A side

　　Fintech company based in Hong Kong, China, mainly engaged in the sale of financial solutions and insurance related businesses

　　50 employees, net profit of more than 100 million yuan a year

　　When the market value was the highest, it rushed to US$400 billion, becoming the largest Chinese concept stock

　　side B

　　From April 30, 2021 to February 28, 2022, AMTD Digital's revenue was approximately HK$168 million and net profit was HK$187 million

　　Although it is known as "Li Ka-shing concept stock", CKH Holdings clarifies that it is not involved in the operation of AMTD Group and is negotiating to sell less than 4% of its shares

　　AMTD Digital's Actual Controller Cai Zhijian faces investigation by Hong Kong Securities and Futures Commission

　　Recently, AMTD Digital (HKD.US), a Chinese concept stock company that has been listed for less than a month, has frequently rushed to the financial hot search due to its "demon-like" trend.

　　AMTD Digital was listed on July 15. Within 13 trading days, its share price rose from US$7.8/share to US$1,100/share, and once soared to US$2,555.3/share!

It can be described as the largest "demon stock" in 2022, and its market value once exceeded that of Alibaba (BABA), reaching 400 billion US dollars.

　　Investors looked at each other: what is the origin of AMTD Digital?

　　demon spirit /

　　Market value once surpassed Ali

　　Another 1000 billion evaporated overnight

　　In the early morning of August 4th, Beijing time, U.S. stocks opened higher and moved higher. All three major indexes closed sharply higher, and most popular Chinese concept stocks and large technology stocks also rose.

　　According to market data, AMTD Digital continued to soar within 3 minutes of the opening of the U.S. stock market on Wednesday, breaking through US$2,000 per share at one point, with a market value of over US$370 billion, ranking 15th in the global market capitalization list, climbing 65 places.

But then it fell rapidly, and its stock price fell 41.04%, triggering a circuit breaker, and the stock price rebounded after the resumption of trading.

As of the close, AMTD Digital had fallen by more than 34% to US$1,100 per share, halving from the highest price in the day, with a total market value of US$203.55 billion.

Compared with the market value at the high point, AMTD Digital lost more than 150 billion US dollars (about 1 trillion yuan) in market value at the close.

　　AMTD Digital is a subsidiary of AMTD Group and is registered in the Cayman Islands. It is a small investment banking company in Hong Kong, China, with only 50 employees.

　　AMTD Digital was listed on the New York Stock Exchange on July 15 with an issue price of US$7.8 per share.

In the past 13 trading days alone, at the close of trading on August 2, the stock price reached $1,679 per share, an increase of more than 200 times!

What's even crazier is that AMTD Digital's share price reached a maximum of US$2,555.30 per share, and its total market value once exceeded META (ie Facebook), as well as industry leaders such as Pfizer, Coca-Cola, and Alibaba.

　　On August 2, AMTD Digital responded to an increase of over 200 times, "Since AMTD Digital's IPO, the company has noticed significant fluctuations in share prices and observed some very active trading volumes. According to our To the best of our knowledge, there have been no material circumstances, events or other matters related to the company's business and operating activities since the IPO date. The company will also closely monitor the market for any unusual trading activity or circumstances."

　　Long and clarify /

　　Not involved in the operation of AMTD Group

　　Negotiating to sell less than 4% stake

　　According to public information, AMTD Group was founded in 2003 by Li Ka-shing's Cheung Kong Industrial Group and Hutchison Whampoa. It is the largest private independent investment bank in Asia and was listed on the New York Stock Exchange in 2019.

Its strategic shareholders also include Hong Kong celebrities such as Far East Development Qiu Dachang and Henderson Land Development's eldest son Li Jiajie.

　　AMTD Digital, which is listed in the US this time, was spun off from AMTD International, which is also a subsidiary of the group.

AMTD Digital is also widely concerned for its "Li Ka-shing concept stock".

