Family's stock price is less than 1/10 of its peak in 2015. Facing Xu Xiang's actions, Deluxe Family believes that Shanghai Zexi's equity was frozen, and has not exercised its voting rights for more than 7 years. The proposal process has certain flaws. In the end, due to the opposition from shareholders such as Shanghai Zexi, all 21 proposals for the 2022 shareholder meeting of Deluxe Family were rejected, and the company also received a regulatory letter from the Shanghai Stock Exchange. In fact, after Xu Xiang was released from prison, he did not make many moves in the capital market. The last time he spoke out as a shareholder was in 2021 in the asset acquisition case of Wenfeng Great World Chain Development Corporation. At that time, Xu Xiang, as the second largest shareholder, bluntly stated, "The valuation of the target assets in the acquisition is too high, the quality is average, and the major shareholder of Wenfeng Great World Chain Development Corporation is suspected of embezzling the interests of the listed company. I firmly oppose this acquisition proposal." In the end, Wenfeng Great World Chain Development Corporation terminated the asset acquisition after Xu Xiang voiced his opinion. This article is reprinted from "Cai Lian She", GMTEight Editor: Liu Jiayin.