CICC-affiliated entities enter the scene! *ST Huicheng undergoes restructuring to welcome change: Industry investors increase their stakes, and the largest financial investor has just been established

What is the deeper meaning behind AI · Shanyuan Runhe being founded just one day before investment?

This article is sourced from Times Weekly. Authors: Zhou Songqing, Han Xun

*ST Huicheng (002168.SZ) restructuring plan has changed.

On the evening of April 1, *ST Huicheng released an announcement, signing a restructuring financial investment agreement and a supplementary agreement to the restructuring investment agreement.

Because the transfer of capital reserve shares changed from 10-for-4.8 shares to 10-for-6.42049 shares, and the industrial investor Zhien Biological Technology Co., Ltd. (hereinafter referred to as “Zhien Biological”) held less than 20%, Zhien Biological made an additional investment of 52.44 million yuan to maintain a 20% stake.

Source: TuChong

At the same time, Zhien Biological designated two newly added financial investors: one is CICC Pucheng Investment Co., Ltd. (hereinafter referred to as “CICC Pucheng”), which is controlled by China International Capital Corporation; the other is Chongqing Shanyuan Runhe Private Equity Investment Fund Partnership (Limited Partnership) (hereinafter referred to as “Shanyuan Runhe”), a private equity fund partnership established only on March 31. Shanyuan Runhe is currently the largest financial investor in the restructuring of *ST Huicheng.

Regarding the reasons for the changes to the restructuring plan, on the afternoon of April 2, an official from the office of the Secretary of the Board of *ST Huicheng told Times Weekly reporters that this is because the creditor Chongqing Lvfaa Asset Operation and Management Co., Ltd. (hereinafter referred to as “Chongqing Lvfaa”) waived part of its debts, and Zhien Biological donated 30 million yuan. In the 2025 annual report, capital reserve increased; therefore, shares would be transferred based on the capital reserve, which also increased year over year.

Zhien Biological adds an investment of 52.44 million yuan

Nearly 8 months after promoting the restructuring, *ST Huicheng has seen an adjustment to its plan.

On August 4, 2025, citing that *ST Huicheng “cannot repay due debts and clearly lacks repayment capability, but has restructuring value,” the creditor Chongqing Lvfaa applied to the Fifth Intermediate People’s Court of Chongqing to initiate a pre-restructuring process for *ST Huicheng. In September 2025, Zhien Biological was selected as the restructuring industrial investor of *ST Huicheng and signed the “Restructuring Investment Agreement.”

Under the original plan, *ST Huicheng intended to implement a transfer of capital reserve shares with total share capital of 784,163,368 shares as the base, increasing by about 4.8 shares for every 10 shares, for a total of 373,471,302 shares to be transferred. Zhien Biological would subscribe for 232 million shares at 1.735 yuan per share, which equals 50% of the average trading price of *ST Huicheng’s stock over the 120 trading days before the signing date, representing a 20.04% shareholding and an investment amount of about 403 million yuan. In the restructuring investment agreement, Zhien Biological also promised that it could provide liquidity support of no more than 70 million yuan to *ST Huicheng, ensuring stable operations of the listed company.

Meanwhile, Zhien Biological designated four financial investors: subscribing for 57 million shares at 1.835 yuan per share; Chongqing Lizhu Enterprise Management Center (Limited Partnership) subscribing for 27 million shares at 49,545,000 yuan; Chongqing Chuangying Zhida Pharmaceutical Information Consulting Partnership (Limited Partnership) subscribing for 10 million shares at 18.35 million yuan; Chongqing Shouyi Pharmaceutical Information Consulting Partnership (Limited Partnership) subscribing for 10 million shares at 18.35 million yuan; and Chongqing Qili Sanhe Biopharmaceutical Technology Partnership (Limited Partnership) subscribing for 10 million shares at 18.35 million yuan.

On September 30, 2025, to support the healthy and orderly development of *ST Huicheng, ease debt pressure, and improve its asset structure, Chongqing Lvfaa voluntarily waived 130 million yuan in debts; on December 30, 2025, Zhien Biological donated 30 million yuan in cash to *ST Huicheng free of charge.

Due to the debt waiver and the capital donation, *ST Huicheng’s capital reserve in the 2025 annual report increased from 357 million yuan at the beginning of the year to 517 million yuan at year-end.

