On September 5, Hithink Royalflush Information Network Co.,Ltd. (300033.SZ) disclosed a share reduction plan by its controlling shareholder. Company's actual controller and Chairman Yi Zheng plans to reduce his holdings by 684,000 shares, while acting-in-concert party Hangzhou Kaishishun Technology Co., Ltd. will simultaneously reduce 699,100 shares, totaling 1.3831 million shares, representing 0.26% of the company's total share capital. The market reacted swiftly the day after the announcement.
On September 6, the company's stock price plummeted as much as 6.22% at market opening. By the close on September 8, the cumulative decline over five trading days reached 13.54%, closing at 343.60 yuan with market capitalization falling back to 184.7 billion yuan. Since September, over 6 trading days, Hithink Royalflush's market value has evaporated by 37.4 billion yuan.
In the announcement, Yi Zheng's explanation for the reduction motivation became a focal point. He stated in the announcement that this moderate reduction "aims to yield market participation opportunities, release liquidity, activate market vitality, and create more favorable space for subsequent market value management." This statement quickly sparked controversy among investor communities, with multiple investors on social platforms questioning the expression as "polite wording for high-level takeover," pointing out that the company's free-floating shares have reached nearly 200 million shares, current market activity is not low, and the reduction provides no substantial improvement to liquidity.
According to Hithink Royalflush's disclosure, the shares Yi Zheng plans to reduce originated from his April 2022 increase. At that time, he purchased 684,000 shares for approximately 50.09 million yuan. Based on the current reduction pre-disclosure price (closing price of 361.5 yuan/share on September 5), his paper gains amount to approximately 198 million yuan, representing a return rate of 395%. Yi Zheng currently holds 36.13% of the company's shares as the largest shareholder. After the reduction, his proportion will decrease to 36%, with company control remaining unchanged.
Wind data shows continuous main capital outflows since the evening announcement on September 5. As of the close on September 8, the company's daily main capital net outflow reached 1.027 billion yuan, with five-day cumulative net outflow totaling 3.692 billion yuan and 30-day cumulative net outflow reaching 4.327 billion yuan. On September 8, the company's trading volume was 6.534 billion yuan with a turnover rate of 6.89%, significantly higher than the industry average. Its main capital net outflow ranked 5th among Shanghai and Shenzhen markets, accounting for 15.72% of daily trading value.
From stock price performance, Hithink Royalflush's share price surged rapidly after the "831 market movement" in 2024, rising from around 90 yuan to a high of 426.88 yuan in August 2025, an increase of nearly 4 times, drawing significant attention. Wind data shows that as of September 8, the company's year-to-date gain has retreated to 20.73%, with increased price volatility over the past month. During the same period, the company's average daily trading volume exceeded 10 million yuan, showing significant signs of capital gaming.
Hithink Royalflush's half-year report shows that in the first half of 2025, the company achieved operating revenue of 1.779 billion yuan, up 28.07% year-on-year; net profit attributable to shareholders was 502 million yuan, up 38.29% year-on-year. The company's total assets were 10.332 billion yuan with a stable asset structure, showing no signs of capital constraints.
Major shareholder reduction behavior, as one of the "insider signals," is often closely watched by investors. Concentrated reduction actions during high stock price periods are particularly likely to be interpreted by the market as valuation correction nearing completion. Although this reduction proportion is relatively low and stems from previously increased holdings, the "excessive packaging" in wording still triggered public opinion volatility, becoming an important factor suppressing short-term stock price trends.
Yi Zheng defined this reduction as "staged realization to create conditions for subsequent market value management," but the market seems to expect his next proactive increase as "timely assistance." How to fulfill his commitment to "focus more on strategic core business and continuously enhance company value" will become a key focus for future observation.
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