Zhejiang Sanhua Intelligent Control Co., Ltd. (Sanhua Intelligent Control) Chairman and five executives collectively faced inquiries from investors regarding their recent reduction in shareholdings. The company explained the reasons for the executives’ share reduction, stating that it was primarily for their children’s education and daily living expenses.
According to a report by “21st Century Economic News” on May 31, on May 26, Sanhua Intelligent Control held a performance briefing meeting where investors questioned why several senior executives were reducing their shareholdings. The company responded by stating that the Chairman reduced his shareholding mainly due to personal financial needs, while the other five directors or senior management members used the funds from their share reduction for their children’s education expenses and daily living needs.
It is reported that Sanhua Intelligent Control’s senior executives’ share reduction plan was disclosed on January 23. The individuals involved in the reduction included the actual controlling person and Chairman Zhang Yabo, CEO Wang Dayong, Director Ni Xiaoming, Chief Engineer Chen Yuzhong, Board Secretary Hu Kaicheng, and CFO Yu Yongkui. As of March 30, the five individuals completed their share reduction plans, with Zhang Yabo realizing approximately 420 million yuan in total, and the other four executives realizing around 148 million yuan. Chen Yuzhong did not implement the share reduction operation and terminated the plan prematurely.
The response from Sanhua Intelligent Control regarding the executives’ share reduction being for their children’s education expenses has sparked discussions on social media platforms. On Tencent News, nearly seven hundred netizens participated in discussions and expressed their opinions. Some netizens expressed that they could not accept the reasons for the share reduction, calling it an “unbelievable excuse.”
Netizen “Li Zhong” stated: “Who needs 420 million for education, the reason is really bizarre, such a company won’t go far.” “Leisurely Breeze” believed: “Going public is for companies to finance and for executives to achieve financial freedom. Share reduction is a legitimate means for executives to realize financial freedom.”
Some netizens cautioned investors to be cautious about companies that frequently reduce their holdings at high levels.
Netizen “User Grassland” commented: “Shareholders collectively cashing out and turning their backs! Even they themselves are not confident about the company’s future! Investors should be more clear-headed in their investments, once trapped, they will lose everything.”
Tencent user qldbusd also bluntly expressed: “There are two types of companies you should avoid: those reluctant to distribute dividends to shareholders and companies that frequently cash out at high levels. Let’s not be the ‘leeks’ continually being cut.”
Su Bank’s contracted researcher Fu Yifu recently told the “Beijing News” that for ordinary investors, significant share reductions by founders, actual controllers, and core executives are extremely valuable risk signals. Stocks that have doubled in price, have high valuations, and are coupled with large share reductions should be avoided decisively.
Since 2026, the Chinese A-share market has seen an upward trend, with the Shanghai Composite Index breaking through the 4200-point mark, reaching a nearly 11-year high. Against this backdrop, major shareholders and executives of listed companies have continued to cash out at high levels.
According to “Beijing News” on May 27, data from the securities and financial data service provider East Fortune showed that since April 2026, over 500 listed companies in the A-share market have announced plans for major shareholders to reduce holdings. Wind data service showed that the total amount of reductions by the major shareholders of these 500-plus listed companies (calculated based on the closing price of the shares on the date of the reduction announcement and the maximum quantity of shares to be reduced) exceeded 100 billion yuan. These 500-plus listed companies cover various industries such as semiconductors, chemicals, machinery, and electrical equipment, with some companies even issuing multiple shareholder reduction announcements. Many of the companies that issued reduction announcements are industry leaders and popular stocks that have doubled in price during the year.
Public information shows that Zhejiang Sanhua Intelligent Control Co., Ltd. was established on September 10, 1994, abbreviated as Sanhua Intelligent Control. The company is located in Shaoxing City, Zhejiang Province. On June 7, 2005, the company was listed on the Shenzhen Stock Exchange. Zhejiang Sanhua Intelligent Control Co., Ltd. is a manufacturer specializing in producing and researching refrigeration and air conditioning control components and parts, with products used in the automotive, electrical appliances, and air conditioning industries. Sanhua Intelligent Control is considered by the market as a core supplier for Tesla’s Optimus humanoid robot, but this business currently contributes relatively little to the company’s revenue and profit.
“21st Century Economic News” shows that in 2025, Sanhua Intelligent Control’s stock price surged significantly, rising from 23.09 yuan per share at the beginning of the year to a historic high of 60.77 yuan per share on January 19, 2026, with a maximum increase of 163.2%. After the share reduction announcement, the stock price began to decline, closing at 46.34 yuan per share on May 29. The A-share price of Sanhua Intelligent Control has fallen by over 16% year-to-date, with the current total market value of the company approaching 200 billion yuan.