Jiujiang Defu Technology Co.,Ltd. has recently engaged in frequent capital operations, planning to raise 19.3 billion yuan through a private placement on one hand, while major shareholders are substantially reducing their holdings on the other, creating a noteworthy "fundraising while selling" phenomenon.
On September 16, 2025, Jiujiang Defu Technology disclosed its private placement plan, proposing to issue no more than 189 million shares to raise 19.3 billion yuan. Of this amount, 14.3 billion yuan will be used to acquire 100% equity in Luxembourg Copper Foil, 2 billion yuan for electronic chemicals projects, and 3 billion yuan to supplement working capital. The pricing benchmark date for the private placement is the first day of the issuance period, with the issue price set at no less than 80% of the average price over the 20 trading days preceding the pricing benchmark date. As of September 16, the company's stock price was 35.4 yuan per share, which would set the private placement price floor at approximately 28.32 yuan per share (35.4 × 80%).
Regarding share reductions, multiple original shareholders have been gradually cashing out since 2024. According to public data, LG Chem reduced its holdings by a total of 12.84 million shares in Q3 and Q4 2024 and Q1 2025. Ganfeng Lithium also reduced its holdings by nearly 2.3 million shares in Q3 2024 and Q1 2025. In July 2025, shareholder Gansu Tuozhen Equity Investment Fund and its acting-in-concert parties announced plans to reduce holdings by no more than 21.4353 million shares (3.4% of total share capital), with an estimated cash-out value of approximately 527 million yuan based on the then-stock price of 24.6 yuan.
On August 22, Jiujiang Defu Technology's shareholders holding more than 5% - Jiujiang Fuhe Construction Investment Group Co., Ltd. and its acting-in-concert party Jiujiang Kuntai Equity Investment Fund Management Co., Ltd. - Jiujiang Defu Equity Investment Center (Limited Partnership) - planned to reduce their holdings by no more than 9,454,830 shares (1.5% of total share capital) within 3 months starting 15 trading days after the announcement disclosure, through centralized bidding or block trading.
Notably, most reduction activities occurred after significant stock price increases. Data shows that Jiujiang Defu Technology's stock price has surged 170% since the beginning of 2025, particularly accumulating a 172.99% increase from June 20 to August 13.
On September 25, Jiujiang Defu Technology's actual controller Ma Ke also announced high-level share reductions. Controlling shareholder, actual controller, and director Ma Ke directly holds 192,588,725 shares (30.55% of total share capital), director and senior manager Jiang Yang directly holds 13,300 shares (0.00% of total share capital), director and senior manager Jin Rongtao directly holds 35,000 shares (0.01% of total share capital), and senior manager Gong Kaikai directly holds 16,520 shares (0.00% of total share capital). Ma Ke, Jiang Yang, Jin Rongtao, and Gong Kaikai plan to collectively reduce their holdings by no more than 819,245 shares (0.13% of total share capital) through centralized bidding within 3 months starting 15 trading days after the announcement. Among them, Ma Ke plans to reduce 803,000 shares, with an estimated cash-out value of approximately 29.11 million yuan based on the then-stock price of 36.25 yuan.
In contrast, Jiujiang Defu Technology's proposed private placement issue price is set at no less than 80% of the average trading price over the 20 trading days preceding the pricing benchmark date. While this pricing mechanism is standard practice in the A-share market, combined with the current high stock price operation, the future private placement price will likely be lower than the current market price and significantly lower than the price levels at which major shareholders are reducing their holdings. This pricing differential may create several issues: First, profit opportunities for private placement participants - since the private placement price may be substantially below market price, investors participating in the private placement will have significant arbitrage opportunities after the lock-up period (6 months) expires. Second, timing of shareholder reductions - original shareholders choosing to reduce holdings at high stock prices just before the private placement may reflect their judgment on short-term stock price trends. Third, impact on minority shareholders - the low private placement price may create earnings per share dilution effects, while high-level shareholder reductions may be interpreted by the market as lack of confidence, both potentially affecting minority shareholder interests.
From a market reaction perspective, the pricing differential between Jiujiang Defu Technology's shareholder reductions and private placement plans somewhat reflects that the current stock price may already be overvalued. With the company's stock price soaring nearly 200% in just three months, venture capital institutions choosing "precision exits" under this backdrop aims to maximize investment returns. However, such large-scale reductions parallel with low-price private placements require regulatory attention regarding potential harm to minority investor interests.
The company reported revenue of 5.299 billion yuan in the first half of the year, a 66.82% year-over-year increase, with net profit attributable to parent company of 38.7062 million yuan, turning from loss to profit year-over-year. While performance appears to have improved significantly, net cash flow from operating activities was -570 million yuan, remaining negative for multiple consecutive years, reflecting insufficient actual cash-generating capability.
In 2021, 2022, 2023, and 2024, net cash flows from operating activities were -310 million yuan, -372 million yuan, -477 million yuan, and -550 million yuan, respectively.
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