Looking back at 2024 to 2025, $XXF(02473.HK) underwent a profound transformation in the capital market. The market once focused on the share reduction actions of early shareholders like Tengxintou, but often overlooked the underlying logic of capital relay behind it. This was not a simple capital exit, but an optimization of the equity structure completed through off-exchange agreement transfers. With the entry of institutions like CMB International, Xixiangfeng is transitioning from being purely driven by financial investments to a new development stage with deep industrial resources and significant strategic synergies.

1. Is the Major Shareholder's Share Reduction a Negative Signal or a Strategic Reshuffle?

Reviewing the equity changes from July to September 2024, although shareholders like Tengxintou and Yang Huiqiong cumulatively reduced their holdings by about 14%, with an additional off-exchange reduction of over 200 million shares, this was actually a "replacement of the old with the new." All these transactions were completed through over-the-counter (OTC) agreements, minimizing the impact on the secondary market. More importantly, the introduction of strategic shareholders followed closely—CMB International became a key shareholder with a 12.35% stake by taking over shares. This move marked the company's smooth transition from early-stage financial investors to long-term strategic partners with strong industrial backgrounds, establishing an upgraded "top-level design" at the equity level.

2. How Does the Capital Structure Upgrade Empower Business Growth Momentum?

The optimization of the equity structure directly unleashed strong growth momentum. With the support of core strategic partners, Xixiangfeng's performance did not fluctuate due to the share reduction but instead achieved leapfrog growth. According to the company's 2024 annual report, its new retail auto sales business surged 22-fold in 2024, becoming the core engine; revenue and net profit continued to grow at double-digit rates in the first half of 2025. Additionally, the company quickly implemented in-depth strategic collaborations with mainstream automakers like Dongfeng Fengshen, FAW Hongqi, and Geely Auto. This "capital + industry" dual-drive model proves that the new shareholders brought not just capital but also supply chain integration capabilities and accelerated business expansion.

3. Where Are the Long-Term Valuation Drivers Under the New Strategy?

Looking ahead, Xixiangfeng's valuation logic is being restructured. First, the company's successful inclusion in the Stock Connect program increased liquidity, with southbound capital inflows providing strong valuation support. The nearly 10-fold stock price increase over the past year is a positive market response to this change. Second, the company has taken concrete steps in its overseas expansion strategy, opening direct stores in Uzbekistan, unlocking global growth potential. Furthermore, the company has proactively laid out plans for low-altitude economy and drone operations. These diversified strategic initiatives, combined with market recognition, collectively build a channel for the company's long-term value appreciation.

Conclusion

In summary, Xixiangfeng's equity changes essentially represent a successful strategic upgrade. By smoothly addressing the exit pressure from early shareholders and introducing strong institutions like CMB International, the company has successfully achieved resource replacement and momentum transformation. Looking forward, with the explosion of new retail business, overseas market expansion, and the liquidity dividends from the Stock Connect program, Xixiangfeng has developed the core competitiveness to navigate cycles and sustain upward growth. Particularly, its "central store + light-asset service points" model enables rapid network deployment in lower-tier markets, forming a competitive advantage that is difficult to replicate, with over 6,000 partner stores currently in place.