Recently, the chairman of Hithink Royalflush Information Network Co.,Ltd. announced a share reduction plan, intending to reduce holdings of no more than 684,000 shares, representing 0.13% of the company's total share capital. His stated reason for the reduction has drawn significant market attention: "Through moderate share reduction, we aim to yield market participation opportunities, release liquidity, and activate market vitality."
According to reports, the 684,000 shares that the Hithink Royalflush chairman plans to reduce were acquired through his previous share purchases. In April 2022, the chairman spent 50.099 million yuan to increase his holdings by 684,000 shares. Based on last Friday's closing price of 361.5 yuan per share, his acquired portion has already generated nearly 200 million yuan in profits.
**01 Hithink Royalflush Chairman Plans Share Reduction**
On the evening of September 5th, Hithink Royalflush issued a pre-disclosure announcement regarding shareholder share reduction. The announcement stated that the company recently received notice from controlling shareholder, actual controller, and chairman Yi Zheng, as well as shareholder Kaisishun, regarding their share reduction plans for Zhejiang Hexin Hithink Royalflush Network Information Co., Ltd.
According to the announcement, the company's controlling shareholder, actual controller, major shareholder holding 36.13% of company shares, and chairman Yi Zheng, along with shareholder Hangzhou Kaisishun Technology Co., Ltd. (holding 8.96% of company shares), plan to reduce their combined holdings by no more than 1.3831 million shares (representing 0.26% of total share capital) within three months after 15 trading days from the announcement date (September 29, 2025 - December 28, 2025), through centralized bidding or block trading methods.
Regarding the purpose of the reduction, the announcement stated that actual controller Yi Zheng has successfully completed his phased share increase targets. His previous low-position purchases effectively stabilized the stock price, and the current reduction implements predetermined objectives. The actual controller will optimize personal resource allocation through the share reduction, focusing more energy on the company's strategic layout and core business development, helping sustain company value growth to reward shareholders' long-term trust. Simultaneously, through moderate reduction, the aim is to yield market participation opportunities, release liquidity, activate market vitality, and create more favorable conditions for subsequent market value management.
Shareholder Kaisishun's reduction is for its own capital needs.
The announcement also explained the source of shares to be reduced. 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 for reduction are pre-IPO shares.
Specifically, Yi Zheng plans to reduce holdings by no more than 684,000 shares, representing 0.13% of total share capital. After this reduction, the actual controller's shareholding ratio will be 36%, with no significant change in control. Kaisishun plans to reduce holdings by no more than 699,100 shares, representing 0.13% of total share capital.
On April 28, 2022, Hithink Royalflush issued a shareholder share increase announcement.
The announcement stated that 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, with plans to increase holdings within six months from April 28, 2022, through centralized bidding, with cumulative increase amounts (including this transaction) of no less than 50 million yuan. Yi Zheng would implement subsequent increase plans based on company stock price fluctuations and overall capital market trends.
**02 First Half Revenue Reaches 17.79 Billion Yuan**
Founded in 2001, Hithink Royalflush is China's first listed internet financial information services company. As a leading domestic internet financial information service provider, the company maintains a complete industrial chain, with customers spanning all levels of financial market participants.
Company business and revenue composition: As of the end of 2024, value-added telecommunications services generated 16.16 billion yuan in revenue, accounting for 38.59% of total revenue; advertising and internet promotion services generated 20.25 billion yuan, representing 48.36% of revenue; fund sales and other transaction fees generated 190 million yuan, accounting for 4.54%; software sales and maintenance services generated 356 million yuan, representing 8.5% of company revenue.
Hithink Royalflush's interim report shows the company achieved revenue of 17.79 billion yuan in the first half, up 28.07% year-on-year; net profit attributable to listed company shareholders reached 502 million yuan, up 38.29% year-on-year; the company proposes distributing 1 yuan in cash dividends per 10 shares to all shareholders (including tax).
Hithink Royalflush noted that due to capital market recovery, website and app user activity increased, driving growth in advertising and internet promotion service revenue. Meanwhile, investor demand for financial information services rose, leading to increased value-added telecommunications revenue. Consequently, the company achieved substantial revenue and net profit growth during the reporting period.
Since September 24 last year, Hithink Royalflush's stock price has accumulated gains exceeding 260%, reaching a high of 426.88 yuan per share, with the latest closing price at 361.5 yuan per share.
The 2025 New Fortune 500 Wealth Creation List shows that in 2024, Hithink Royalflush invested nearly 30% of revenue in R&D, focusing particularly on large models, computing power, and high-end talent recruitment, forming a comprehensive AI product matrix. By year-end, its market value exceeded 150 billion yuan, contributing 4 wealthy individuals to the list. Founder Yi Zheng ranked 56th with 55.8 billion yuan net worth, while executives Ye Qiongjiu, Wang Jin, and Yu Haomiao also made the list with net worths of 23.1 billion, 10.7 billion, and 7.7 billion yuan respectively, with the latter two appearing for the first time in years.
Guosen Securities research report states that Hithink Royalflush's performance is highly correlated with market trading activity. Under active market trading conditions, the company can achieve comprehensive improvements in business scale, user numbers, payment rates, and customer unit prices.
Kaiyuan Securities research report indicates that Hithink Royalflush continues optimizing and upgrading its Wencai Hithink GPT large model, with further enhancements in text generation, logical reasoning, multimodal understanding, and intelligent agent applications. The company has upgraded multiple intelligent products, with the Wencai Investment Assistant evolving from a single reasoning model to an autonomous planning and reasoning intelligent agent. The new generation product possesses multi-step autonomous planning capabilities, achieving "thinking, checking, and searching" during the thought process. AI empowerment is expected to unlock growth potential.
Founder Securities research report notes that considering Hithink Royalflush's C-end software revenue recognition based on履约进度 and导流业务通常在第四季度确认较多收入, the performance increases from this round of market prosperity improvement are expected to gradually materialize in the second half of the year. The report is optimistic about value-added telecommunications and advertising导流业务maintaining high growth momentum in the second half. As a leading financial AI enterprise, Hithink Royalflush demonstrates strong elasticity in value-added telecommunications services and advertising导流core businesses under high trading activity, with continued AI investment building long-term growth momentum.
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