As the A-share semiconductor sector continues its hot streak, shareholders of multiple companies have collectively announced plans to reduce their holdings.
On the evening of May 22nd, several listed companies in the semiconductor industry chain, including Advanced Micro-Fabrication Equipment Inc. China (688012.SH), Montage Technology Co.,Ltd. (688008.SH), Asr Microelectronics Co.,Ltd. (688220.SH), Everprox Technologies Co.,Ltd. (300548.SZ), Jiangsu Cai Qin Technology Co.,Ltd. (688182.SH), and Crystal Growth&Energy Equipment Inc. (688478.SH), disclosed shareholder reduction plans. These companies are leading players across various segments such as semiconductor equipment, chip design, and materials.
This wave of sell-offs comes against the backdrop of a significant recent surge in the semiconductor sector. This week, semiconductors have become the strongest theme in the A-share market, with numerous stocks in the sector experiencing consecutive sharp gains. On the 21st, the CSI Semiconductor Chip Index hit a record high of 18,676.56 points, and the STAR 50 Index also reached a new historical high on the same day. At the individual stock level, 46 semiconductor stocks hit all-time highs this week, primarily concentrated in the equipment, materials, and design segments. Advanced Micro-Fabrication Equipment Inc. China and Montage Technology Co.,Ltd. both reached new historical highs this week, with AMEC's market capitalization briefly exceeding 300 billion yuan. Asr Microelectronics Co.,Ltd. saw its intraday high reach 129.49 yuan on the 21st, just 0.62 yuan shy of its all-time high set on its listing day (130.11 yuan). The stock has surged 72.5% cumulatively since April. Influenced by market enthusiasm for silicon carbide concepts, Crystal Growth&Energy Equipment Inc. has also seen its stock price soar 134% since April, reaching a record high of 79.9 yuan on May 15th.
A notable feature of these reduction announcements is that several companies have opted for the inquiry transfer method. Montage Technology Co.,Ltd., Jiangsu Cai Qin Technology Co.,Ltd., and Crystal Growth&Energy Equipment Inc. all released shareholder inquiry transfer plans, rather than traditional announcements for reductions via centralized bidding or block trades.
Compared to ordinary reduction methods, inquiry transfer has distinct characteristics. Firstly, it is targeted solely at professional institutional investors, not involving retail investors in the secondary market, resulting in a smaller direct impact on the stock price. Secondly, shares acquired by transferees through inquiry transfer are subject to a six-month lock-up period, avoiding short-term selling pressure and reducing disruption to secondary market prices.
Apart from the three companies using inquiry transfer, the remaining four companies have chosen traditional reduction methods. Everprox Technologies Co.,Ltd., Semitronix Corporation (301095.SZ), Advanced Micro-Fabrication Equipment Inc. China, and Asr Microelectronics Co.,Ltd. all announced that shareholders would reduce holdings through a combination of centralized bidding and block trades. Among them, Advanced Micro-Fabrication Equipment Inc. China simultaneously released two announcements: one for a major shareholder reduction plan and another for a reduction plan by directors, supervisors, and senior management, involving seven executives including Chairman Yin Zhiyao.
Based on the latest closing prices, the total planned reduction scale for the aforementioned seven companies is estimated at 12.692 billion yuan. The semiconductor equipment leader, Advanced Micro-Fabrication Equipment Inc. China, has the largest planned reduction scale, amounting to 6 billion yuan.
The memory interface chip leader, Montage Technology Co.,Ltd., has the second-largest reduction scale. Shareholders plan to reduce holdings worth up to 3.324 billion yuan.
Alibaba is once again reducing its stake in Asr Microelectronics Co.,Ltd. after a six-month interval. As the company's largest shareholder, Alibaba plans to sell no more than 12.549 million shares, representing 3% of the total share capital. Based on the latest closing price of 115.75 yuan, the reduction amount is approximately 1.453 billion yuan.
The reduction scales for the other companies are relatively smaller. The actual controller of Semitronix Corporation and their concert parties, directors, and senior management plan to collectively reduce no more than 3.6525 million shares, accounting for 1.85% of the total share capital, corresponding to an amount of about 376 million yuan.
Shareholders Zhu Wei and his spouse Wang Xiaohong of "ten-bagger" stock Everprox Technologies Co.,Ltd. plan to reduce no more than 4 million shares, representing 1.37% of the total share capital, corresponding to an amount of about 961 million yuan.
Jiangsu Cai Qin Technology Co.,Ltd. hit a record high of 46.6 yuan on May 20th. On the evening of the 22nd, the company released a reduction plan where two shareholders plan to collectively transfer 9.7678 million shares via inquiry, corresponding to an amount of about 383 million yuan.
Similarly, for Crystal Growth&Energy Equipment Inc., shareholder Xinrui Jicheng (Xiamen) Venture Capital Partnership (Limited Partnership) plans to transfer 2.7673 million shares via inquiry, corresponding to an amount of about 185 million yuan.
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