After regaining his freedom, the low-key and secretive "king of private equity" Xu Xiang has once again attracted market attention at the end of this year. On the evening of December 25th, Daheng Technology (600288.SH), Ningbo Zhongbai (600857.SH), and Gorgeous Family (600503.SH) each disclosed that the Qingdao Intermediate People's Court will auction all the equity related to the company in the "Xu Xiang case", with two listed companies potentially undergoing a change of ownership. Financial Union News reporters noted that the total value of the equity to be auctioned exceeds 1.6 billion yuan. However, the time and method of these three judicial auctions have not been determined yet. The equity of the three listed companies involved in the case will be auctioned off, potentially resulting in a change of control for Daheng Technology, Ningbo Zhongbai, and Gorgeous Family. Having held the shares for around 10 years, there may still be unrealized losses. According to public information, Xu Xiang's family and the "Zexi system" are still major shareholders of multiple listed companies. As of the end of the third quarter of 2024, Xu Xiang's mother Zheng Suzhen held 14.88% of the shares of Wenfeng Shares (601010.SH), making her the second largest shareholder of the company; at the same time, Zheng Suzhen is also the largest shareholder and actual controller of Daheng Technology, holding a stake of 29.75%. Ningbo Zhongbai's controlling shareholder is the Tibet Zetian Investment Development Co., Ltd. of the "Zexi system", holding a 15.78% stake, and the actual controller is Xu Xiang's father, Xu Bailiang, holding a 15.62% stake; Zheng Suzhen's sister, Zheng Sue, currently also holds 3.57% of Ningbo Zhongbai's shares, making her the fourth largest shareholder of the company. It is worth mentioning that Tibet Zetian's license was revoked on June 17, 2017. In addition, the Zexi 6th Single Fund Trust holds 5% of Kangqiang Electronics' (002119.SZ) shares; the Shanghai Zexi Zengxu Investment Center (Limited Partnership) holds 5.62% of Gorgeous Family's shares, making it the second largest shareholder of the company. The equity held by Xu Xiang's family and the "Zexi system" in Daheng Technology, Ningbo Zhongbai, and Gorgeous Family is all included in the auction. Additionally, Ningbo Zhongbai's announcement also shows that the 18.884 million unrestricted shares registered under Zhu Renbao's name are also included in the auction. Overall, the combined value of the shares of Ningbo Zhongbai, Daheng Technology, and Gorgeous Family to be auctioned this time is approximately 1.661 billion yuan. If the shares of Daheng Technology held by Zheng Suzhen and the shares of Ningbo Zhongbai held by Tibet Zetian are successfully auctioned off, the controlling shareholders of Daheng Technology and Ningbo Zhongbai will change. The auction of Gorgeous Family's shares or assets may result in a change of ownership for two listed companies. Public information shows that in 2014, Tibet Zetian acquired approximately 15.69% of Ningbo Zhongbai's shares through the court at a price of 9.10 yuan per share, becoming the largest shareholder of Ningbo Zhongbai. Zhuyong, closely related to Xu Xiang, and his father Zhurenbao, acquired 8.42% of Ningbo Zhongbai's shares held by Yager at a price of 12.02 yuan per share, becoming the second largest shareholder of the company. On July 10, 2015, Tibet Zetian increased its holdings in Ningbo Zhongbai by 200,500 shares. As a result, Tibet Zetian's shareholding in Ningbo Zhongbai increased to 15.78%. Wind data shows that as of the close of December 25th, Ningbo Zhongbai's stock price was 7.22 yuan per share. When Zheng Suzhen acquired 29.52% of Daheng Technology's shares in 2014 at a price of 9.32 yuan per share, with a transfer price of 1.202 billion yuan. As of the close of December 25th this year, Daheng Technology's stock price was 9.00 yuan per share. Gorgeous Family was once one of Xu Xiang's classic "masterpieces". In 2014, Shanghai Zexi subscribed to 90 million shares of Gorgeous Family at a price of 3.67 yuan per share through a private placement, becoming the second largest shareholder of the company. As of the close of December 25th, Gorgeous Family's stock price was 2.71 yuan per share. In conclusion, the "power struggle" within Gorgeous Family may come to an end. Currently, Shanghai Zexi remains the second largest shareholder of Gorgeous Family. The controlling shareholder of Gorgeous Family is Shanghai Nanjiang, but its ownership is only 7.12%. It is worth noting that with the judicial auction of the shares held by Shanghai Zexi, the "power struggle" within Gorgeous Family may come to an end. In May 2023, Xu Xiang publicly criticized Gorgeous Family through the media, stating that he "could not bear it anymore" and that if the fundamentals of Gorgeous Family continue to deteriorate, they will face the risk of delisting, which is extremely irresponsible to the majority of investors. Xu Xiang also mentioned that he had nominated a director recommendation proposal to the company and requested a vote at the shareholder meeting to supervise Gorgeous Family's transition to the emerging high-tech industry and stabilize the company's fundamentals and stock price. After Shanghai Zexi invested in Gorgeous Family, the company began to move away from its traditional real estate business and ventured into fields such as robotics, graphene, and near-space flight vehicles, attracting capital market attention. According to Wind data, on May 28, 2015, Gorgeous Family's stock price reached a historical high of 30.75 yuan per share. By calculations, within less than a year after the investment, Shanghai Zexi had an unrealized profit of over 2.437 billion yuan. However, as Xu Xiang went to prison, the stock price of Gorgeous Family also declined continuously. Currently, Gorgeous Family's stock price is less than a tenth of its peak in 2015. Faced with Xu Xiang's actions, Gorgeous Family believes that Shanghai Zexi's shares are frozen, and the voting rights have not been exercised for over 7 years, suggesting flaws in the proposal process. Ultimately, due to opposition from shareholders like Shanghai Zexi, all 21 proposals at Gorgeous Family's 2022 annual shareholder meeting were rejected, and the company received a regulatory letter from the Shanghai Stock Exchange. In fact, after Xu Xiang's release from prison, he has not been very active in the capital market. The last time he spoke out as a shareholder was in 2021 during the asset acquisition case of Wenfeng Shares. At that time, as the second largest shareholder, Xu Xiang openly stated, "The valuation of the target assets in the acquisition is too high, the quality is mediocre, and the majority shareholder of Wenfeng Shares is suspected of embezzling the interests of the listed company. I strongly oppose this acquisition proposal." Ultimately, after Xu Xiang spoke out, Wenfeng Shares terminated the asset acquisition. This article was originally published on "Financial Union News" and edited by Liu Jiayin for GMTEight.