Chengdu Xinyisheng Communication Technology Co., Ltd. (Xinyisheng) announced on September 30 that the company’s major shareholder and chairman plan to reduce their holdings by 11.43 million shares, cashing out over 4 billion yuan (RMB). Xinyisheng’s stock price has risen by 617.26% in the past five months.
In the “Shareholder Inquiry Transfer Plan” released on the 30th, Xinyisheng stated that Chairman Gao Guangrong plans to transfer 11,430,682 shares, accounting for 1.15% of the total share capital. The transfer will be conducted through a non-public transfer method, not through centralized bidding or block trading. Gao Guangrong has also committed not to reduce his holdings through the secondary market within 12 months after the completion of this inquiry transfer.
According to news from the “Daily Economic News” on September 30, based on Xinyisheng’s closing price of 365.77 yuan per share on the 30th, the market value of Gao Guangrong’s share reduction this time amounted to 4.18 billion yuan.
The announcement stated that the proceeds from the chairman’s reduction will mainly be used to support investments in cutting-edge technology.
Public information shows that Chengdu Xinyisheng Communication Technology Co., Ltd. was established on April 15, 2008, and is a supplier of customized products and professional system solutions in China’s optical module and subsystem industry.
The “Daily Economic News” mentioned that benefiting from the surge in AI (Artificial Intelligence), Xinyisheng has been favored by investors for its optical modules, with its stock price starting to rise after hitting a low of 46.56 yuan per share on April 9 this year, reaching a historical high of 401.1 yuan per share on September 2. In the past five months, its stock has soared by 617.26%.
This reduction is not the first time Gao Guangrong has reduced his holdings in Xinyisheng. In the first half of 2020, he reduced 480,000 shares. In August 2021, he reduced a total of 4.1526 million shares. From June 15 to July 21, 2023, he reduced a total of 6.9975 million shares, cashing out a total of 463 million yuan.