(Yicai Global) Oct. 31 -- Shares in Longfor Group Holdings plunged as much as 44.6 percent today after the Chinese developer said that its billionaire founder and chairwoman is leaving the board after 29 years at the helm.

Longfor’s share price [HKG:0960] closed down 23.7 percent at HKD10 (USD1.27). Earlier in the day it sank to HKD7.26, the lowest since May 2017. The stock has lost 78 percent of its value in the past nine months.

Wu Yajun, who is also executive director, is stepping down from all her positions on the company board due to age and health-related reasons, the Beijing-based firm said on Oct. 28. She will remain as a strategic consultant to advise on Longfor’s development and operations.

58-year-old Wu will be replaced as board chair by Chief Executive Officer Chen Xuping, who has experienced a meteoric rise through the ranks since he joined the company as a fresh graduate in 2008.

“It is in the best interests of the company at the present stage to vest the roles of chairperson of the board and chief executive in the same person as this helps facilitate the execution of the group’s business strategies and maximize the effectiveness of its operation,” Longfor said.

“There is no disagreement with the board and no other matter relating to Wu’s resignation that needs to be brought to the attention of shareholders or the stock exchange,” Longfor said.

Wu, one of the world’s richest self-made women according to Forbes magazine, set up Longfor with her then-husband in 1993 and together they built it into a real estate empire.

As chairwoman since 2007, Wu has succeeded in steering the developer through some difficult times. Longfor has managed to comply with China’s debt requirements over the past six years and is one of just seven Chinese developers to be deemed 'investment grade' by all major rating agencies. S&P Global Ratings affirmed a 'BBB' grading for Longfor with a stable outlook on Oct. 21.

Thanks to its good credit record, Longfor is one of only a handful of developers that have been provided unconditional loan guarantees by state-owned China Bond Insurance to help it overcome its financing difficulties.

40-year-old Chen drew praise from Wu in August when she said his performance as CEO exceeded her expectations. He served in a number of roles in the company, including project engineering department manager and project general manager, before becoming general manager of Longfor's arm in Chengdu, southwestern Sichuan province in 2016. During his tenure as GM, the Chengdu unit’s annual real estate transactions more than tripled to CNY18 billion (USD2.5 billion).

Longfor logged a 6 percent jump in net profit in the first half from the same period last year to CNY6.6 billion (USD904.2 million) while revenue soared 56.4 percent to CNY94.8 billion (USD12.9 billion), according to the firm's interim results released in August.

Editors: Tang Shihua, Kim Taylor