66-year-old proprietress liquidates silver holdings for cash, reaping nearly HK$250 million in investment gains from Blessing Life Services (03686.HK)

ZC Asia has learnt that Guangzhou-based property management firm Qifu Life Services (03686.HK) has recently captured market attention through a noteworthy investment manoeuvre. While the company recorded operating revenue of RMB161 million for the first half of 2025, it is projected to generate profits of RMB247 million from two silver transactions completed within a mere three days in January 2026.

On 9 January and 12 January respectively, Qifu Life Services announced the sale of 400,000 ounces and 280,000 ounces of undistributed silver bars, with total transaction consideration amounting to approximately RMB 226 million and RMB 162 million respectively. This completes the full liquidation of the company's 680,000-ounce silver bar holdings as of the end of June 2025.

Calculated based on the book value at the end of 2024, these two transactions collectively generated approximately RMB 247 million in gains. The first batch of 400,000 ounces had a book value of around RMB 83.1 million, rising to RMB 202 million at sale – a 143% increase. The second batch of 280,000 ounces had a book value of approximately ¥58.2 million, selling for around ¥142 million – a gain of nearly 49%.

This high-return investment is closely linked to the company's actual controller, 66-year-old Meng Lihong. She serves not only as the listed company's Chairperson and Chief Executive Officer but is also the wife of Peng Linji, founder of Guangdong real estate giant Qifu Group. In the early 1990s, under Peng Linji's leadership, Qifu Group pioneered China's large-scale property development model, transforming a marshy wasteland into Guangzhou Qifu New Village – dubbed ‘China's Premier Community’ – housing nearly 200,000 residents.

A review of historical records reveals that Qifu Life Services' silver investment was by no means a speculative fluke, but rather a highly disciplined, long-term strategy initiated five years prior. In February 2020, when silver prices languished near a decade-long low, the company decisively built its position in batches, acquiring 800,000 ounces at an average cost of approximately 128.75 yuan per ounce. Subsequent manoeuvres demonstrated even greater skill: after holding for nearly two years, it partially cashed out when silver rebounded to around ¥158 per ounce in 2022, realising initial profits. By mid-2024, the company further increased its holdings by 380,000 ounces at an average cost of approximately ¥205 per ounce. By 2025, as silver prices embarked on a significant upward trajectory, the company decisively liquidated its entire position when prices surged to historic highs of $565–577 per ounce.

Notably, returns from silver investments have provided crucial support to Qifu Life Services' recent performance. In the first half of 2025, the company's revenue declined by 11.56% year-on-year to RMB161 million, yet profit attributable to owners surged by 41.57% to RMB75.15 million. Fair value gains from silver bullion investments contributed approximately RMB33.8 million to this profit.

Qifu Life Services' core operations span five sectors: property management, retail, after-school tutoring, information technology, and ancillary lifestyle services. In the first half of 2025, only property management services recorded 34% revenue growth, with all other segments experiencing varying declines. The company currently manages approximately 10.189 million square metres of floor space, while operating 24 retail outlets and four training centres – a business structure markedly distinct from traditional property firms.

Following the completion of its silver asset disposal, Qifu Life Services will secure substantial cash reserves. Market attention now focuses on the company's intended use of these funds: whether to revitalise declining operations such as retail and training, expand its property management scale, or pursue new investment opportunities remains unclear at present.

As a diversified service enterprise managing approximately 10.19 million square metres while simultaneously operating retail outlets and training centres, Qifu Life Services exhibits a distinctive approach within the traditional property management sector. Balancing investment initiatives with its core operations will be pivotal to its next phase of development.

Disclaimer: The content herein is for reference only and does not constitute any form of investment advice. Should any information contained herein prove inaccurate, incomplete, or potentially misleading, please refer to the company's official announcements. Market risks exist; investment requires caution.