In an early morning announcement today, Hithink Royalflush Information Network Co.,Ltd. disclosed that Chairman Yi Zheng has decided to terminate his share reduction plan early due to various factors. The reduction plan had not yet been implemented. Since the company's listing nearly 16 years ago, Chairman Yi Zheng has never reduced his shareholding in the company.
Last Friday after market close, the chairman of Hithink Royalflush announced plans to reduce his holdings by 684,000 shares. His stated reason for the reduction drew widespread market attention, as he cited "yielding market participation opportunities through moderate reduction." The proposed reduction of 684,000 shares originated from Yi Zheng's 2022 purchase, which cost approximately 50 million yuan and has now generated profits of nearly 200 million yuan.
On September 8, the first trading day after the reduction announcement, Hithink Royalflush stock price declined 4.95%. Chairman Yi Zheng currently holds 36.13% of the company. On September 9, Hithink Royalflush opened higher, with gains of 2.42% as of press time.
**Early Termination of Reduction Plan**
In the early hours of September 9, Hithink Royalflush released an "Announcement Regarding the Controlling Shareholder's Non-reduction of Company Shares and Early Termination of the Reduction Plan."
The announcement stated that the company published a pre-disclosure notice on September 6, 2025, regarding the controlling shareholder and shareholders holding more than 5% planning to reduce their stakes. The controlling shareholder, actual controller, and Chairman Yi Zheng planned to reduce no more than 684,000 shares, representing 0.13% of the company's total share capital.
These shares were acquired by Yi Zheng on April 28, 2022, through secondary market purchases when market conditions continued to decline and the company's stock price was severely undervalued, aimed at stabilizing the share price.
"Due to various factors, Yi Zheng has decided to terminate this reduction plan early and has issued a 'Notice Letter Regarding Non-reduction of Company Shares and Early Termination of the Reduction Plan' to the company," the announcement stated.
The announcement also noted that since the company's listing on December 25, 2009, nearly 16 years ago, actual controller Yi Zheng has never reduced his company shareholding. This reduction plan was pre-disclosed according to relevant regulations, and as of this announcement's disclosure date, the reduction plan had not been implemented and was decided to be terminated early.
The early termination of the reduction plan does not violate any disclosed reduction plans or related commitments and will not result in changes to the company's control structure.
According to the 2025 interim report, Hithink Royalflush achieved revenue of 1.779 billion yuan in the first half of the year, up 28.07% year-over-year, and net profit attributable to parent company of 502 million yuan, up 38.29% year-over-year.
The company stated in its financial report that the revenue and net profit growth in the first half of this year was mainly due to the capital market recovery, which led to increased user activity on the company's website and app, resulting in higher advertising and internet promotion service revenue. Meanwhile, investors' demand for financial information services increased, leading to growth in value-added telecommunications business revenue.
**Reduction Announcement Last Friday**
Just a few days ago, on the evening of September 5, Hithink Royalflush released a shareholder reduction pre-disclosure announcement. The company received notification letters from controlling shareholder, actual controller, and Chairman Yi Zheng, as well as shareholder Kaisishun regarding their share reduction plans.
The announcement stated that controlling shareholder, actual controller, and Chairman Yi Zheng (holding 36.13% of company shares), and shareholder Hangzhou Kaisishun Technology Co., Ltd. (holding 8.96% of company shares), planned to reduce their combined holdings by no more than 1.3831 million shares (0.26% of total share capital) through centralized bidding or block trading within three months starting 15 trading days after the announcement (September 29, 2025 - December 28, 2025).
Regarding the reduction purpose, the announcement stated that actual controller Yi Zheng's phased increase target had been successfully completed. Previous low-position purchases effectively stabilized the stock price, and the current reduction was implementing the predetermined goal. The actual controller would optimize personal resource allocation through the reduction, focusing more energy on the company's strategic layout and main business development to help continuously enhance company value and reward shareholders' long-term trust.
Additionally, through moderate reduction, the aim was to yield market participation opportunities, release liquidity, activate market vitality, and create more favorable space for subsequent market value management.
Shareholder Kaisishun's reduction was for its own funding needs.
Regarding the source of shares to be reduced, the announcement provided clarification. Yi Zheng's shares were acquired through secondary market purchases. On April 28, 2022, Yi Zheng accumulated 684,000 company shares through centralized bidding transactions, representing 0.13% of total share capital. Kaisishun's shares were pre-IPO shares.
Specifically, Yi Zheng planned to reduce no more than 684,000 shares, representing 0.13% of total share capital. After this reduction, the actual controller's shareholding ratio would be 36.00%, with no significant change in control. Kaisishun planned to reduce no more than 699,100 shares, representing 0.13% of total share capital.
**Share Purchase Three Years Ago**
On April 28, 2022, Hithink Royalflush released a shareholder increase announcement. The company's controlling shareholder, actual controller, chairman, and general manager Yi Zheng accumulated 684,000 company shares through centralized bidding transactions on April 28, 2022, representing 0.13% of total share capital, and planned to increase holdings within six months from April 28, 2022, through centralized bidding, with cumulative increase amount (including this transaction) of no less than 50 million yuan.
Yi Zheng would subsequently implement the increase plan based on company stock price fluctuations and overall capital market trends.
On November 1, 2022, Hithink Royalflush announced that as of the announcement date, Yi Zheng had increased his holdings by 684,000 shares through his personal stock account, representing 0.13% of total share capital, with an increase amount of 50.099 million yuan, completing the increase plan.
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