90% of Silver LOF investors are fully compensated. How much will the fund company have to pay? The actual controller's announcement provides the answer.

Before the Spring Festival, Guotou Ruixin Fund released the “Announcement on the Relevant Plan for Silver Funds,” addressing valuation adjustments caused by historic extreme market conditions in the silver market for its Guotou Ruixin Silver Futures Securities Investment Fund (LOF). A special work plan has been launched, and over 90% of investors will receive full compensation.

How much will the fund company pay in total? And what impact will this have?

The “Daily Economic News” reporter noted that the latest announcement from Guotou Ruixin’s actual controller, Guotou Investment, revealed relevant information.

The announcement states that the impact amount from this plan is less than 5% of Guotou Investment’s audited net profit attributable to shareholders in 2024, which is 2.694 billion yuan. Based on industry calculations of Guotou Investment’s equity holdings in Guotou Ruixin Funds, the maximum compensation payable could reach approximately 433 million yuan.

Looking at the revenue of Guotou Ruixin Funds over the past few years, the (consolidated) operating income for 2022, 2023, and 2024 was 1.255 billion yuan, 1.42 billion yuan, and 1.379 billion yuan, respectively, with net profits of 163 million yuan, 346 million yuan, and 376 million yuan. The consolidated net profit for the first half of 2025 was 149 million yuan. Compared to recent profit levels, this compensation effort is particularly significant.

Industry experts have commented that this special plan fully demonstrates the sincerity and determination of Guotou Ruixin and its shareholders.

How much will Guotou Ruixin pay? The actual controller’s announcement is here

The core calculation basis for this compensation amount comes from Guotou Investment’s announcement issued on February 23 (dated February 24).

The announcement clearly states that the impact of the silver LOF compensation plan on Guotou Investment’s net profit attributable to shareholders in 2026 will not exceed 5% of its audited net profit attributable to shareholders in 2024, and it will not have a substantial impact on the company’s overall business development.

According to Guotou Investment’s 2024 annual report, the audited net profit attributable to shareholders was 2.694 billion yuan. Based on this, the maximum impact on the consolidated financial statements of the actual controller is approximately 134.7 million yuan. To estimate the amount Guotou Ruixin Funds need to bear, their equity structure must be considered.

[Image source: Guotou Investment’s 2025 semi-annual report]

Public information shows that Guotou Ruixin is a third-level subsidiary of China Development Investment Group Co., Ltd. Guotou Investment, through its wholly owned subsidiary Guotou Investment Holding, holds 61.29% of Guotou Taikang Trust, which in turn holds 51% of Guotou Ruixin Funds, making it the controlling shareholder.

Industry insiders have estimated, based on the equity penetration ratio, that the maximum compensation Guotou Ruixin Funds need to bear is about 433 million yuan. It should be noted that this figure is calculated based on the theoretical maximum; the final amount will depend on the company’s actual data.

Let’s also review the recent revenue and profit figures of Guotou Ruixin Funds, summarized from the announcement:

From 2020 to 2024, the (consolidated) operating income was 798 million yuan, 997 million yuan, 1.255 billion yuan, 1.42 billion yuan, and 1.379 billion yuan, respectively, with net profits of 216 million yuan, not listed, 163 million yuan, 346 million yuan, and 376 million yuan. Based on the maximum estimate, the compensation could be nearly one-third of the company’s 2024 revenue and exceed its annual net profit, demonstrating strong investor protection efforts.

Protecting the legitimate rights and interests of small and medium investors, with efficient online processing

Let’s revisit the special plan released by Guotou Ruixin earlier this year.

Previously, due to historic extreme market conditions in the silver market, Guotou Ruixin Fund adjusted the valuation of its silver LOF to ensure fair treatment for all investors and prevent “first redemption advantage.” The related announcement drew significant investor attention.

On February 15, just before the Spring Festival, Guotou Ruixin announced the industry’s first compensation plan. For the silver LOF, a tiered compensation approach was adopted to fully cover affected individual investors, with a focus on protecting small and medium investors, allowing each investor to directly compare their situation and confirm the compensation amount.

The compensation rules are clearly tiered:

1. For individual investors affected by valuation adjustments (from -17% to -31.5%) with impact amounts below 1,000 yuan, full compensation will be paid based on the actual impact.

2. For those with impact amounts exceeding 1,000 yuan (including), the total compensation will be calculated by adding 1,000 yuan plus the excess over 1,000 yuan multiplied by a certain rate.

This design is based on data analysis: investors with larger investments tend to profit more during early product appreciation, and the valuation adjustment has a relatively limited impact on them. The tiered approach ensures fairness while prioritizing protection for small and medium investors with weaker risk resistance.

The scope of application is precisely defined: only natural persons who submit redemption applications and confirm during the period from after market close on January 30, 2026, to before market close on February 2, 2026, are eligible. Institutional investors, due to their stronger professional capabilities and risk tolerance, are excluded, ensuring resources are focused on ordinary investors.

The sincerity is also reflected in the efficiency of implementation. The reporter learned that the dedicated compensation mini-program developed in cooperation with Alipay has been completed and will be officially launched on February 26. Investors can simply search for “Guotou Ruixin Silver Fund” mini-program on Alipay, verify their identity as prompted, and complete the process online. The compensation funds will be quickly transferred, minimizing the effort and cost for investors.

This announcement from Guotou Investment also shows the high importance placed by shareholders on protecting investors’ rights and their full support with real funds.

Industry experts believe that the coverage, compensation ratio, and implementation speed of this plan are among the best in the securities, fund, and broader financial industries, fully demonstrating the fund company’s proactive response to investor demands and its responsibility to safeguard the interests of small and medium investors.

Daily Economic News