　　Yesterday afternoon, regarding the recent financial speculation of AMTD Digital and Li Ka-shing's involvement in the turmoil, CK Hutchison Industries (hereinafter referred to as CKH) issued a clarification that the company under the CK Group does not directly hold the equity of AMTD Digital, nor does it No business dealings with this company.

The current Board of Directors of Fashion Group has no representative of CK Group; CK Group is not involved in the operation of AMTD Group and has no knowledge of any business and plans of the Group.

　　Previously, CKH Holdings said it had sold most of the shares of AMTD Group, holding less than 4% of the shares. CKH Holdings also said yesterday afternoon that it is now negotiating the sale of these shares.

　　Affected by this news, AMTD Digital plunged 24% before the market.

　　Fundamental analysis /

　　Fiscal 2021 revenue of nearly 200 million

　　How to prop up the trillion-dollar market value

　　In terms of performance, AMTD Digital's business involves digital financial licenses and services, digital media, content and marketing and other fields, and its revenue mainly comes from digital financial service business and "spiderweb" ecosystem solutions business.

The former is mainly insurance brokerage and technology-related services, while the latter provides paid members with services such as platform access rights and resource docking.

　　In terms of the digital financial business sector, AMTD Digital is positioned to "build a cross-market intelligent digital financial service platform with digital financial licenses that are scarce in many industries in Asia".

The financial licenses it holds include Hong Kong Insurance Broker License and Virtual Banking License.

At the same time, AMTD Digital also holds a controlling stake in PolicyPal, a digital insurance technology platform in Singapore.

　　According to the prospectus, from fiscal years 2019 to 2021, AMTD Digital's total revenue was approximately HK$14.554 million, HK$168 million and HK$196 million respectively; the profits during the period were HK$21.544 million, HK$158 million and HK$172 million respectively.

In the 10 months from April 30, 2021 to February 28, 2022, AMTD Digital's revenue was approximately HK$168 million, and its net profit was HK$187 million.

　　Alibaba, whose market value was once surpassed by AMTD Digital, has an operating income of 717.3 billion yuan in fiscal year 2021 and a net profit of 172 billion yuan attributable to the company's shareholders.

　　Wang Pengbo, an analyst in Broadcom's financial industry, said: "Although it has the value of a license, it has shareholder endorsements, and its specific business revenue performance is satisfactory, its current advantages still cannot support the current stock price. This may be the case alone. The concept of hype is a bit similar to being hyped."

　　Investment and financing expert Xu Xiaoheng also believes that AMTD Digital's share price is not sustainable, and its performance and market value are seriously mismatched. Besides the skyrocketing, the market has doubts about whether AMTD Digital can support a market value of nearly one trillion yuan. The price-earnings ratio It has exceeded 10,000 times, and the fundamentals are difficult to support the valuation.

　　The investment bankers behind AMTD Digital

　　Cai Zhijian became the richest man in Hong Kong, and Li Ka-shing is looming?

　　AMTD Group, the parent company of AMTD Digital, was founded by CKH Holdings controlled by Li Ka-shing.

During the reporter's investigation, it was found that the current control structure of AMTD Digital did not point to Li Ka-shing, but to Calvin Choi, a "celebrity" in the Hong Kong investment banking circle.

　　"Cai Zhijian has always been a figure at the forefront of Hong Kong's financial circle," a person from the Hong Kong branch of an insurance company revealed to reporters.

　　Mysterious billionaire Cai Zhijian surfaced

　　On the official website of AMTD Group, the names of Hutchison Whampoa and Cheung Kong Industrial are prominently displayed, which seems to indicate that the company has a deep relationship with Li Ka-shing.

　　However, judging from the public information, "Li Chaoren" does not have much connection with AMTD Digital, at best it can only be said to be looming.

　　According to the US SEC documents, AMTD Digital has a relatively simple shareholding structure, and its major shareholder is AMTD IDEA Group (stock code "AMTD"), a company also listed on the US stock market.

