Beijing Compass Technology Development Co Ltd: A Shift in Capital Strategy Amid Stock Price Volatility
Beijing Compass Technology Development Co Ltd (stock code 300803.SZ) has recently announced the withdrawal of its planned private placement, a move that follows a sustained decline in its share price and a reassessment of the company’s capital‑raising objectives.
Withdrawal of the Special‑Targeted Stock Issue
On 5 November 2025, the company’s board decided to terminate the plan to issue up to 30 % of its shares to no more than 35 “specific investors,” with a target of raising no more than 2.904 billion CNY. The decision was communicated in an official announcement that was subsequently published on the Shenzhen Stock Exchange’s regulatory portal. The withdrawal coincides with the Shenzhen Stock Exchange’s formal acceptance of the company’s request to retract the filing for the special‑targeted issuance.
The original plan, introduced in May 2022, aimed to fund a comprehensive expansion of Compass’s subsidiary, 麦高证券, and to support a range of new business lines—wealth management, margin trading, investment banking, securities investment, information technology, compliance‑risk control, and operating capital. The capital raise was intended to reinforce Compass’s status as the second internet‑finance information‑services provider in China to hold a securities licence.
Why the Plan Fell Through
Compass’s share price has surged nearly 400 % since 2023, reaching 136.03 CNY per share on 5 November 2025. By contrast, the price was roughly 30 CNY in 2022 when the plan first emerged. The steep appreciation has made it difficult to attract willing investors for a private placement at a price that would deliver the desired capital infusion without diluting existing shareholders excessively.
In a statement, the board cited “a comprehensive evaluation of the internal and external environment, as well as the company’s strategic development objectives” as the basis for the cancellation. The decision reflects a pragmatic response to market realities and a commitment to preserving shareholder value.
Market Reaction and Share‑Price Trend
Compass’s stock has been in a downward trajectory for the past week, falling 1.26 % on 5 November and trading at 136.03 CNY, a 13.45 % decline over five consecutive days. The 52‑week high of 179.01 CNY (on 16 September 2025) and the 52‑week low of 50.4 CNY (on 6 April 2025) frame the current valuation. The market cap stands at approximately 83.8 billion CNY, with a price‑earnings ratio of 276.77—an indicator of premium pricing relative to earnings.
Investor sentiment was further reflected in the activity of two funds managed by 中银证券. Both funds collectively held 15,400 shares of Compass, incurring an estimated 2.55 million CNY in unrealised losses during the five‑day decline. The funds’ exposure to Compass underscores the importance of the stock’s performance to institutional portfolios.
Outlook for Compass
With the withdrawal of the private placement, Compass is now focused on deploying its existing capital efficiently and pursuing organic growth within its core business lines. The company’s long‑term strategy remains anchored in expanding its internet‑based securities tools and data‑analytics services, while exploring new avenues in wealth management and fintech infrastructure.
Investors will likely monitor the company’s ability to capitalize on its high‑quality data services and regulatory advantages, especially as it seeks to maintain a competitive edge in China’s rapidly evolving financial technology landscape.
