Huanlejia Food Group Co., Ltd. (hereinafter referred to as “Huanlejia”) announced on March 10th that Chairman Li Xing reduced his stake in the company through inquiry-based transfer, cashing out approximately 189 million yuan. This comes after the company’s previous projection of a minimum 60% decrease in net profit for 2025. Some investors expressed caution, noting the chairman’s decision to cash out.
In the “Simplified Equity Change Report” released on March 10th, Huanlejia disclosed, “Mr. Li Xing transferred 10,936,836 shares of the listed company through inquiry-based transfer for his own financial needs.” The document also identified Mr. Li Xing as the current Chairman of Huanlejia.
According to a report by The Paper on March 11th, the closing price of Huanlejia on March 11th was 21.37 yuan per share, while Li Xing’s transfer price was 17.34 yuan per share. This price represented an 20% discount to the market price, resulting in Li Xing cashing out approximately 189 million yuan.
The announcement indicated that the inquiry-based transfer had been completed as of the disclosure date.
In a previous performance forecast for 2025 released by Huanlejia, the company anticipated achieving a net profit attributable to shareholders of 35-50 million yuan, a year-on-year decrease of 66.07% to 76.25%. The forecast also projected a non-net profit of 30-45 million yuan, a decrease of 68.92% to 79.28%.
The news of the chairman’s reduction in stake and cashing out has raised concerns among investors.
Netizen “PUBG Superman” commented: “The chairman cashing out at a low price, coupled with a significant drop in company profits, isn’t this signal obvious enough? Investors really need to be cautious.”
“Dragon Bay 892” added: “A drastic decline in net profit, with the chairman quickly selling shares at a discount, this doesn’t bode well for ordinary investors.”
“Happy Starry Sky 5b” observed: “This move, the appearance is a bit unsightly.”
Public information indicates that Huanlejia Food Group Co., Ltd., established on December 12, 2001, and headquartered in Zhanjiang City, Guangdong Province, is primarily engaged in the research and production of products such as coconut juice plant protein beverages, fruit juice, and canned fruits.