Hang Chi Holdings Limited (Hang Chi Holdings) (8405.HK), a well-known operator of home for the aged in Hong Kong, went public on the Stock Exchange of Hong Kong on July 12. As a cornerstone investor, China Minsheng Futurelife Holding Group Co., Ltd. (CMIG Futurelife) subscribed 32 million shares, accounting for 32% of the total issued shares.
Zhongyuan Bank (1216.HK), the largest urban commercial bank in Henan Province, was listed on the Stock Exchange of Hong Kong on July 19. As a cornerstone investor, CMIG Futurelife subscribed 726 million H-shares of Zhongyuan Bank via Tiankun Investment, an indirect wholly-owned subsidiary of CMIG Futurelife.
As China Minsheng Investment Group (CMIG) welcomes its third anniversary, CMIG Futurelife took "major moves" frequently on the capital market in the just-concluded July and is turning out for the best on the road of industry-finance integration.
Making arrangements in aged care and grafting capital to facilitate people's well-being
With its successful listing on the Stock Exchange of Hong Kong, Hang Chi Holdings becomes the second listed company specializing in retirement home on the Hong Kong stock market. Wang Hui, Vice President of CMIG and Chairman of CMIG Futurelife, and Yik Tak Chi, Chairman & CEO of Hang Chi Holdings, jointly "rang the bell" at the Stock Exchange of Hong Kong on July 12, starting the listing ceremony. While witnessing the historic moment of Hang Chi Holdings, they also witnessed the "major step" taken by CMIG Futurelife in making expansion in the field of aged care.
As an outstanding operator of elderly home in Hong Kong, Hang Chi Holdings is oriented towards offering high-level accommodation services to the elderly, enjoying profound experience and glorious history in the industry of elderly home operation. Hang Chi Holdings runs 5 nursing homes and 589 nursing home beds under the brands of "Shui On" and "Shui Hing" in four districts of Hong Kong. The overall occupancy rate reaches 93.2%, higher than the average figure of Hong Kong, which stands at 80% to 85%. In 2016, Hang Chi Holdings recorded nearly HD$59 million in revenue, up by 47.7% year on year.
For Hang Chi Holdings, its listing represents an important milestone in its development process and will bring great development opportunities to it.
As a key platform for the upgrading of community consumption under CMIG and the operation carrier of the home-based care industry, one of the three defining businesses of CMIG, CMIG Futurelife has always devoted itself to the arrangement and development of the aged care industry with a high sense of social responsibility. In the past less than a year since its establishment, China Minsheng Investment Group Home-based Aged Care Co., Ltd. (CMIG Home-based Aged Care) has relied on the massive community property accesses of CMIG Futurelife, adopted the business model of "one network, one finance and one platform", and joined hands with government in developing industrial funds to widely attract investment. It has utilized the financial gene and characteristic of industry-finance integration of CMIG Futurelife in a flexible manner, and made arrangements in Shanghai, Beijing, Chengdu and other cities. For now, it runs 63 outlets, 2,631 beds and provides services for 130,000 person-times as it rapidly develops the aged care service network across the board. In the meantime, CMIG Home-based Aged Care seeks for prime aged care assets across the world and brings in advanced management systems and high-value brands.
This time, as the cornerstone investor, CMIG Futurelife subscribed 32 million shares of Hang Chi Holdings, accounting for 32% the total issued shares. This marks that CMIG Futurelife has entered into a new stage of the development of aged care industry. CMIG Futurelife's investment in Hang Chi Holdings is designed to propel the deeper cooperation between CMIG Home-based Age Care and Hang Chi Holdings, combine the extensive experience of Hang Chi Holdings in operating elderly home with CMIG Futurelife's localized advantage in the aged care market in Mainland China, and jointly develop the broad aged care market in Mainland China, thereby delivering quality aged care services to the elderly people and jointly building a leading aged care enterprise with wide international influence.
On the very day when Hang Chi Holdings went public, the shares under public offering received 37.9 folds of excessive subscription and the share price surged rapidly after opening quotation, with the amount of increase exceeding 61% for a time, and reaching 22.22% at closing. Such a sound performance enabled Hang Chi Holdings to rank in the second place in terms of the amount of increase of Hong Kong stocks. This has fully proved that the aged care industry has gained the high recognition of the market, and also been a source of confidence for us in the future internationalized development of the aged care undertaking of CMIG Futurelife.
The alliance between giants continues the predestined tie in industry-finance cooperation.
If we say joining hands with Hang Chi Holdings is a whole-new expansion, then our assistance with Zhongyuan Bank in its listing is because of the predestined tie.
As early as in late-2016, Shanghai Yiqian Network Information Technology Co., Ltd., a subsidiary of CMIG Futurelife, teamed up with Zhongyuan Bank in establishing Henan Zhongyuan Consumer Finance Corp., Ltd. with the joint contribution of RMB500 million, which offers phased consumption and loan on credit services to individual consumers via technological innovation, channel integration, big data application and other means by centering on the segments closely related to residents' life.
Built on this, the listing of Zhongyuan Bank on the Stock Exchange of Hong Kong is another successful cooperation between CMIG Futurelife and Zhongyuan Bank. As the only provincial-level urban commercial bank of Henan Province, Zhongyuan Bank is created by merging 13 small banks, including Kaifeng Bank, Anyang Bank and Hebi Bank. By the end of 2016, Zhongyuan Bank had 1 head office business department, 17 branches, 421 sub branches, and 439 business outlets in 18 provincial cities and 82 counties, realizing the full coverage and nearly 80% of coverage of provincial cities and counties respectively. Relevant data showed that in 2016, Zhongyuan Bank registered RMB11.8 billion in operating receipt and its compound annual growth rate average, tier-1 capital adequacy ratio, non-performing loan ratio and provision coverage stood at 11.4%, 11.24%, 1.86% and 207.09% separately.
Zhongyuan Bank went public in Hong Kong on July 19 and the offer price was HD$2.45 per share. The company issued a total of 3.3 billion H-shares and raised about HD$7.115 billion, ranking the third on the Hong Kong stock market in the year. Lv Benxian, Vice President of CMIG, Wang Hui, Chairman of CMIG Futurelife, and Dou Rongxing, Chairman of Zhongyuan Bank, as well as all executives of the Bank witnessed the arrival of the new era in the development of Zhongyuan Bank.
As a subsidiary of CMIG, a leading globalized private investment group in China, CMIG Futurelife adheres to the development strategy of "taking property as the foundation, finance as the method, and aged care as the defining feature", matches up China's major policy of reform on the supply side, integrates community value-added service through industry-finance integration, and cultivates the big ecological system of community services.
The strong alliance between CMIG Futurelife and Zhongyuan Bank will integrate CMIG Futurelife's industrial advantages with the financial strength of Zhongyuan Bank in an in-depth manner, jointly expand the financial market in China, give play to the strength of finance to provide residents with leading community financial services and aged care financial services in China, elevate the comprehensive competitive power of CMIG Futurelife in the field of inclusive finance in a holistic manner, and provide powerful support for speeding up CMIG Futurelife's industrial layout and leading the upgrading of community consumption.
From Hang Chi Holdings to Zhongyuan Bank, CMIG Futurelife made two excellent appearances on Hong Kong's capital market within just one month, thus opening up a still wider development road for its future while implementing CMIG's strategy for industry-finance integration.