(Yicai Global) May 18 -- Deluxe Family's shares jumped by their daily limit for the second time in the last three trading days after all of the Chinese property developer’s proposals were shot down by its second-largest shareholder, Xu Xiang's private equity firm Zexi Investment Management.

Deluxe Family [SHA: 600503] finished almost 10 percent up at CNY3.43 (49 US cents) per share in Shanghai today, bringing this week’s gain to 22 percent.

The 21 proposals that Deluxe Family put before a meeting of shareholders yesterday, including the review of its 2022 earnings report and dividend plans, failed to pass. Xu, once known as ‘China’s Carl Icahn’ for his investment prowess, had Zexi send a representative to the meeting, who vetoed all the proposals, a person familiar with the matter told Yicai Global.

Deluxe Family's profit fell for a third consecutive year in 2022 amid a sluggish real estate market. Net profit sank 21 percent to CNY76.5 million (USD10.9 million) in the 12 months ended Dec. 31 from the year before and revenue plunged 60 percent to CNY211 million, its annual earnings report showed on April 27.

In a recent interview with Chinese news portal Ifeng.com, Xu expressed his dissatisfaction with Deluxe Family's operating conditions after it rejected his nominee to the firm’s board of directors. That disagreement led to the public breakup at yesterday’s shareholders’ meeting.

Zexi bought 90 million of Shanghai-based Deluxe Family's shares for CNY330 million (USD47 million) at the end of 2013, taking a 5.6 percent stake in the builder.

In 2015, Xu was jailed for insider trading and market manipulation and was released in 2021.  Shares of Deluxe Family dived during his time in prison, plunging 90 percent from a record high in 2015 and resulting in Zexi's stake shrinking in value to about CNY300 million.

Editors: Dou Shicong, Martin Kadiev