The recent listing of Cxmt Corporation has undoubtedly been a rare and significant capital event in the A-share market in recent years.
According to the prospectus, prior to the IPO, Cxmt Corporation had three shareholders holding identical stakes, jointly ranking as the tenth-largest shareholder.
These three tenth-largest shareholders are Beijing Fengyi, controlled by Tencent, Hefei Jianchang, controlled by the Hefei state-owned assets, and Harmony Health Insurance Co., Ltd..
These three companies each hold 901 million shares of Cxmt Corporation, representing a 1.5% stake each. It is estimated that after the dilution from the new share issuance, their shareholding will adjust to 1.35%.
The shareholder roster of Cxmt Corporation is star-studded, with various capital players well-represented. Notably, the smaller company Harmony Health holds the largest stake among the insurance capital shareholders, surpassing other major insurance giants.
As a pre-IPO financial investor, Harmony Health's shares are subject to only a 12-month lock-up period, allowing for sale one year after the listing.
This 1.35% stake represents an enormous, truly massive asset and unrealized gain for Harmony Health.
The market widely anticipates that Cxmt Corporation's post-listing market capitalization will be at least RMB 2 trillion, with optimistic estimates placing the total market value around RMB 3 to 3.5 trillion.
Based on this calculation, the value of Harmony Health's 1.35% stake would be approximately RMB 30 billion to 45 billion. Compared to the initial investment cost of RMB 901 million, the unrealized gain on this equity for Harmony Health would exceed RMB 40 billion.
To put this staggering figure into perspective, consider the following comparisons.
In 2018, when Harmony Health's equity was wholly transferred, its total valuation was only RMB 22.8 billion. Fujia Group invested RMB 11.6 billion to acquire a 51% controlling stake.
RMB 40 billion is 3.5 times the RMB 11.6 billion investment.
At the end of 2016, the final solvency report showed Harmony Health's total assets were about RMB 250 billion. When Fujia Group took over in 2020, total assets were approximately RMB 320 billion. In 2021, Harmony Health announced in its investment disclosure for SK Tower that its total assets were RMB 326.2 billion. The 2024 social responsibility report disclosed total assets of RMB 452 billion at the end of 2024.
RMB 40 billion represents roughly 10% of the RMB 452 billion in total assets.
Harmony Health originated from Anbang, inheriting a significant burden of non-performing assets. Market estimates suggest the Anbang era left behind RMB 12-15 billion in non-performing assets. Additionally, there were impairments of about RMB 15 billion on heavily invested real estate stocks and accumulated operating losses of approximately RMB 8-9 billion. Combined, Harmony Health's cumulative losses are estimated at RMB 35-45 billion.
The RMB 40 billion unrealized gain could almost entirely cover Harmony Health's accumulated historical burdens.
In other words, if the RMB 40 billion gain can be realized through divestment, Harmony Health would successfully transform into a financially sound and normal insurance company.
Turning the company's fortunes with a single investment could indeed be considered part of the Chinese dream.
It is worth noting that this dream-like investment is likely the final major investment decision made by Wang Yizheng, the actual controller of Harmony Health, while he was still in his position.
Wang Yizheng, the absolute controlling shareholder of Fujia Group and the actual controller of both Fujia Group and Harmony Health, is a mysterious and low-profile wealthy individual from Northeast China.
Wang Yizheng, a former firefighter, built his business over 20 years. Fujia Group, under his name, has a registered capital of RMB 5 billion, with Wang holding over 98%. Fujia Group is the private enterprise contributing the most tax revenue in Liaoning province.
After spending a huge sum to acquire Harmony Health in 2019, Wang Yizheng managed the insurer meticulously, personally overseeing every asset and liability.
From this perspective, the investment in Cxmt Corporation was undoubtedly a decision made personally by Wang Yizheng.
Moreover, this appears to be the last major investment decision Wang Yizheng made personally while visibly active.
Based on industrial and commercial registration information, Harmony Health's investment in Cxmt Corporation was registered in February 2022. This means that, at the latest, Harmony Health had completed its due diligence, decision-making, and capital contribution before the 2022 Spring Festival.
Just days after the capital contribution, around the Lantern Festival in 2022, media outlets including Caixin reported that Wang Yizheng had been taken away by relevant authorities for investigation and had lost contact.
On February 28, Fujia Group and Harmony Health publicly refuted the rumors, stating Wang Yizheng had not "lost contact" but was hospitalized in Dalian for health reasons and would return to work in the short term.
Despite this refutation, Wang Yizheng never returned to his position.
Half a month after the refutation, on March 15, 2022, Wang Yizheng directly resigned as Chairman of Fujia Group and simultaneously withdrew his candidacy for Chairman of Harmony Health, completely exiting the senior management ranks of both Fujia and Harmony Health.
Additionally, along with Wang Yizheng, the General Manager, Board Secretary, and Compliance Officer appointed by him also left Harmony Health. The industry termed this a comprehensive "de-Wang" process.
Since then, there have been no further public reports about Wang Yizheng. He has not attended public meetings, market events, or given any media interviews or appearances.
An acquaintance remarked that Wang Yizheng's name seemed familiar, wondering if he had been reported before.
The response confirmed that, in a specific whistleblower letter, aside from Wang Yizheng, the other two individuals mentioned are believed to have already been removed from their positions.
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