Jiangxi Guoguang Commercial Chains Co.,Ltd. (605188.SH, stock price 21.95 yuan, market cap 11.005 billion yuan) announced on the evening of September 4 that one of the company's actual controllers and chairman, Hu Jingen, plans to reduce his holdings by no more than 12.506 million shares through centralized bidding or block trading, representing no more than 2.49% of the company's total share capital. Another actual controller, director and deputy general manager Hu Chunxiang, plans to reduce her holdings by no more than 2.506 million shares through centralized bidding, representing no more than 0.5% of the company's total share capital. The two plan to reduce their combined holdings by no more than 2.99%.
According to the announcement, Hu Jingen and Hu Chunxiang are siblings, and both cited "personal capital needs" as the reason for the share reduction. The reduction period is scheduled from September 26, 2025, to December 25, 2025. However, the implementation of this share reduction plan will not lead to changes in the company's control structure and will not have a significant impact on corporate governance or continuous operations. Additionally, this marks the first share reduction plan disclosed by Hu Jingen and Hu Chunxiang since Jiangxi Guoguang Commercial Chains went public in 2018.
**Potential Combined Cash-Out Exceeds 300 Million Yuan**
According to company records, Jiangxi Guoguang Commercial Chains was established in November 2005, with headquarters in Ji'an City, Jiangxi Province. Its main business involves operating chain supermarkets and department stores, with stores distributed across Ji'an, Ganzhou, and Yichun cities. The company went public on the Shanghai Stock Exchange main board in July 2020.
Prior to the IPO, Hu Jingen began serving as chairman of Jiangxi Guoguang Commercial Chains on June 11, 2018, while Hu Chunxiang simultaneously became a company director. Before the IPO, Hu Jingen acquired 86 million shares, holding a 17.15% stake, while Hu Chunxiang acquired approximately 10.772 million shares before the IPO, holding a 2.15% stake.
This represents the first share reduction plan disclosed by Hu Jingen and Hu Chunxiang since the company went public. Based on Jiangxi Guoguang Commercial Chains' closing price of 21.95 yuan on September 4, if Hu Jingen and Hu Chunxiang execute the full reduction of 15.012 million shares during this reduction period, the two would cash out nearly 330 million yuan combined.
According to company announcements, Hu Jingen and Hu Chunxiang made three core commitments in the company's IPO prospectus: first, not to transfer pre-IPO shares within 36 months after listing; second, during their tenure, annual share transfers should not exceed 25% of total holdings, with no share transfers within six months after resignation; third, reduction prices should not be below the issue price for two years after the lock-up period expires, and if the stock price closes below the issue price for 20 consecutive trading days within six months of listing or at period-end, the lock-up period would automatically extend by six months.
Given that Jiangxi Guoguang Commercial Chains successfully went public in July 2020, the 36-month lock-up period expired in July 2023. The fact that the two are only now disclosing their reduction plan may be related to the company's recent consecutive stock price surges.
**Stock Price Once Hit Record High, Now Limit Down**
Jiangxi Guoguang Commercial Chains had an IPO issue price of 4.65 yuan in July 2020. After the IPO, the company's stock price hit multiple consecutive daily limit-ups, reaching a high of 17.73 yuan on August 12, 2020, before beginning a three-and-a-half-year period of volatile decline. On February 8, 2024, the stock price hit an intraday historical low of 4.55 yuan, falling below the 4.65 yuan issue price.
However, this year Jiangxi Guoguang Commercial Chains' stock price has experienced two major rallies: from April 14 to April 21, the company achieved six consecutive daily limit-ups, with the stock price gaining 77.22% cumulatively over six days (unadjusted); from August 20 to September 4, benefiting from retail concepts, Jiangxi Guoguang Commercial Chains experienced another accelerated rise, achieving "6 limit-ups in 12 days," with the stock price gaining 76.59% cumulatively over 12 days.
Taking a longer timeframe from August 5 to September 4 close, Jiangxi Guoguang Commercial Chains' stock price gained 103.24% cumulatively, successfully doubling.
On September 4 close, Jiangxi Guoguang Commercial Chains' stock price closed at 21.95 yuan, hitting a record high. That day, the company appeared on the Dragon-Tiger List, marking its second appearance in five trading days. The list included quantitative fund seats from CITIC Securities Shanghai Branch, UBS Securities Shanghai Huayuan Shiqiao Road Branch, and top-tier speculative capital including "Zhang Mengzhu" (generally referring to Guotai Haitong Securities Co., Ltd. Shanghai Changning District Jiangsu Road Securities Branch seat).
On September 5, as of press time, Jiangxi Guoguang Commercial Chains' stock price hit the daily limit down.
On August 26, Jiangxi Guoguang Commercial Chains disclosed its 2025 interim report. During the reporting period, the company achieved revenue of 1.448 billion yuan, up 6.50% year-on-year; net profit attributable to shareholders was 19.8979 million yuan, up 4.15% year-on-year, reversing the first quarter's declining trend.
(Disclaimer: Article content and data are for reference only and do not constitute investment advice. Investors operate at their own risk.)
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