After surging over 200% in just over three months, the stock price subsequently plummeted. The company proposed a $100 million share buyback, only to be flagged by the Hong Kong Securities and Futures Commission for high shareholding concentration. Today (September 19), the stock price fell by more than 55%. What exactly has market darling CSFG-NEW (00412.HK) been experiencing recently?
Prior to May this year, CSFG-NEW's stock price performance was relatively subdued. However, starting from May 20, the company's share price began to soar, climbing from HK$5.5 per share all the way to a peak of HK$18.95 on August 19 - more than tripling in just three months. But on September 16, CSFG-NEW's stock price suddenly dropped 24.22%, forming a stark contrast to its previous strong momentum.
Facing significant stock price volatility, CSFG-NEW immediately issued an announcement stating it was unaware of the reasons behind the abnormal price and trading volume movements, and decided to conduct share repurchases in the open market. The company planned to repurchase shares at prices not exceeding HK$17 per share, with a total repurchase amount not exceeding $100 million. Following the company's announcement of the share buyback, CSFG-NEW's stock price immediately surged 17.37% on September 17.
However, the good times didn't last long. On September 18, the Hong Kong Securities and Futures Commission suddenly issued a notice about high shareholding concentration, which would once again impact CSFG-NEW's stock price. The SFC stated that as of September 1, 2025, 20 shareholders collectively held approximately 1.445 billion shares of the company, equivalent to 24% of the company's issued share capital. Together with approximately 4.121 billion shares (representing 68.46% of issued share capital) held by two major shareholders of the company, this represents 92.46% of the company's issued share capital. Therefore, only 454 million shares (7.54% of issued share capital) of CSFG-NEW are held by other shareholders.
Although CSFG-NEW promptly issued an announcement responding: "The Company confirms that as at 1 September 2025 and the date of this announcement, at least 25% of the Company's issued shares are held by the public and the Company is able to comply with the public float requirements under the Listing Rules of the Stock Exchange." However, today CSFG-NEW's stock price still opened low and continued to decline, with the stock price falling significantly by more than 55%.
According to CSFG-NEW's official website, the company is an important overseas investment and financing platform and emerging industry holding platform of Shandong Hi-Speed Group, with main businesses covering industrial investment and licensed financial services. Currently, the company controls SDHS NEW ENERGY (01250.HK), is the single largest shareholder of Shandong High Speed Renewable Energy Group Limited (000803.SZ), and owns 42% of the shares of US-listed company VNET Group (VNET). CSFG-NEW promotes synergy between its green energy and data center industries, building a new business model that integrates "energy + computing power" and creating core competitiveness in industrial investment and operations. Based on the latest stock price, CSFG-NEW still has a market capitalization of nearly HK$40 billion and is included in the Stock Connect scheme.
In the first half of 2025, CSFG-NEW recorded revenue of RMB 2.503 billion and profit of RMB 476 million.
In its business review for the first half of this year, CSFG-NEW stated that in terms of investment strategy, the group continued to fully empower digital computing ecosystem enterprises and support their rapid business development on one hand, while accelerating the implementation of the "integrated digital computing" strategy on the other. During the reporting period, affected by market volatility, CSFG-NEW's standardized investment business recorded a profit of approximately RMB 508 million at fair value, compared to a loss of approximately RMB 28 million in the same period last year.
Additionally, CSFG-NEW currently holds licenses for Type 1, 4, 5, 6, and 9 regulated activities under the Securities and Futures Ordinance issued by the Hong Kong Securities and Futures Commission, as well as a Hong Kong money lender's license, and holds licenses in mainland China including Qualified Foreign Limited Partner (QFLP) fund manager and financial leasing licenses. The company serves corporate and individual clients in mainland China, Hong Kong, and globally, providing comprehensive financial services related to cross-border investment and financing needs between mainland China and Hong Kong.