Shenzhen Tycoon with 6.6 Billion Assets Invests 500 Million: Han's Laser's Actual Controller Gao Yunfeng Finally Takes Action
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In early February, he issued an announcement stating that he had spent over 4 million yuan for the first share repurchase, with an overall repurchase budget starting at 500 million yuan, potentially reaching up to 1 billion yuan.
Han's Laser's stock price is currently at an 8-year low. In just two years, its market value has plummeted from its peak, dropping by about 65%, leaving only around 20 billion yuan, with approximately 37 billion yuan evaporated.
Gao Yunfeng holds about a quarter of the actual shares, and his personal wealth has shrunk by about 9 billion yuan. According to the Hurun Rich List, he still possesses billions, but his wealth has significantly diminished. Gao Yunfeng's troubles are not just about the disappearance of paper wealth.
In early February, he pledged 4.8 million shares of Han's Laser, which he controls, to China CITIC Bank to supplement working capital. Over 90% of his shares are now pledged.
He might be a bit tight on cash.
Facing a Downturn
Han's Laser is a member of Han's Holdings, with Gao Yunfeng as the actual controller. This Jilin native ventured south around 1993 and later founded Han's Group in Shenzhen. Named 'Dazu', he aspired to create a vast corporate family.
Tianyancha data shows that Gao Yunfeng holds 99.88% of Dazu Holdings' equity, indirectly owns 24.5% of Dazu Laser's shares, which in turn controls about 85% of Dazu CNC's equity. The latter has a market value of approximately 13.5 billion yuan.
The two listed companies, originally in a parent-subsidiary relationship with shared roots, are both performing poorly.
From January to September 2023, Dazu Laser reported revenue of 9.387 billion yuan and net profit of 633 million yuan, a decline of 37.59%.
The company stated that insufficient downstream demand and reduced orders have made the timing of performance improvement uncertain.
Dazu CNC's situation is equally concerning, with the sluggish consumer electronics industry significantly impacting its main PCB equipment business.
Forecasts indicate its 2023 net profit will be between 130 million to 165 million yuan, representing a decline of over 62%. Han's Laser is the core industry of Gao Yunfeng.
According to Han's Holdings bond report, from January to June last year, Han's Holdings had a total revenue of 6.863 billion yuan, with laser and automation, PCB, and LED equipment accounting for approximately 6 billion yuan, indicating significant pressure.
In recent years, Gao Yunfeng has rarely appeared in public but has been continuously engaged in financing activities.
First, there was a plan to spin off Han's Fentest, a subsidiary in the laser industry, for an IPO with an intended financing of 261 million yuan, which was recently terminated.
Second, he sold 65.37% of the shares in Han's Sitech, another subsidiary, obtaining 1.046 billion yuan in liquidity.
At the same time, he frequently pledged equity to secure funds.
Statistics show that in 2023, Han's Laser issued over 30 announcements regarding major shareholders pledging equity, with Gao Yunfeng having pledged a total of 89.37 million shares of Han's Laser, accounting for 92.78% of his holdings. Profit decline has weakened the broader market, impacting Han's Laser's stock price. If the continuous downtrend persists, Gao Yunfeng, with his substantial pledged shares, will find himself in a very passive position. Whether the share buybacks will prove effective remains to be observed.
Gao Yunfeng had more plans in the pipeline, such as spinning off the subsidiary Shanghai Fuchuangde for a ChiNext listing, but the IPO application has yet to be submitted.
Core Equipment
Now 57 years old, Gao Yunfeng studied aircraft design at Beihang University in his early years, giving him a natural sensitivity to hardware equipment.
During the golden age of consumer electronics, he spotted a business opportunity while repairing laser equipment for others. He led the company into Apple's supply chain, manufacturing laser spot welding equipment for mobile phones, which propelled the business to new heights.
At that time, most domestic laser equipment relied on imports, and repairs had to be done overseas, incurring high costs.
Gao Yunfeng aspired to develop high-end non-standard equipment with comparable technical craftsmanship, enabling more localized integration to support the personalized customization needs of downstream clients. However, entering the equipment manufacturing industry required heavy capital and asset investments, making Gao Yunfeng's start particularly challenging.
Fortunately, he successfully grew his company and brought it to the capital market. Subsequently, he continued to develop other products for industrial production, such as CNC machine tools and other automation equipment.
Gao Yunfeng established one of Asia's top industrial laser processing equipment manufacturers, capable of producing laser marking machines, welding machines, cutting machines, welding equipment, PCB drilling machines, and industrial robots.
These equipment have strong connections with specific industries, serving downstream clients in consumer electronics, photovoltaics, semiconductors, and other sectors with vast market potential.
It's revealed that Gao Yunfeng also provides automotive manufacturers like BYD, Great Wall Motors, Volkswagen, and Yutong with products such as intelligent welding lines for car bodies, laser welding equipment, and electric drive intelligent assembly lines.
The performance peak of Han's Laser occurred in 2021, with annual revenue reaching 16.3 billion yuan and a net profit of approximately 2 billion yuan. By the end of that year, its market capitalization soared to a high of 56 billion yuan.
The company officially stated in 2020 that it was developing lithography machines in-house and had shipped lithography equipment in the PCB field, though there have been no further updates since. Regarding Dazu Laser, although profits have declined, the cash flow from its operating activities continues to maintain a positive inflow, while Gao Yufeng's large-scale pledges are being channeled into other industries.
Passionate About Real Estate
Gao Yunfeng's business empire has many hidden aspects beneath the surface.
The official website shows that Dazu Holdings encompasses five major sectors: real estate development, hotel operations, property management, equipment manufacturing, and healthcare, indicating a broad business scope.
Apart from equipment manufacturing, he has invested particularly heavily in the real estate sector.
Dazu Holdings' official website reveals that Gao Yunfeng ventured into real estate in 2008, with operations not only in first- and second-tier cities like Beijing, Shanghai, and Shenzhen but also extending to the U.S., Switzerland, and Australia, with a cumulative development area exceeding 5 million square meters.
In Shenzhen, the city where he made his fortune, Dazu has multiple real estate projects, including participation in urban renewal projects such as Dazu Heshan and Dazu Yunfeng residential areas, all managed by Dazu Property Management Co., Ltd. The Gao family, known for their enthusiasm in real estate, has acquired many prime locations—Han's Laser's headquarters is situated on Shenzhen's main thoroughfare, Shennan Avenue, adjacent to Tencent's headquarters.
Over the years, Gao Yunfeng has invested heavily in the development and operation of industrial parks and commercial real estate.
Their notable projects include the Beijing Han's Universal Industrial Park and Beijing Han's Plaza, both located in the Beijing Economic-Technological Development Area, with construction areas of 208,700 square meters and 65,000 square meters, respectively.
According to bond reports, as of June 2023, Han's Holdings' total assets amounted to 66 billion yuan, while Han's Laser's total assets were 35.2 billion yuan. The remaining approximately 30 billion yuan in assets primarily consists of real estate projects, tying up substantial capital.
Corresponding income is relatively limited. From January to June, revenue from property leasing, real estate sales, and hotel operations totaled around 730 million yuan.
With the real estate market downturn in recent years, Gao Yunfeng has frequently pledged Han's Laser's shares as collateral, inevitably raising concerns among investors.
"The company is a high-end equipment manufacturer and is not involved in the real estate business," Han's Laser has only provided a brief response. Gao Yunfeng comes from an industrial background and single-handedly built a giant in laser equipment. If real estate investments truly affect the core business, it would indeed be quite regrettable.