Recently, the chairman of Hithink Royalflush Information Network Co.,Ltd. issued a share reduction announcement, planning to reduce holdings of no more than 684,000 shares, representing 0.13% of the company's total share capital. The reasoning behind the reduction has attracted significant market attention: "Through moderate share reduction, we aim to transfer market participation opportunities, release liquidity, and activate market vitality."
According to reports, the 684,000 shares that the Hithink Royalflush chairman plans to reduce originated from his previous share purchases. In April 2022, the chairman spent 50.0999 million yuan to increase his holdings by 684,000 shares. Based on Friday's closing price of 361.5 yuan per share, this portion of increased holdings has already generated profits of nearly 200 million yuan.
On the evening of September 5th, Hithink Royalflush released a shareholder reduction pre-disclosure announcement. The announcement stated that the company recently received notices from controlling shareholder, actual controller, and chairman Yi Zheng, as well as shareholder Kaishishun regarding their share reduction plans for Zhejiang Hexin Hithink Royalflush Information Network Co., Ltd.
According to the announcement, controlling shareholder, actual controller, major shareholder holding 36.13% of company shares, and chairman Yi Zheng, along with shareholder Hangzhou Kaishishun Technology Co., Ltd. (hereinafter "Kaishishun") holding 8.96% of company shares, plan to collectively reduce holdings of no more than 1.3831 million shares (representing 0.26% of total share capital) within three months starting 15 trading days after this announcement's release (September 29, 2025 to December 28, 2025), through centralized bidding or block trading methods.
Regarding the reduction purpose, the announcement stated that actual controller Yi Zheng's phased increase target has been successfully completed. Previous low-position purchases effectively stabilized stock prices, and the current reduction represents the implementation of predetermined objectives. The actual controller will optimize personal resource allocation through this reduction, focusing more energy on the company's strategic layout and core business development, supporting continuous company value enhancement to reward shareholders' long-term trust. Simultaneously, through moderate reduction, the aim is to transfer market participation opportunities, release liquidity, activate market vitality, and create more favorable conditions for subsequent market value management. Shareholder Kaishishun's reduction is for its own capital needs.
The announcement also explained the sources of shares to be reduced. Yi Zheng's shares were acquired through secondary market purchases. On April 28, 2022, Yi Zheng cumulatively increased holdings of 684,000 company shares through centralized bidding, representing 0.13% of total share capital. Kaishishun's shares are from before the company's initial public offering.
Specifically, Yi Zheng plans to reduce holdings of no more than 684,000 shares, representing 0.13% of total share capital. After this reduction, the actual controller's shareholding ratio will be 36.00%, with no significant change in control. Kaishishun plans to reduce holdings of no more than 699,100 shares, representing 0.13% of total share capital.
On April 28, 2022, Hithink Royalflush released a shareholder increase announcement stating that controlling shareholder, actual controller, chairman and general manager Yi Zheng cumulatively increased holdings of 684,000 company shares on April 28, 2022, through centralized bidding, representing 0.13% of total share capital. The plan was to increase holdings through centralized bidding within six months starting April 28, 2022, 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 holdings of 684,000 shares through his personal stock account, representing 0.13% of total share capital, with an increase amount of 50.0999 million yuan, completing the increase plan.
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