Chifeng Gold is still changing hands

Why Did Li Jinyang Choose to Cash Out After Inheriting a Billion-Dollar Fortune?

Gold has undoubtedly been one of the standout asset classes globally over the past three years. The rise in gold prices has led numerous gold companies to make frequent capital moves, including Chifeng Jilong Gold Mining Co., known as “China’s largest private gold producer.” On March 10, 2025, Chifeng Gold successfully listed on the Hong Kong Stock Exchange, becoming the first “A+H” listed company in Inner Mongolia and the third “A+H” gold mining stock in the country.

Driven by factors like the rising gold prices, Chifeng Gold, which owns numerous gold mines, saw its stock price skyrocket. Its stock price increased from about 4 yuan per share in 2019 to a peak of 51.5 yuan per share. This also propelled Chifeng Gold’s founder, Zhao Meiguang, into the billionaire ranks.

As the cycle rotates, by March 23, spot gold had declined for eight consecutive trading days, nearly erasing all gains from 2026. At this moment of plummeting prices, Chifeng Gold sold.

Zijin Mining Group Co., Ltd. (hereinafter referred to as “Zijin Mining”) announced that its wholly-owned subsidiary, Zijin Gold (Group) Co., Ltd., will invest approximately 18.258 billion yuan through a negotiated acquisition of A-shares and subscription of a directed issuance of H-shares, thereby acquiring control of Chifeng Jilong Gold Mining Co., Ltd. (hereinafter referred to as “Chifeng Gold”).

The transaction consists of two parts: 1. Acquisition of A-share equity at a price of approximately 10.006 billion yuan; 2. Subscription for directed issuance of H-shares at a price of approximately 9.386 billion Hong Kong dollars (about 8.252 billion yuan).

After the transaction is completed, the industry “old five” will officially come under the control of “old one” Zijin Mining, with the actual controller changing to the Finance Bureau of Shanghang County, Fujian Province.

The “Golden History” of Chifeng’s Richest Person

The story of Chifeng Gold begins with a businessman from Jilin—Zhao Meiguang. This entrepreneur, born in the 1960s, initially transformed a local small mining enterprise into a leading gold company by acquiring bankrupt silver and gold mines, earning him recognition as one of “Inner Mongolia’s four billionaires.”

Gold mining is indeed a capital-intensive industry, and Zhao Meiguang’s wealth accumulation stemmed from decisive capital acquisitions.

The first significant acquisition was of the Tianbaoshan Mining Bureau, one of the eight major mines. In 2004, after the Tianbaoshan Mining Bureau in Yanbian, Jilin, went bankrupt, Zhao Meiguang, then chairman of Century Xing Group, acquired it for 170 million yuan and subsequently established Jilin Hanfeng Mining Technology Co., Ltd. on this basis.

Tianbaoshan Mining Bureau is a century-old mineral site, reputedly the source of silver cups used by Empress Dowager Cixi. After taking control, Zhao Meiguang lived and worked alongside the miners, establishing multiple beneficiation plants and ultimately reaping returns worth over a hundred million annually.

During this period, Zhao Meiguang also turned his attention to gold mines. Around 2010, he purchased Jilong Mining through a public auction of state-owned enterprise bankrupt assets, laying the foundation for his future gold endeavors.

Jilong Mining was established in 2005 and was previously the state-owned Chifeng Zhuanshanzi Gold Mine. After Zhao Meiguang took over, it became the first subsidiary of “Chifeng Gold,” primarily engaged in gold mining and comprehensive resource recycling, producing various precious metals including gold, silver, bismuth, palladium, and rhodium.

In December 2012, Zhao Meiguang reached a pivotal moment in his career—he injected Chifeng Jilong Mining (the core entity of Chifeng Gold) into the A-share company Dongfang Baolong (ST Baolong), successfully completing a backdoor listing, after which the company was renamed Chifeng Gold. At that time, Chifeng Gold was still just a regional gold enterprise, with an annual gold production of only 2.07 tons and a net profit fluctuating around 200 million yuan.

What truly transformed Chifeng Gold was the arrival of an individual in 2018.

In September 2018, Wang Jianhua, who had previously served as chairman of Shandong Gold Group and president of Zijin Mining, joined Chifeng Gold and took over as chairman in December 2019.

Wang Jianhua is a recognized veteran in China’s gold industry, born in 1956, and has led three hundred billion-level enterprises including Shandong Gold, Zijin Mining, and Yunnan Baiyao. His arrival injected a new strategic gene into Chifeng Gold. Under his push, the company’s development strategy quietly shifted from a focus on mining in 2019 to a focus on gold in 2020, with business highly concentrated on the gold sector.

