On the morning of September 9th, the Hong Kong stock market weakened due to the influence of overseas markets. Among individual stocks, Evergrande Property and HuaXing Capital Holdings both fell by more than 60%.

On September 3rd, Evergrande Property released an announcement disclosing its unaudited sales data for the period from January to August 2024. The announcement showed that in the first eight months of this year, Evergrande Property and its subsidiaries, along with its joint ventures and associated companies, had a contract sales amount of approximately 25.91 billion yuan, with a sold building area of about 2.307 million square meters.

The previously released semi-annual report indicated that in the first half of this year, Evergrande Property achieved a revenue of 25.134 billion yuan, a decrease of 30.83% year-on-year; the gross profit was about 2.321 billion yuan, a decrease of 51.6% year-on-year; the profit attributable to the owners of the company was about 376 million yuan, a decrease of 51.94% year-on-year; the core net profit attributable to the owners of the company decreased by 51.1% to about 419 million yuan.

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On September 5th, Evergrande Property announced that its indirect wholly-owned subsidiary, Evergrande Property Group, publicly issued 1.4 billion yuan in medium-term notes.

Further back, the restructuring plan of Evergrande Property was approved. According to the announcement released by Evergrande Property, the company will undergo a shareholding restructuring, reorganizing the real estate development business rights owned wholly by the listed company to the controlling shareholder. After the restructuring plan is approved, the related transactions will be officially completed on October 22nd.

Evergrande Property stated that this restructuring explores a new model of listed company restructuring that does not affect the management and operation, and the full-chain development management of the real estate assets held by the controlling shareholder will continue to be undertaken by the existing management team.

The listed company after the restructuring will focus on operational businesses, carrying out businesses around property management, commercial management, intelligentization, prefabricated construction, and interior decoration, as well as undertaking the full-chain development management of the real estate assets held by the controlling shareholder.

In addition, HuaXing Capital Holdings, which has been suspended for nearly a year and a half, resumed trading today and fell by more than 70% at one point. As of the time of writing, the drop was 63.96%, with the stock price at 2.62 Hong Kong dollars per share.

The suspension of the stock is related to the disappearance of its founder, Bao Fan: In February 2023, Bao Fan was reported to have disappeared, and the company later confirmed that Bao Fan was cooperating with the investigation by relevant Chinese authorities. This incident affected the company's operations and financial conditions, leading to the auditors being unable to complete the audit work and issue the audit report, thereby triggering the suspension mechanism. HuaXing Capital has been suspended from trading on the Hong Kong Stock Exchange since April 3, 2023.

On September 6th, HuaXing Capital announced that the company's founder and chairman, Bao Fan's wife, Xu Yanqing, was appointed as a non-executive director of the company, and the stock resumed trading on September 9th.In terms of performance, in the first half of 2024, HuaXing Capital's total revenue was 329 million yuan, a year-on-year decrease of 38.7%. The company's attributable loss to owners was 73.822 million yuan, with the loss narrowing compared to the same period last year.

Specifically, HuaXing Capital's investment management business is the main source of its revenue, accounting for 37% of the company's total revenue. In the first half of 2024, the management fee income of this business decreased by 32% compared to the same period last year, falling to 155 million yuan.