Huayun Gold Leasing's equity is auctioned again with no bids; significant discounts still go unnoticed

(Source: Economic Information Daily)

The financial leasing industry’s equity auction has once again cooled off. Recently, the 21% equity stake in Huayun Financial Leasing Co., Ltd. (referred to as “Huayun Leasing”) held by Taifu Heavy Equipment Group was publicly auctioned again and ended without bidders. Since then, Huayun Leasing’s equity has been placed on the “shelf” three times this year, totaling five times overall. Meanwhile, the starting bid has been repeatedly lowered, from the initial 386.3 million yuan to this time’s 200 million yuan.

In response, industry experts stated that the difficulty in transferring equity in leasing companies reflects the current industry situation. Small and medium-sized leasing companies should actively adjust their business structures under compliance requirements, leverage their own characteristics, identify niche areas to refine and deepen, develop specialized features, and only then can they achieve steady and sustainable growth.

21% equity stake auctioned off for the third time this year

A reporter logged into the JD Asset Trading Platform and found that by the last day of Huayun Leasing’s equity auction, at 10 a.m. on March 19, there were zero registrations, two followers, and 463 viewers. “The target has been withdrawn, but expressions of interest can still be submitted for purchase,” a note still prominently displayed on the platform.

In fact, as early as December 2020, the 21% equity stake in Huayun Leasing held by Taifu Heavy Equipment Group was listed for auction twice on the JD Asset Trading Platform, with starting prices of approximately 386.3 million yuan and 309 million yuan, respectively, but both ended without bids. In mid-February and early March this year, the same equity was again listed for auction, with initial prices of 300 million yuan and 240 million yuan, respectively, and recently lowered to 200 million yuan for the third auction this year. However, until the end, no one registered.

The reporter found that, unlike previous auctions, the auction announcement this year clearly states that six related companies, including Taifu Heavy Equipment Group, have entered bankruptcy proceedings. The auction is managed by the administrators of these six related companies, supervised by the Xiangtan Intermediate People’s Court.

Additionally, the administrators do not have full knowledge of Huayun Leasing’s actual operations and assets and liabilities, nor do they know whether the company currently has employees or assets; they are unaware of the actual use of Huayun Leasing’s business premises or registered address, and buyers should verify this themselves. Besides the financial statements (electronic data) of Huayun Leasing up to the end of 2025, the administrators also do not possess items or documents related to the 21% equity, including but not limited to the equity contribution agreement, proof of contribution, equity ownership documents, business license, or assets of the target company.

However, the auction notice states that, according to the “Enterprise Credit Information Publicity Report,” the 21% equity held by Taifu Heavy Equipment Group in Huayun Leasing is unpledged and not under effective freeze, and the corresponding registered capital has been fully paid.

From a hundred-billion-yuan asset scale to a 99.15% non-performing loan rate

Public information shows that Huayun Leasing is China’s first financial leasing company initiated and established by private manufacturing shareholders, with purely private capital background. Among its shareholders, Taifu Heavy Equipment Group holds 21%, making it the second-largest shareholder. According to its official website, Huayun Leasing was established in April 2015, with its registered office in Tianjin Free Trade Zone, and an initial registered capital of 1 billion yuan. In 2017, the company introduced strategic investors, increasing registered capital to 1.43B yuan. Huaxun Ark Group subscribed to all the new shares, holding 30%, making it the largest shareholder; Taifu Heavy Equipment Group and Xiehe Wind Power Investment Co., Ltd. are the second-largest shareholders, each holding 21%.

As a purely private-capital-backed financial leasing company, Huayun Leasing initially chose a traditional path, mainly engaging in credit-like business, with asset structures primarily based on government credit platforms, once surpassing 100 billion yuan in assets. In early 2018, the company sought transformation, continuously reducing its assets, with total assets dropping from 4.5 billion yuan at the end of 2020 to within 2 billion yuan by the end of July 2023.

Notably, when Huaxun Ark Group’s 30% stake in Huayun Leasing was auctioned in November 2023, the valuation report indicated that as of July that year, Huayun Leasing’s leasing balance was about 2.25 billion yuan, including 18 risky project assets, with a non-performing loan rate as high as 99.15%. Additionally, the company’s net losses in 2021 and 2022 were approximately 235 million yuan and 454 million yuan, respectively.

According to related reports, to further help Huayun Leasing resolve difficulties, local governments and regulatory authorities have provided strong support for risk mitigation and strategic investment. For example, the Tianjin Port Free Trade Zone Management Committee actively coordinated with local courts to promote the quick disposal of non-performing projects and accelerate recoveries, maintained a positive attitude toward issues like relocation concerns raised by potential investors, and fully supported Huayun Leasing’s strategic investments and non-performing asset disposal.

Industry segmentation in the leasing sector intensifies

In fact, the cold reception of Huayun Leasing’s equity auction is just a “microcosm” of the industry’s recent situation. Wind data shows that since 2025, the equity of more than ten companies, including Huarong Leasing, Aerospace Leasing, and Minsheng Leasing, has been transferred or auctioned off. However, many of these leasing companies’ equity transfer transactions have not been very successful. For example, the 632 million shares of Minsheng Leasing held by Beijing Dayi Xingye Real Estate Development Co., Ltd. were auctioned twice last year, with the second auction price lower than the first, but both ended without bidders.

“Since last year, the equity of leasing companies transferred can roughly be divided into two categories: one is court-forced auctions, and the other is voluntary sales by equity holders through listing,” said an industry expert. He explained that equity holders who enter bankruptcy due to poor management often have their holdings judicially disposed of. Those who sell their leasing company equity through listing are usually doing so to meet regulatory requirements, as regulations stipulate that central enterprises and state-owned enterprises should focus on core businesses and gradually exit their holdings in financial institutions.

It is worth noting that in October 2023, the China Banking and Insurance Regulatory Commission issued the “Notice on Promoting Standardized Operations and Compliance Management of Financial Leasing Companies,” which clearly states the goal of optimizing leasing business structures and achieving at least 50% of new direct leasing business annually by 2026. Furthermore, the “Regulations on the Administration of Financial Leasing Companies,” which came into effect in November 2024, require a minimum registered capital of 1 billion yuan and raise the shareholding requirement for main sponsors from 30% to no less than 51% to enhance risk resistance.

The reporter learned that various leasing companies are increasing their direct leasing business, but due to intense competition for high-quality direct leasing projects, leading leasing companies have advantages, while small and medium-sized leasing firms face difficulties expanding their business. This further intensifies industry segmentation and may lead to issues related to compliance and risk control.

In response, a joint credit research report stated that under the regulatory requirement to increase direct leasing share, large leasing companies with stronger competitiveness and resource endowments are more capable of developing related businesses to meet regulatory demands. Small and medium-sized leasing companies find it difficult to enter fields like aircraft and ships, so to achieve operational goals, they are increasing competition in existing markets for direct leasing and shifting focus to areas with lower entry barriers, such as photovoltaic power stations. This has led to changes in their business structures and customer bases, raising concerns about compliance and risk management during their business transformation.