On September 9, Fubon Capital Holdings (01911.HK), which had been suspended for nearly a year and a half, resumed trading today, falling more than 60% at one point. As of the time of writing, it has fallen 59.57% to HK$2.91.

It is worth noting that the current market cap of CR Holdings has dropped to HK$1.654 billion, compared to HK$4.129 billion when it was suspended, resulting in a market cap evaporation of HK$2.475 billion.

Founder's wife appointed as non-executive director and related members announced a lock-up commitment

According to the announcement on September 6, Xu Yanqing, the wife of CR Holdings' founder and chairman Bao Fan, was appointed as a non-executive director of the company.

On the same day, four executive directors of CR Holdings have individually committed to not selling any company shares and equity from September 8, 2024 to March 7, 2025.

Why was CR Holdings suspended for such a long time?

The suspension of CR Holdings is related to the incident where its founder, Bao Fan, went missing. In February 2023, Bao Fan was reported missing and the company later confirmed that he was assisting relevant authorities in China with their investigation. This incident has affected the company's operations and financial condition, leading to the auditors being unable to complete the audit work and issue an audit report, triggering the suspension mechanism. CR Holdings has been suspended from trading on the Hong Kong Stock Exchange since April 3, 2023.

CR Holdings has undergone a series of adjustments and reforms, including changes in senior management and the issuance of financial reports. On September 6, 2024, CR Holdings announced that it has fulfilled all the requirements of the Hong Kong Stock Exchange's resumption of trading guidance and has applied to the Hong Kong Stock Exchange to resume trading from 9:00 a.m. on September 9, 2024.

How has CR Holdings performed recently?

According to the performance in the first half of 2024, cr holdings' total revenue was 0.329 billion yuan, a decrease of 38.7% year-on-year. The company's attributable net loss was 73.822 million yuan, narrowing the loss year-on-year. Specifically, the revenue of the three major sectors, investment banking, investment management, and cr securities, decreased by 13.5%, 57.10%, and 13.60% respectively, totaling a 40.4% decrease.

The investment management business of CR Holdings is the main source of its revenue, accounting for 37% of the total revenue of the company. In the first half of 2024, the management fee income of this business decreased by 32% compared to the same period last year, to 0.155 billion yuan. This reduction is mainly due to the distribution of funds from the second half of 2023 to the first half of 2024, resulting in a reduction in the asset size generating management fees.