At the same time, Chifeng Gold began large-scale internal technological upgrades and overseas acquisitions. Domestically, the company completed renovations of the Wulong Gold Mine in Liaoning; internationally, premium assets like the Saipan Gold-Copper Mine and Vasa Gold Mine were successively integrated into its portfolio. By 2024, Chifeng Gold’s business footprint had expanded to cover China, Southeast Asia, and West Africa, operating seven gold and multi-metal mines along with one resource recycling project.

Production also saw an explosive increase. Data shows that in 2019, the company’s gold production was merely 2.07 tons, soaring to 15.16 tons by 2024. For 2024, the company’s net profit attributable to shareholders is expected to reach 1.73 billion to 1.8 billion yuan, a year-on-year increase of more than 115%.

According to forecasts for 2025, Chifeng Gold’s annual net profit is projected to reach 3 billion to 3.2 billion yuan, a year-on-year growth of 70% to 81%, setting a new profit record for the company.

As of September 30, 2024, its gold resource reserves amounted to 12.5 million ounces, with gold production in 2023 reaching 461,500 ounces. It ranks fifth among Chinese gold producers, but its compound annual growth rate for gold production stands at 33.1%, far surpassing the industry average.

Since Wang Jianhua joined Chifeng Gold in 2018, he has propelled the company from a regional mining enterprise to a multinational giant.

The Choice of the Heir

At the peak of the stock price, Chifeng Gold was sold off, which I believe is more related to “generational inheritance.”

This issue traces back to December 11, 2021, when Chifeng Gold faced a turning point—founder Zhao Meiguang passed away at the age of 59. According to his will, all of his estate was inherited solely by his spouse, Li Jinyang, who is 21 years younger, making her the actual controller of Chifeng Gold with direct or indirect holdings of a total of 12.73% of the shares.

Additionally, one year after Zhao Meiguang’s death, his two sisters, Zhao Guixiang and Zhao Guiyuan, transferred their combined 0.26% equity in Chifeng Gold to Li Jinyang through a block trade, relinquishing all shares they held.

Based on Chifeng Gold’s A-share price of 40.82 yuan per share before suspension, Li Jinyang’s direct shareholdings correspond to a market value of approximately 7.76 billion yuan. According to the Hurun Rich List, Li Jinyang’s net worth climbed from 8.8 billion yuan in 2022 to 11 billion yuan in 2025, ranking 647th on the list.

This sudden change thrust this previously little-known woman into the spotlight. From the outset, Li Jinyang’s takeover carried a “transitional” character, which also made the acquisition traceable.

The day after Zhao Meiguang’s death, Li Jinyang promptly wrote to the Chifeng Gold board, expressing her full cooperation with the management team led by Chairman Wang Jianhua and compliance with the company’s strategic development plans. For the following years, Li Jinyang remained behind the scenes, not holding any operational position within the company nor joining the board. She entrusted the management of the business completely to the professional management team.

As of September 30, 2025, Wang Jianhua directly held 74.2001 million circulating A-shares, accounting for 3.9% of the total share capital. In 2024, his pre-tax remuneration from Chifeng Gold reached as high as 5.82 million yuan. This governance model allowed Chifeng Gold to maintain strong growth momentum even after the founder’s passing.

This “non-intervention in operations” stance also determined that Li Jinyang’s decision to exit at the opportune moment was a logical choice. As disclosed in Chifeng Gold’s announcement, Li Jinyang and her concerted party, Zhejiang Hanfeng, will “fully transfer” their holdings of 242 million A-shares to Zijin Gold—this signifies a complete and decisive exit.

According to the transaction plan, Zijin Gold will acquire Li Jinyang’s A-shares at 41.36 yuan per share, with a transaction amount of approximately 10.006 billion yuan. This price represents a premium of only 1.3% over Chifeng Gold’s A-share closing price before suspension, but for Li Jinyang, it still amounts to over 10 billion yuan in cash return. Choosing to cash out at the peak of Chifeng Gold’s performance, from an asset allocation perspective, is a rational choice.

Li Jinyang has also established her own wealth portfolio. Business registration documents show she has invested in over 30 companies, with more than 50% ownership in eight of them. Li Jinyang’s personal capital portfolio is primarily centered around Hanfeng Capital Management Co., Ltd. (hereinafter referred to as “Hanfeng Capital”). Through Hanfeng United, she holds 74% of its shares, engaging in primary market strategic investments and secondary market securities investments and asset management, as well as market value management and asset restructuring of listed companies. Hanfeng Capital’s investments span various industries including agriculture, fisheries, healthcare, entertainment, and big data.