　　As of the end of 2021, Hongda Wealth Management held 65.65 million AMTD Digital Class B shares, accounting for 88.7% of AMTD Digital's shareholders' equity.

As one voting right of Class B shares is equivalent to 20 Class A shares, HTC Financial Management actually owns 99.4% of the voting rights at AMTD Digital's general meeting of shareholders.

　　Through the A/B share equity structure, Cai Zhijian has formed an absolute holding of more than 50% in the two listed companies of Hongda Finance and AMTD Digital.

　　At the same time, if Cai Zhijian currently holds about 18.09% of the shareholders’ equity in AMTD Digital, the mysterious rich man’s net worth has reached at least US$56.218 billion (about 379.6 billion yuan, calculated based on the closing market value on August 2) .

　　Comparing with those well-known Forbes rich people, Cai Zhijian's "paper wealth" has far exceeded Li Ka-shing's $36 billion net worth and ranks among the richest people in Hong Kong.

Compared with the upstarts in the mainland, Cai Zhijian's net worth is also higher than that of Pinduoduo founder Huang Zheng, second only to Zhong Suisui and Ma Huateng.

　　Deeply bound with Xiaomi

　　Who is Cai Zhijian?

　　AMTD Digital stated in the prospectus that Cai Zhijian is a self-made entrepreneur.

　　According to the official website of AMTD Group, Cai Zhijian served as the Managing Director (MD) of the Investment Banking Department of UBS Group and a member of the Asia Pacific Committee of the Global Family Office before joining AMTD Group.

In addition, Cai Zhijian also served as the China Chief Strategic Cooperation Officer of Citigroup's investment banking sector.

　　In the development process of AMTD Group, Xiaomi Group is its important partner.

　　According to the official website of AMTD Group, in July 2018, Xiaomi Group was listed on the Hong Kong Stock Exchange.

AMTD serves as the joint lead underwriter, joint bookrunner and joint lead manager of Xiaomi Group's IPO, and is the only Hong Kong-funded private financial institution among all the members of the underwriting syndicate.

　　On May 9, 2019, AMTD Group and Xiaomi Group jointly announced that their joint venture, Insight Fintech, was awarded a virtual bank license by the Hong Kong Monetary Authority.

　　On July 25, 2019, AMTD International submitted a prospectus to the US SEC.

Before going public in the United States, AMTD International conducted a round of fundraising, and many well-known companies participated in its Pre-IPO investment.

Including Xiaomi, Tongcheng Yilong, Mobvista, and Longling Investment, founded by Cai Wensheng, chairman of Meitu.

　　Or banned by the Hong Kong Securities and Futures Commission for 2 years

　　Even such a person with long sleeves and good dance is still in trouble.

　　According to previous reports from Tencent Technology, after CMIG's subsidiary CMIG and Ling Rui Capital Group jointly invested in AMTD Group, Li Ka-shing's CKH Holdings company retired, and Cai Zhijian joined CMIG as a matchmaker at the invitation of Dong Wenbiao, and was entrusted Managed CMIG's billions of funds, but the latter angrily claimed that Cai Zhijian had no news.

After CMIG's debt crisis broke out and Dong Wenbiao resigned, CMIG began to seek funds from Cai Zhijian. After repeated debt collections failed, he even hired someone to put up a banner in front of AMTD Group's office building, accusing Cai Zhijian of cheating and misappropriating funds up to hundreds of millions. Dollar.

Cai Zhijian made a series of public denials.

　　In addition, from 2014 to 2015, two projects that Cai Zhijian participated in while working at UBS were investigated by the Hong Kong Securities Regulatory Commission. The Hong Kong Securities Regulatory Commission issued a penalty decision to ban him from business for two years. Cai Zhijian’s application for a closed-door hearing was not obtained. The formal hearing will be held in public from December 12 to 16 this year.

　　Chengdu Business Daily-Red Star News reporter Yu Yao Tao Yueyang

　　Comprehensive 21st Century Business Herald, Beijing Business Daily