On September 6, A-share listed company Hithink Royalflush Information Network Co.,Ltd. (300033) announced that its controlling shareholder and chairman Yi Zheng, along with persons acting in concert, plan to reduce their holdings by no more than 1.3831 million shares within the next three months, representing 0.26% of the company's total share capital. Based on the closing price of 361.5 yuan on the announcement date, this reduction could generate proceeds of up to 500 million yuan, with Yi Zheng personally cashing out 248 million yuan.
Regarding the reduction rationale, the announcement explained that Kaishishun cited "personal funding needs," while Yi Zheng's reasoning was notably unique: first, "phased accumulation targets have been successfully completed," and second, "transferring market participation opportunities to release liquidity and activate market vitality." This explanation quickly sparked heated discussions.
**"Opportunity Transfer" Reduction Rationale Draws Mixed Market Response**
The reduction rationale from Hithink Royalflush's controlling shareholder Yi Zheng has generated widespread discussion. In the announcement, he stated that the reduction aims to "optimize the company's strategic layout and reward shareholder trust," emphasizing "transferring market opportunities to investors."
The reduction news immediately ignited enthusiastic discussions among investors on stock forums. Some investors joked that this was a "high-level takeover invitation," while other shareholders commented, "If I were a shareholder, I'd want to sell the company to you all - selling at this price would be extremely profitable." "Reduce if you want to reduce, but the way this is phrased sounds like some kind of favor to us."
The market shows significant divergence regarding the impact of this reduction. Optimists believe "negative factors are exhausted" and expect the stock to gap up on Monday; pessimists anticipate a significant gap down.
Hithink Royalflush is not the first listed company to cite "improving liquidity" as a reduction rationale. In June 2025, pharmaceutical company Kexing's controlling shareholder Keyi Medicine announced plans to reduce holdings by no more than 3%, with an equally attention-grabbing reason - "optimizing the company's equity structure and increasing secondary market liquidity."
This rationale faced widespread market skepticism and extremely negative market reaction. The day after the reduction announcement (June 5), Kexing's stock price fell 8.51%, marking the company's largest decline in nearly a month. The stock price dropped from 56.07 yuan per share to 51.61 yuan per share, with total market value evaporating approximately 500 million yuan.
In fact, the A-share market has seen various unusual reduction rationales in recent years: improving personal lifestyle, paying children's tuition fees, marriage, divorce, and others. Regardless of how diverse the reduction reasons may be, the market ultimately interprets them as negative signals. Historical experience shows that major shareholder reductions often significantly impact market sentiment.
**Strong Performance with Cyclical Revenue Structure**
Notably, Hithink Royalflush delivered impressive results for the first half of 2025. The interim report showed total operating revenue of 1.78 billion yuan, up 28.1% year-over-year, and net profit attributable to shareholders of 500 million yuan, up 38.3% year-over-year.
By business segment, value-added telecommunications services generated revenue of 860 million yuan, up 11.9% year-over-year; advertising and internet business revenue reached 640 million yuan, surging 83.2%; software sales and maintenance business revenue was 110 million yuan, up 7.7%; fund sales and other business revenue was 170 million yuan, remaining essentially flat.
The performance growth was mainly driven by two factors: strong A-share market performance boosting investor demand for financial information services, and the company leveraging AI concepts to achieve valuation premiums.
Industry insiders point out that Hithink Royalflush's business structure indicates its performance is highly correlated with stock market conditions. Value-added telecommunications business contributes 48.3% of revenue, advertising and promotion business accounts for 36%, while software and fund sales businesses combined represent less than 20%.
Analysis indicates that the company's core revenue still relies on financial information and data services, with performance fluctuations highly correlated to stock market trends. Five-year interim performance data shows significant profit growth during bull markets and declines during bear markets, making this cyclical characteristic a key indicator for judging the company's future trajectory.
**Controlling Shareholder's Net Worth Reaches 70 Billion Yuan, Monday's Stock Performance Becomes Focus**
Public information shows that Yi Zheng's 684,000 shares being reduced were purchased at low levels in April 2022 at a cost of approximately 50.09 million yuan. Over three years, the paper gains reached 198 million yuan, representing an investment return rate of 395%. This precise high-selling, low-buying operation has been dubbed "stock god-level reduction" by investors.
From Hithink Royalflush's equity structure perspective, as of June 30, 2025, Yi Zheng holds 36.13%, Ye Qiongjiu holds 11.11%, Hangzhou Kaishishun Technology Co., Ltd. holds 8.96%, Yu Haomiao holds 4.95%, and Wang Jin holds 3.48%. Based on the market value of 194.3 billion yuan on September 5, Yi Zheng's net worth reaches 70 billion yuan.
In the secondary market, during the first four trading days of September, Hithink Royalflush's stock price declined for four consecutive days, with cumulative decline of 12.84%. One fund under Invesco Great Wall Fund heavily invested in 342,900 shares of Hithink Royalflush, suffering paper losses of 18.1894 million yuan in just four days.
Following the announcement of the reduction plan by company controlling shareholder and chairman Yi Zheng and persons acting in concert, Hithink Royalflush's Monday stock performance undoubtedly becomes a market focus.
Comments