Among them, Beijing Hanfeng United Technology Co., Ltd. is 100% owned by her, and its subsidiary Huaying Feiteng Technology Company rents office buildings to Chifeng Gold and provides property services.

Li Jinyang also directly holds 1.16% of the shares in Inner Mongolia Ningcheng Rural Commercial Bank. More notably, there are rumors that Li Jinyang has also indirectly invested in Haiguang Information through affiliated companies. As of September 30, 2025, Li Jinyang held 65.73 million shares of Haiguang Information, accounting for 2.83% of circulating shares, with a corresponding market value reaching as high as 16.6 billion yuan. This indicates that Li Jinyang’s shareholding value in Haiguang Information has surpassed her stake value in Chifeng Gold.

However, during a Q&A session with investors in March 2025, the company denied this investment matter. “After verifying with the company’s controlling shareholder, Ms. Li Jinyang, she does not hold any shares in Haiguang Information.”

From the numerous investment actions and returns, it appears that Li Jinyang’s personal wealth portfolio will further tilt toward the investment field. For Wang Jianhua, who served as president of Zijin Mining from 2013 to 2016, handing Chifeng Gold over to the old employer may also represent a sort of “fulfillment” in her personal career.

Giants Shake Hands, A Choice of the Era

If the growth of Chifeng Gold is a history of struggle for private mining, then the story of the acquirer, Zijin Mining, is a tale of evolving from a county-level small factory to a global mining giant.

Zijin Mining’s predecessor was the mining company established in 1986 in Shanghang County, Fujian Province. In 1993, the company initiated the development of the Zijinshan Gold Mine and was renamed “Shanghang County Zijin Mining Corporation,” marking the inaugural year of “Zijin Mining.” At that time, the Zijinshan Gold Mine had only 5.45 tons of proven reserves, deemed by experts as having minimal development value.

However, the entrepreneurial team led by Chen Jinghe introduced heap leaching technology to Zijinshan, shifting the mining method from underground to open-pit, facilitating rapid growth in usable resources—the gold resources leaped from 5.45 tons to over 300 tons, and copper resources increased from 1.29 million tons to over 3 million tons. The Zijinshan gold-copper mine transformed from a “chicken rib” mine to “China’s largest gold mine.”

Zijin Mining’s “five-ring integration” mining engineering management model—integrating research and full-process control of exploration, mining, beneficiation, metallurgy, and environmental protection—has become the company’s hallmark for low-cost expansion.

In 2003 and 2008, Zijin Mining was listed on the Hong Kong Stock Exchange and Shanghai Stock Exchange, achieving a transformation from industrial operations to capital operations. Leveraging capital strength, the company seized historical opportunities such as the western development strategy and revitalization of the northeast, successively acquiring assets like the Guizhou Mercury Cave Gold Mine, Xinjiang Ashele Copper-Zinc Mine, and Jilin Hunchun Gold-Copper Mine.

Since 2014, Zijin Mining has accelerated overseas counter-cyclical acquisitions—during periods of low copper and gold prices, it aggressively acquired world-class mines such as the Kamoa Copper Mine in the Democratic Republic of the Congo, Bor Copper Mine in Serbia, and Buriticá Gold Mine in Colombia. Today, Zijin Mining has developed over 30 large mining projects across 17 countries globally, with overseas gold and copper resource reserves and production exceeding half of the company’s total. The company ranks first among global gold enterprises and fourth in global metal mining enterprises in the 2025 Forbes Global 2000 list.

Zijin Mining’s move this time was quite precise. Chifeng Gold has a high proportion of overseas business—76.9% of its total gold production and 71.9% of its total revenue in 2023 came from overseas. As of September 30, 2024, about 65.2% of its total assets were derived from overseas. This aligns closely with Zijin Mining’s globalization strategy. Zijin Mining stated in its announcement that this acquisition will facilitate the integration of high-quality resources and enhance the investment value of both parties.

Zijin Mining also stated in its announcement that the company adheres to a resource-priority strategy and has actively sought merger and acquisition opportunities of high-quality listed companies in the same industry globally in recent years. The advantage of this acquisition model is that the company can leverage lower acquisition costs to cover more project resources, effectively diversifying investment risks and enhancing the level of asset securitization.

For Chifeng Gold, the entry of Zijin Mining signifies a larger platform and stronger resource support. Chifeng Gold stated in its announcement that bringing in Zijin as a strategic investor “will help support operational improvement initiatives and enhance shareholder value over time.” With the scale, technical capabilities, and operational experience of Zijin Group, the company “is expected to benefit in exploration and resource conversion, mining engineering and construction, processing and recovery optimization, and supply chain management.”