More than three months ago, on January 7th, Lin Zhong, Chairman of CIFI Group, and Huang Haitao, Chairman of Guangxi Zhangtai Group, each held a red contract book larger than A4 paper and left a group photo with smiles on their faces. The signing ceremony was evaluated as “the big fish eats the small fish for mergers and acquisitions” and “Huang Haitao, who will be eaten if it doesn’t grow bigger, is eaten.” Looking at it now, CIFI took the initiative to terminate this cooperation. On April 14, CIFI Holdings (00884.HK) issued an announcement stating that after due diligence and further commercial negotiations, the parties decided not to sign a final agreement on the joint venture arrangement and will cancel the cooperation framework agreement signed with Changtai Group.
This means that CIFI finally gave up the acquisition of Changtai. At the signing ceremony on January 7, CIFI and Changtai signed a strategic cooperation framework agreement for CIFI Group and Changtai Group to jointly establish a platform company in accordance with a 65%: 35% equity ratio.
According to the official account of Changtai Group, the newly established platform company is headquartered in Nanning, Guangxi. Huang Haitao, chairman of Changtai Group, serves as the chairman of the platform company, and Xuhui Group’s current Jiangsu regional group vice president Hu Xiang serves as the president of the platform company.
The newly established platform company will integrate the original projects and teams of Zhangtai and Xuhui in Guangxi, focusing on the deep cultivation of key cities in Guangxi such as Nanning, Guilin, and Liuzhou.
At that time, Huang Haitao said that the cooperation with CIFI this time was a “strong alliance”, and it was based on mutual understanding, recognition and value recognition of both parties. It is believed that the cooperation with CIFI will further enhance Changtai’s management level and core competitiveness, and will also help further cultivate the Guangxi market.
Lin Zhong said that the two sides have similar concepts and similar cultures, and both put project quality and customer satisfaction in an important position, and there are many complementarities in the regional layout. It is believed that the strong cooperation with Zhangtai will help CIFI to deeply cultivate the entire Guangxi province and also consolidate the leading position of the platform company in Guangxi Spark Global Limited.
According to Tianyan, on January 29, CIFI and Zhangtai established a joint venture Guangxi Zhanghui Enterprise Management Co., Ltd., of which CIFI holds 65% of the shares and Huang Haitao’s wife Wang Chunling holds 100% of the shares of Guilin Joint Venture Investment Co., Ltd. Holds 35% of the shares. The chairman of Guangxi Zhanghui Enterprise Management Co., Ltd. is Huang Haitao and the general manager is Hu Xiang.
Changtai was founded in 1992 and started out in Guilin. It was originally a Taiwanese-invested enterprise. When Changtai was founded, Huang Haitao was the driver of this company. Later, Taiwanese businessmen withdrew from the investment, and the company’s equity and assets were transferred to Huang Haitao.
There are several key points in the historical development of Changtai. In 2010, Guilin Changtai Industrial Group Co., Ltd. was formally established. Huang Haitao was appointed as the president of Changtai Group and officially took the helm of the company. In 2016, Zhangtai ranked first in Guilin in terms of sales area and sales amount, and became the big brother of the Guilin market. In 2017, Zhangtai moved its headquarters to Nanning, with sales exceeding tens of billions. In 2020, Zhangtai stepped out of Guangxi and started a nationalization step, entering the markets of Wuxi, Nanjing, Wuhan and Nanchang.