Hong Kong listed company Landing International (00582.HK) issued an announcement today (August 23) evening stating that since August 23, 2018, it has not been able to contact or contact Yang Zhihui, the chairman of the company's board of directors and executive director.

Landing International suspended trading at 10:53 am on August 23. Before the suspension, the stock price fell 35.06% to 3.76 Hong Kong dollars. The stock will resume trading on the morning of the 24th.

What attracts attention is that Yang Zhihui is inextricably linked with China Huarong (02799.HK) companies.According to Hong Kong media Hong Kong Stock Strategist Wang on August 23, citing sources, Yang Zhizhi was originally scheduled to fly to the Phnom Penh Casino in Cambodia that day, but was taken away as soon as he got off the plane.On the same day, a Caixin reporter also confirmed the news in an interview.

The 47-year-old Yang Zhihui, a native of Anhui, was originally engaged in real estate development business in the Mainland, and later moved to the Hong Kong capital market to invest in the gaming industry.Yang Zhihui currently holds 50.48% of the shares of Landing International and is the controlling shareholder. In addition, he is also the major shareholder of China Health Industry (01143.HK, formerly Zhonghui International), holding 25.5% of the shares.

The predecessor of Landing International was Jiahui Chemical.In June 2013, Landing International acquired 51.31% shares of Jiahui Chemical at a total price of 1.324 billion Hong Kong dollars, entering the Hong Kong stock market through a back door.At that time, Yang Zhihui was the sole shareholder and director of Landing International, the founder and chairman of the board of directors of Landing Holdings Group.

In 2014, Landing International fully acquired an overseas company named Ultra Matrix International Ltd. at a consideration of HK$876 million, and acquired the latter’s Beluga Ocean casino located in the five-star hotel Hyatt Hotel in Jeju Island, South Korea.Get the first gaming license and start to enter the gaming industry.

According to the Caixin reporter, Yang Zhihui had a close relationship with Bai Hui, the former general manager of Huarong International.Landing International and Huaxia Health Industry (01143.HK, formerly Zhonghui International), two listed companies of Yangzhizhi in Hong Kong, are inextricably linked with Huarong International.In early June, senior executives of overseas subsidiaries such as Tianhui were investigated in Beijing. The case involved the corruption case of Lai Xiaomin, the former chairman who was sacked in April.

Caixin reporter found that on December 29, 2015, Huarong International bought 146 million shares of Zhonghui International (01143.HK, later renamed Huaxia Health Industry) from Yang Zhihui at an average price of 9.9 Hong Kong dollars.1.44 billion Hong Kong dollars, Huarong International's shareholding ratio rose to 29.4%, and Yang Zhihui's shareholding ratio dropped to 30.6%, but it is still the controlling shareholder.

However, looking closely at the transaction, Yang Zhihui acquired the equity of Zhonghui International in May and November of that year, and it subscribed for a total of 71.5% of the equity for HK$604 million.At the end of December, Huarong International became a shareholder. Comparing the price and time of the investment, it means that Yang Zhihui earned more than 800 million Hong Kong dollars in less than a few months.

When Huarong International became a shareholder, it coincided with the heyday of Zhonghui International's share price. In the past, Zhonghui International has always been a penny stock in the Hong Kong stock market, that is, a stock with a par value of less than 1 Hong Kong dollar.In March 2016, after Huarong International became a shareholder, Zhonghui International announced that it would split its shares by 10, which means that Huarong International's share price was divided into HK$0.99 per share.After that, the stock price of Zhonghui International took a sharp turn. Within four months, the stock price plummeted by nearly 90% to HK$0.13, and has remained at around HK$0.2 per share since then.

According to the information disclosed by the Hong Kong Stock Exchange, Huarong International’s position on October 13, 2017 was 0, and the resale price was HK$0.198. Based on this calculation, Huarong International lost about 1.15 billion for this investment in less than two yearsHong Kong dollar.

Yang Zhihui has business relationship with Huang Youlong.In February 2014, through Huang Youlong's matchmaking, Landing International signed a cooperation agreement with the international gaming giant Genting Singapore Group (hereinafter referred to as Genting Group) to establish a joint venture company to jointly develop and operate the Jeju Island project, intending to build it into a world-classGaming and integrated resorts.Also in February 2014, Huang Youlong subscribed for 500 million shares of Landing International, accounting for about 3.12% of the total share capital after the share expansion. The subscription price of HK$0.40 was a discount of about 37% from the closing price of the previous trading day.Unlike other subscribers, there is no one-year lock-up period for Huang Youlong's shares.Whether Huang Youlong still holds shares in Landing International is not disclosed in the company's annual report.

In addition, China Goldjoy (01282.HK), a Hong Kong-listed platform under the Baoneng Department, announced in early January this year that it spent HK$398 million to increase its stake in Landing International, raising its shareholding ratio to 1.74%.

The trend of Landing International has been strange this year.After several consecutive years of losses and small profits, the first half of 2018 results were released on August 2. Within a week, the stock price soared by 50%.Landing International announced that in the first half of 2018, its revenue increased 3.6 times year-on-year to HK$1.752 billion, and its profit increased 5.78 times year-on-year to HK$281 million.Yang Zhihui said that the growth came from the revenue contribution of the gaming business.In the first half of the year, Landing International’s gaming revenue increased by 10.24 times to HK$1.405 billion.

Landing International’s announcement today emphasized that the current business operations and financial conditions remain normal. Since the daily business is in charge of the senior management team, the board of directors currently does not expect the absence of Yang Zhizhi to have a material adverse impact on the company’s business operations and financial conditions.

Yang Zhizhi is actually a white glove.A person familiar with the Hong Kong capital market pointed out.Although Yang Zhihui is a good dancer in the Hong Kong capital market, in 2016, the profile picture of the missing person notice was posted on the flyover in Central, Hong Kong's financial center, questioning him as a fraudster and heavily in debt.■