Low profile businessman behind gutsy Fullshare deal to swallow wind turbine gearbox leader

Ji Changqun, a Nanjing businessman little known to Hong Kong capital markets until this year, surprised investors this week by pulling off a share swap deal that will see his listed vehicle Fullshare gobble up China High Speed Transmission Equipment, a much more profitable and asset-heavy company, without using any cash.

Fullshare shot to fame not because of achievements or brand recognition in its core property development business, but because its share price soared 30-fold without matching profit growth since Ji took over three years ago, making it a risky proposition for would-be investors. Ji gained control over Fullshare by injecting property assets into the company.

It is also not an easy company to decipher, since it has also been rapidly diversifying into health and personal care products, elderly care resort development, and investment banking – all achieved through a long string of acquisitions and investments – although property remains its main earnings driver.

They deals include HK$1.82 billion worth of investments in two property developers, a personal care products firm and a skincare products firm – all listed in Hong Kong. The biggest deal, HK$1 billion for Hong Kong listed property developer Zall Development, was paid for by issuing shares instead of cash.

Its “green buildings” construction business bought from Ji’s privately-owned Fullshare Group in2014 and last year was sold to independent third parties in September this year.

Management cited as the reason for selling the “long operating cycle and large initial investment cost” and the fact that the business volume and revenue did not match the resources deployed.

“[Fullshare] has no analyst [research report[ coverage and appears not to be familiar to most institutional investors,” Pierre Lau, head of Asia-Pacific utilities research at Citigroup Global Markets Asia, said in a note after meeting Fullshare management late October.