Recent market conditions have remained positive, with the Shanghai Composite Index breaking through four-year highs, and individual stocks rising accordingly. However, amid the strong market sentiment, listed company major shareholders and executives have announced share reduction plans. How should ordinary investors interpret such reduction activities?
On one hand, share reduction represents shareholders exercising normal property rights. As long as reduction activities are based on principles of fairness, justice, transparency, and compliance, shareholders have the right to exercise legitimate interests.
On the other hand, due to information asymmetry in capital markets, insiders such as major shareholders or executives of listed companies may provide reference signals for ordinary investors through their reduction activities. Could their reduction behavior indicate lack of confidence in the company's future development, or suggest that current stock prices may be overvalued beyond fundamental support? Such "insider" reduction signals may warrant close investor attention.
Based on this background, we will conduct a series of reviews on recent corporate share reductions.
Recently, Focus Technology Co.,Ltd.'s actual controller announced reduction plans. Notably, Focus Technology Co.,Ltd. achieved double growth in revenue and net profit in the first half of this year, with stock prices reaching new highs. The actual controller's announcement of reduction plans at this time may require ordinary investors to be cautious about potential high-level positioning.
**Share Reduction After New High - Dominant Shareholding Raises Dividend Concerns**
The company's stock price reached historical highs in August, breaking through 57 yuan per share. Currently, the stock price stands at 46.7 yuan per share.
However, less than a month after the stock hit new highs, the actual controller and company directors announced coordinated reduction plans.
According to September 13 announcements, controlling shareholder Mr. Shen Jinhua holds 147,247,358 shares (46.42% of total share capital). He plans to reduce holdings by no more than 6,344,716 shares (no more than 2% of total share capital) through centralized bidding and block trading within 90 natural days starting fifteen trading days after the announcement (from October 14, 2025, to January 12, 2026). Based on 48 yuan per share, the cash-out amount would be approximately 300 million yuan.
Additionally, company director Mr. Huang Liangfa holds 4,480,000 shares (1.41% of total share capital) and plans to reduce holdings by no more than 1,120,000 shares (no more than 0.35% of total share capital) within the same timeframe through centralized bidding and block trading.
It should be noted that the company's actual controller maintains dominant shareholding. Among the top ten shareholders, his stake is 46.42%, while the second-largest shareholder holds only 2.26%.
Under this dominant shareholding governance structure, the company has been generous with annual cash dividends. Historical data shows the company achieved cash dividend ratios as high as 208% in some years, with multiple years exceeding 100%. High dividend ratios help improve investor returns. However, under dominant shareholding governance, nearly half of high-ratio cash dividends flow primarily to the actual controller.
**Hidden Concerns Behind High Performance Growth - Struggling Paid Membership Growth**
In the first half of this year, the company achieved double growth in revenue and net profit.
During the reporting period, consolidated revenue reached 919 million yuan, up 15.83% year-over-year. Operating profit and total profit both reached 314 million yuan, up 26.05% and 26.91% respectively. Net profit attributable to listed company shareholders and net profit excluding non-recurring items reached 295 million yuan and 286 million yuan respectively, up 26.12% and 24.17% year-over-year, mainly due to steady growth in core Made-in-China.com business revenue. Net assets per share attributable to listed company shareholders reached 8.38 yuan, up 5.81% from year-end.
The company's performance growth has been volatile, with peak growth rates exceeding 20%. From 2022 to 2024, revenue growth remained in single digits. This year's first half marked the first double-digit growth, requiring further observation for sustainability.
Regarding business structure, the company's foundation is Made-in-China.com business, accounting for over 80% of revenue. In the first half of 2025, Made-in-China.com actively implemented various traffic optimization measures. Through website performance upgrades, multi-language site optimization, phased improvement of website content quality, and traffic strategy optimization, the platform successfully achieved 35% year-over-year traffic growth. Key emerging markets performed particularly well: Middle East traffic grew 45%, South America increased 43%, Europe climbed 41%, South Asia grew 39%, and Africa increased 35%.
Notably, the platform's paid membership growth appears challenging. At the end of the first half reporting period, Made-in-China.com had 28,699 paid members; as of March 31, 2025, the platform had 28,118 paid members. This means second-quarter membership growth was only 581 members compared to the first quarter, down from 716 members in the same period last year.
In April 2023, as one of the first domestic companies to complete AGI technology innovation in foreign trade verticals, the company launched AI Agent product "AI Mike" for Made-in-China.com seller members. As of June 30, 2025, over 13,000 members had purchased AI Mike (excluding trial packages). We note that the company previously disclosed related cash income in annual reports, but this data was not disclosed in this year's first half. Focus Technology Co.,Ltd. also plans to launch buyer-side tool "Sourcing AI" in the second half of 2025.
In cross-border e-commerce business, Focus Technology Co.,Ltd. has gradually expanded from North American markets to emerging regions like Southeast Asia, forming a "inQbrands supply chain services + Doba dropshipping platform" dual business synergy model. During the reporting period, overseas revenue (including Hong Kong, Macao, and Taiwan) was approximately 44 million yuan, accounting for 4.79%, down 10.42% year-over-year.
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