The judicial auction of the equity held by Zheng Su-zhen, the mother of the former "private equity king" Xu Xiang, in DHKJ has yielded results. The announcement released by DHKJ on August 4 shows that a total of 8 judicial auction bidders acquired shares. The average price of this judicial auction was 13.17 yuan per share, totaling 1.712 billion yuan.

Reporters from the Daily Economic News noted that among the 8 judicial auction acquirers, 7 are individuals, with the one acquiring the most shares being a mid-level cadre from Ningbo Jinhai Logistics Service Co., Ltd. Another acquirer is China New Era Limited, which holds a controlling stake in Ningbo Electronic Information Group Co., Ltd. The industries involved with Ningbo Electronic Information Group Co., Ltd. include high-performance integrated circuits, general semiconductor materials, and neodymium iron boron permanent magnetic materials.

A mid-level employee of a company spent 362 million yuan to acquire shares

On the evening of August 4, DHKJ announced that the shares held by controlling shareholder and actual controller Zheng Su-zhen had completed the judicial auction, and all acquirers were revealed.

Zheng Su-zhen held 130 million shares of the company, accounting for 29.75% of the total share capital. The acquirers of this judicial auction are Li Rongrong, Wang Xiaoping, Yang Runzhong, Fu Zeyuan, Zhou Zhengchang, Huang Li, Hua Jinzhao, and China New Era Limited, with an average auction price of 13.17 yuan per share, totaling 1.712 billion yuan.

Among them, Li Rongrong's acquired shares account for 6.29% of the company's total share capital, with a transaction price of 362 million yuan. Li Rongrong is also the only shareholder among the judicial auction acquirers with a holding ratio exceeding 5%.

As a result, DHKJ disclosed Li Rongrong's personal information, noting that since 2018, she has served as a mid-level cadre at Ningbo Jinhai Logistics Service Co., Ltd., whose main business is corporate services.

Li Rongrong stated that based on her recognition of the long-term investment value of the listed company and confidence in its future development prospects, she legally acquired shares of the listed company through participation in the judicial auction. She has no plans to increase or decrease her equity in the listed company within the next 12 months. According to Tianyancha, the sole shareholder of Ningbo Jinhai Logistics Service Co., Ltd. is the Ningbo Customs Logistics Management Center.

The shareholding ratio of China New Era Limited is second only to Li Rongrong, with a post-auction holding ratio of 4.12% and a transaction price of 237 million yuan. According to Tianyancha, it owns multiple assets including real estate, catering, and golf clubs. Notably, China New Era Limited holds 82.82% of the equity in Ningbo Electronic Information Group Co., Ltd According to the official website of Ningbo Electronic Information Group Co., Ltd., the company directly or indirectly holds shares in more than 60 enterprises, including Zhongke Industrial Group, Beijing Zhongguancun Science City, Dongyuan Venture Capital, Yongxin Optics, and Zhongning Silicon Industry. The industries involved include high-performance integrated circuits, general semiconductor materials, neodymium iron boron permanent magnetic materials, new energy inverters, LED packaging testing applications, and more. Among the invested enterprises, those that have been cultivated and listed include Zhongke Sanhuan, Zhongke Environmental Protection, and Yongxin Optics.

This equity auction premium exceeds 60%

After this judicial auction, Zheng Su-zhen's shareholding will also become "0". The reason why this judicial auction of DHKJ has attracted significant attention is that Zheng Su-zhen is the mother of the former "private equity king" Xu Xiang.

Xu Xiang Image source: Xinhua News Agency

This judicial auction dates back to the end of December 2024, when DHKJ announced that it had received an enforcement ruling from the Intermediate People's Court of Qingdao, Shandong Province, which ruled to auction the 130 million unrestricted circulating shares of DHKJ held by Zheng Su-zhen. On June 20, 2025, DHKJ received the "Auction Notice" from the Qingdao Intermediate People's Court, stating that the 130 million shares held by Zheng Su-zhen would be auctioned in July at the Shandong Property Rights Trading Center.

The reporter noted that the Shandong Property Rights Trading Center issued a transaction announcement on July 30, stating that the listing price for the aforementioned 130 million shares of DHKJ was 1.068 billion yuan, and the transaction price was 1.712 billion yuan. If calculated based on the listing price, the premium rate for this judicial auction exceeds 60%.

Recently, DHKJ's stock price has also shown strong momentum, rising sharply to 13.2 yuan per share, which is very close to the auction price.

DHKJ previously disclosed its performance forecast for the first half of 2025, estimating a net loss attributable to the parent company of 4.06 million yuan and a net loss attributable to the parent company after deducting non-recurring gains and losses of 3.46 million yuan. DHKJ stated that during the reporting period, due to intensified industry market competition and changes in supply and demand, the profitability of the company's products has decreased, and the overall gross profit margin has declined.

Daily Economic News, original title: "Judicial auction premium exceeds 60%! Former 'private equity king' Xu Xiang's mother clears her shares in this A-share company! A mid-level cadre from a unit under Ningbo Customs spent 362 million yuan to buy 6.29% of the shares."

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