Chifeng Jilong Gold Mining Co.,Ltd. (Stock Code: 600988) saw its A-shares open at the daily downside limit following an announcement that Zijin Mining Group is set to become its controlling shareholder.
On the morning of March 23, both Zijin Mining Group (Stock Code: 601899) and Chifeng Jilong Gold Mining announced that Zijin Mining plans to acquire a 25.85% stake in Chifeng Gold Mining through a combination of an A-share purchase and an H-share private placement, thereby gaining control.
Trading in Chifeng Gold Mining shares resumed on March 23, but both companies' stock prices fell sharply. Chifeng Gold Mining's A-shares opened at the daily downside limit, while its H-shares opened nearly 19% lower. Zijin Mining's A-shares opened down 4.55%, with its H-shares down 5.44%.
The news comes amid a continued decline in international gold prices, which fell below $4,400 per ounce during the morning session.
The change in control transaction for Chifeng Gold Mining is structured as a two-step process involving an "agreed transfer of existing A-shares plus subscription for newly issued H-shares."
The first step is an A-share agreement transfer. Zijin Gold, a subsidiary of Zijin Mining, signed a share transfer agreement with Chifeng Gold Mining's controlling shareholder, Li Jinyang, and her concert party, Zhejiang Hanfeng Investment Co., Ltd., to acquire a total of 242 million A-shares of Chifeng Gold Mining held by them. The transfer price was set at 41.36 yuan per share, representing a 1.3% premium over Chifeng Gold Mining's last A-share closing price of 40.82 yuan before the trading halt. This part of the transaction is valued at approximately 10.006 billion yuan.
Notably, Zijin Gold has committed not to transfer these shares for 18 months after acquisition, signaling its strategic intent for long-term holding and deep integration. These shares represent 12.73% of Chifeng Gold Mining's total shares prior to the transaction and constitute the entire shareholding of Li Jinyang and her concert party.
The second step is an H-share private placement. Zijin Gold and Chifeng Gold Mining simultaneously signed a strategic investment agreement. Zijin Gold plans to subscribe for 311 million new H-shares of Chifeng Gold Mining at a price of 30.19 Hong Kong dollars per share. This issue price is approximately 83% of the average H-share price over the sixty full trading days before the trading halt and represents a discount of about 28.3% to the H-share closing price of 42.08 Hong Kong dollars on March 18. This pricing lowers Zijin Mining's investment cost while raising sufficient funds for Chifeng Gold Mining. The subscription amount is approximately 9.386 billion Hong Kong dollars, equivalent to about 8.252 billion yuan. The net proceeds, about 9.292 billion Hong Kong dollars, will be used for Chifeng Gold Mining's business operations, future development, and to enhance financial flexibility.
The total consideration for the two transactions amounts to approximately 18.258 billion yuan. Upon completion, Zijin Gold will hold a total of 572 million shares in Chifeng Gold Mining, representing about 25.85% of the total shares after the issuance, making it the single largest shareholder. Zijin Mining will formally obtain control of Chifeng Gold Mining and consolidate its financial statements.
Zijin Mining stated that this acquisition aligns with regulatory policies encouraging leading listed companies to engage in mergers and acquisitions within the same industry, which is conducive to the integration of quality resources and enhances the investment value of both Zijin Mining and Chifeng Gold Mining.
Following the completion of the A-share agreement transfer, Li Jinyang and her concert party will no longer hold any shares in Chifeng Gold Mining, fully exiting the gold company founded by her late husband, Zhao Meiguang, while cashing out approximately 10.006 billion yuan.
The change in Li Jinyang's shareholding stemmed from an unexpected inheritance. This complete exit concludes her approximately four-year tenure as an owner who did not participate in management.
Public information shows that Chifeng Gold Mining's predecessor was a private enterprise founded by Zhao Meiguang, renowned as one of Inner Mongolia's top four wealthy individuals. Through strategic deployment in gold resources, he built the company into a well-known domestic gold producer. Before the trading halt in March 2026, Chifeng Gold Mining's market capitalization exceeded 70 billion yuan.
In December 2021, Zhao Meiguang passed away due to illness. According to his will, all his personal assets were inherited solely by his wife, Li Jinyang. At just 38 years old, Li Jinyang overnight became the actual controller of this multi-billion yuan listed company.
Unlike traditional family business successors, Li Jinyang maintained a low profile after inheriting the shares, never holding any position at Chifeng Gold Mining and rarely appearing in public. Shortly after inheriting the shares, she informed the board that she would not join the management, instead fully supporting the management team led by Chairman Wang Jianhua. This governance model is highly unusual among domestic resource-based private enterprises.
In fact, Zhao Meiguang had laid the groundwork for corporate governance before his passing. In November 2020, he transferred 98.17 million shares (5.90% of the total shares) to Wang Jianhua at 17 yuan per share, totaling 1.669 billion yuan, laying a foundation for management stability.
Under Wang Jianhua's leadership, Chifeng Gold Mining has experienced rapid growth and sustained profit improvement. In 2024, the company achieved operating revenue of 9.026 billion yuan, a year-on-year increase of 24.99%, and net profit attributable to shareholders of 1.764 billion yuan, surging 119.46%. For 2025, the company forecasts net profit attributable to shareholders between 3 billion and 3.2 billion yuan, an increase of 70% to 81%.
From a market perspective, Li Jinyang's exit is not coincidental. Previous announcements from Chifeng Gold Mining show that as early as 2022, Li Jinyang attempted to transfer 96 million shares, but the transaction was not completed.
Industry analysis suggests that Li Jinyang's decision to fully exit comes at a time when Chifeng Gold Mining's performance is strong, but international gold prices and the company's share price have retreated from their peaks, representing a rational asset liquidation at a relatively high point in the industry cycle.
Comments