Chinese Listed Company HD High-Tech (002144.SZ) has recently reduced its holdings in another A-share company, Haining Picheng, selling stocks at the top, with a transaction amount of more than 70 million yuan. Haining Picheng’s stock price has risen for six consecutive days recently, then dropped continuously for three days, and experienced a significant plunge after HD High-Tech reduced its holdings, with a 26% decline this week.
On the evening of November 27th, HD High-Tech announced that the company seized market opportunities to sell a portion of its holdings in Haining Picheng stocks.
As of the announcement date, the company sold a total of 11.15 million shares of Haining Picheng through the centralized bidding trading method of the stock exchange at an average price of 6.4268 yuan per share, with a transaction amount of 71.6589 million yuan (excluding stamp duty and transaction commission).
After this reduction, the company still holds a total of 19.15 million unrestricted shares of Haining Picheng, accounting for 1.49% of the company’s total equity.
From August 2004 to the present, the chairman of HD High-Tech has been Shen Guofu, aged 68.
Looking at the recent stock price trend of Haining Picheng, it seems to have reached a peak, first rising for six consecutive days and then falling for three consecutive days.
Specifically, starting from November 15th, Haining Picheng’s stock price experienced five consecutive limit up sessions. On November 22nd, the opening price was 6.05 yuan, continuing to rise and finally closing at 6.6 yuan. On the 25th, the opening price was 6.57 yuan, reaching a high of 7.02 yuan during the trading session, setting a new high for the year, then reversed from rising to falling, closing at the limit down with a final price of 5.94 yuan.
Subsequently, on November 26th and 27th, Haining Picheng’s stock price continued to plummet significantly, dropping from over 7 yuan earlier in the week to below 5 yuan. By the end of trading on the 27th, the stock price closed at 4.88 yuan, marking a 26% decline for the week with a total market value of 6.2 billion yuan.
Due to HD High-Tech’s average selling price of 6.4268 yuan per share, it implies that the majority, if not all, of its shares were sold on the 22nd and 25th, coinciding with the recent peak of Haining Picheng’s stock price, successfully selling at the top.
On November 27th, Haining Picheng issued an abnormal stock trading announcement. The company’s stock price had deviated from the closing price of the previous trading day by over 20% for three consecutive trading days from November 25th to 27th, meeting the criteria for abnormal stock trading fluctuations.
This news made it to the trending list on the 28th, sparking discussions and doubts among netizens.
“Neglected Lambs”: So, is the purpose of the stock market gambling, shearing sheep, or for the refinancing of listed companies for reproduction?
“Just Want to be Blown by the Wind”: If going public is just to cash out, what is the point of such a company’s existence?
“909510614”: Going public just to cash out and exit, the entire company can be sold to retail investors.
“Broken Leg in Science”: The top management of this company is too “clever”, leaving people feeling cold.
Data shows that Haining Picheng Leather China Co., Ltd.’s primary business is the development, leasing, and service of professional leather markets. The company’s main products or services include the leasing and sale of shops and related properties, hotel services, commodity circulation, health care services, and financing guarantee services.
In the first three quarters of 2024, Haining Picheng’s revenue was 708 million yuan, a decrease of 8.91% year-on-year; the net profit attributable to shareholders of the listed company was approximately 72.12 million yuan, a decrease of 46.27% year-on-year; and the basic earnings per share was 0.06 yuan, a decrease of 40% year-on-year.