Trading in A-shares and H-shares of Chifeng Gold (600988.SH, 06693.HK), with a total market capitalization of 77.575 billion yuan, was simultaneously halted on the morning of March 19th.

A Hong Kong Stock Exchange announcement indicated that trading in the company's H-shares was suspended starting at 9:00 a.m. that day, pending the disclosure of information related to the potential sale of shares by the single largest shareholder.

Shortly before this, Chifeng Gold also issued an announcement on the A-share market stating that the company is planning a change in control. Trading in its shares was suspended from the market open on March 19th, with the suspension expected to last no more than five trading days.

The timing of this event is particularly noteworthy: it coincides with a potential change in control on one hand, and the imminent release of the company's 2025 financial results and dividend discussion on the other.

Behind the trading halt, the market's focus has swiftly shifted from earnings growth to the question of who will take over the company.

The central figure in this potential change of control is Li Jinyang, the current actual controller of Chifeng Gold.

The announcement revealed that on the evening of March 18, 2026, Chifeng Gold received notification from its controlling shareholder and actual controller, Li Jinyang, that she and parties acting in concert are planning to transfer their holdings in the company. This matter could lead to a change in the company's actual controller.

Chifeng Gold stated that the aforementioned matter is under negotiation and remains uncertain.

If the transaction proceeds, it would mark the most significant transfer of power at Chifeng Gold in over a decade.

Li Jinyang is not a typical founder-type controller. She is more widely known to the public as the widow of Zhao Meiguang, the founder of Chifeng Gold.

Detailed information about Zhao Meiguang's entrepreneurial history is scarce online, but his status as a wealthy individual is well-known.

In the Forbes rich list published in April 2021, Zhao Meiguang was ranked 2674th with a fortune of $1 billion.

Zhao Meiguang passed away due to illness in December 2021 at the age of 59.

According to his will, all assets under his name were inherited by his spouse, Li Jinyang.

Following the completion of the inheritance procedures, control of Chifeng Gold was transferred to this woman from Jilin, who was only 38 years old at the time.

Unlike many cases where successors immediately take on active roles, Li Jinyang has maintained a relatively low profile since assuming control and has not held any specific position within the company.

Day-to-day operations continue to be led by professional managers and the management team.

Notably, subtle signals had emerged in the market shortly before the trading halt.

In early March, Li Jinyang arranged for an extension of the repurchase period for some of her pledged shares, extending the pledge originally set to expire on March 3, 2026, by one year.

While such maneuvers are not uncommon in themselves, against the backdrop of a planned control transfer, they are inevitably interpreted by the market as creating room for the transaction.

As of March 4, 2026, Li Jinyang and parties acting in concert, specifically Zhejiang Hanfeng Venture Capital Partnership, collectively held approximately 12.73% of Chifeng Gold's shares.

Concurrently, 3.27% of the company's shares were pledged by Li Jinyang and Hanfeng Venture Capital.

Having held control of Chifeng Gold for four years, why has Li Jinyang chosen to transfer control now?

From an external perspective, gold prices have surged over the past year, leading to a significant improvement in profitability across the industry.

From the company's own standpoint, Chifeng Gold is at a peak in its performance, with net profit for 2025 projected to increase by approximately 70% to 81% year-on-year.

Choosing to transfer control at a cyclical high could represent a window to realize asset value, but it may also signal a shift in the existing shareholders' outlook on the company's next phase of development.

To some extent, this represents a classic pro-cyclical exit.

For the capital markets, however, the greater suspense lies in the identity of the acquirer. Will it be industrial capital seeking further consolidation, or financial capital entering the scene?

The answer will determine the future development path of Chifeng Gold.

To grasp the significance of this potential change in control, one must look back at the origins of Chifeng Gold.

This company was not always involved with gold.

Its predecessor was Guangzhou Baolong Special Purpose Vehicle Co., Ltd., established in 1998, abbreviated as "Eastern Baolong."

In April 2004, Eastern Baolong was listed on the Shanghai Stock Exchange.

However, in the following years, the company's operations continued to struggle. After reporting consecutive losses in 2008 and 2009, Eastern Baolong was again placed under delisting risk warning, becoming "*ST Baolong."

Zhao Meiguang, a Jilin native involved in the mining business in Chifeng, saw the shell value in this poorly performing company.

By the end of 2012, the company completed a major asset restructuring, injecting 100% of the equity of Chifeng Jilong Mining Industry Co., Ltd., controlled by Zhao Meiguang, into the listed company.

This transaction was, in essence, a typical backdoor listing. Following the asset restructuring, the company's main business pivoted entirely to gold mining, processing, and sales, and it was officially renamed Chifeng Gold.

From that point on, the company embarked on a typical expansion path for a resource-based enterprise: acquiring mines, expanding production, and going global.

Today, the company's business spans three major regions: China, Southeast Asia, and West Africa, operating 7 gold and polymetallic mines globally, along with one resource comprehensive recycling project.

Within the industry, Chifeng Gold has grown into one of China's largest privately-owned gold producers.

At the management level, the company has undergone several transitions.

In February 2016, after serving as Chairman of Chifeng Gold for over three years, Zhao Meiguang resigned, and professional manager Lü Xiaozhao took over the role.

In December 2019, Wang Jianhua, former Chairman of Shandong Gold Group and former President of Zijin Mining (02899.HK), assumed the position of Chairman at Chifeng Gold, further strengthening the company's professional operational capabilities.

It is worth noting that in November 2020, Zhao Meiguang transferred 98.17 million shares of Chifeng Gold to the then 64-year-old Wang Jianhua for a total consideration of 1.669 billion yuan.

Financially, Chifeng Gold's growth trajectory has been clear and steep.

In 2013, the company's revenue was only 582 million yuan; by 2015, it had grown to 1.591 billion yuan; and in 2021, it reached 3.783 billion yuan.

From 2022 to 2024, the company's revenues were 6.267 billion yuan, 7.221 billion yuan, and 9.026 billion yuan respectively, while net profit climbed rapidly from 451 million yuan to 1.764 billion yuan.

Entering 2025, performance continued to grow. The company forecasts full-year net profit between 3.0 billion and 3.2 billion yuan, with adjusted net profit between 2.97 billion and 3.17 billion yuan.

Chifeng Gold disclosed that its primary gold production for 2025 was approximately 14.4 tons, with the average selling price of its primary gold products increasing by about 49% year-on-year, and profitability strengthening at both domestic and international mining operations.

In March 2025, Chifeng Gold successfully listed on the Hong Kong Stock Exchange, becoming the third "A+H" dual-listed gold enterprise in China.

The suspense surrounding the transfer of control is pushing Chifeng Gold towards a critical juncture.

On one side lies the capital framework and cyclical benefits left behind by the founder; on the other, the potential for strategic reshaping and path adjustment brought by a new entrant.

Against the backdrop of high gold prices and robust earnings growth, the control transfer transaction resembles both a timely realization of value and a potential starting point for a new round of expansion.

For the market, what truly warrants attention is not only who takes over but also whether this privately-owned mining company, which rose through acquisitions, will embark on a fundamentally different development path post-acquisition.