According to the 2025 Annual Audit Report issued by Daxin Certified Public Accountants (Special General Partnership), as of December 31, 2025, the total share capital of *ST Huicheng was 784,163,368 shares, and the parent company’s capital reserve was 533,471,302.22 yuan. This restructuring implemented a transfer of capital reserve shares at a ratio of 6.42049 shares for every 10 shares, for a total transfer of 503,471,302 shares. After the transfer, the company’s total share capital changed to 1,287,634,670 shares (the final exact number of transferred shares will be subject to the number actually registered and confirmed by China Securities Depository and Clearing Corporation Shenzhen Branch).

Because the number of shares transferred increased, resulting in an increase in the total share capital of *ST Huicheng, to keep Zhien Biological’s controlling position stable after the restructuring, both parties agreed that Zhien Biological would further subscribe for 26,053,124 shares of Huicheng Technology that were to be transferred, keeping its shareholding at approximately 20.04% in *ST Huicheng unchanged. Zhien Biological subscribed for a total of 258,053,124 transferred shares of *ST Huicheng, with an investment amount of about 455 million yuan.

An official from the office of the Secretary of the Board of *ST Huicheng told Times Weekly reporters that because of the change in the capital reserve, after communicating with the industrial investors and adjusting based on the latest data, to maintain control, Zhien Biological provided an investment of 52.44 million yuan. It subscribed for 26.05 million shares at the price of 2.0131 yuan per share, which is the average price over the first 20 trading days of *ST Huicheng.

According to Article 8 of the “Guidelines for the Supervision of Listed Companies No. 11 — Matters Related to Bankruptcy Restructuring of Listed Companies,” the price at which a restructuring investor obtains shares shall not be lower than 50% of the market reference price. The market reference price is one of the average trading prices of the company’s shares over 20, 60, or 120 trading days prior to the signing date of the restructuring investment agreement.

Regarding why the average price over 20 trading days was chosen, an official from the office of the Secretary of the Board of *ST Huicheng told Times Weekly reporters that this is also a consideration of Zhien Biological itself.

Largest financial investor enters on the day of establishment

In this adjustment to the restructuring plan, Zhien Biological also designated two additional financial investors, both of whom subscribed at a price of 2.0131 yuan per share. CICC Pucheng subscribed for 12 million shares for 24.1572 million yuan, and Shanyuan Runhe subscribed for 10241.82 million shares for 20617.80 million yuan.

Times Weekly noticed that Shanyuan Runhe was established only one day before April 1, when the contract was signed. Coincidentally, among the four financial investors that entered in September 2025, they were also newly established companies.

The restructuring announcement shows that Shanyuan Runhe was established on March 31, 2026, with a capital contribution of 130 million yuan. Its partners include Chongqing Shanyou Herun Enterprise Management Consulting Partnership (Limited Partnership) (capital contribution 1.3 million), Chongqing Yuanrun Biotechnology Co., Ltd. (capital contribution 1.3 million), and Chongqing Xiangqirui Biotechnology Co., Ltd. (capital contribution 127.4 million). The actual controller of Shanyuan Runhe is Chen Yingjiu.

The announcement shows that Yuanrun Biological is the executive partner of Chongqing Lizhu Enterprise Management Center (Limited Partnership), the restructuring financial investor of *ST Huicheng. In other words, Shanyuan Runhe has a certain connection with the previous batch of restructuring financial investors.

According to Tianyancha, companies under Chen Yingjiu include YouShan Venture Capital Fund Management (Shenzhen) Co., Ltd. (hereinafter referred to as “YouShan Capital”), Shenzhen Youyue Consulting Partnership, Hainan Youyi Venture Capital Partnership, and other investment entities.

The official website of YouShan Capital shows that the company was established in 2020. Currently, it manages a total scale of 132 billion yuan in direct investment funds and local industry funds. It focuses on early-to-mid-stage and growth-stage enterprises in technology-enabled industries such as high-end equipment manufacturing, new energy new materials, medical and healthcare, artificial intelligence, and more. Its partners mainly come from CICC.

An official from the office of the Secretary of the Board of *ST Huicheng told Times Weekly reporters that the financial investors are all designated by Zhien Biological, and they are essentially financial investors.

*ST Huicheng was established in 1999, and its business involves the biopharmaceutical sector, power transmission and distribution equipment, the new energy vehicle charging pile business sector, and the photovoltaic wind power EPC sector. In 2025, the company achieved operating revenue of 369.1 million yuan, up 87.16% year over year, and recorded a net loss of 79.02 million yuan, compared with a loss of 150 million yuan in the same period last year. After releasing the annual report, *ST Huicheng applied to the Shenzhen Stock Exchange to revoke the delisting risk warning for its stock.

An official from the office of the Secretary of the Board of *ST Huicheng told Times Weekly reporters that whether the delisting risk warning will be revoked still needs to wait for the Shenzhen Stock Exchange’s review.