On September 19, Kodak Manufacturing Co., Ltd. (Kodak Manufacturing) announced that the company’s chairman and his wife have mutually agreed to dissolve their marriage, with the chairman evenly splitting his 5.146% stake in the company with his wife. This news quickly became a hot topic on Baidu’s searches on September 20.
According to the “Notice on Changes in Shareholders’ Equity” released by Kodak Manufacturing on the 19th, the company’s chairman, Bian Cheng, and his wife, Guan Qi, have amicably agreed to dissolve their marriage through an agreement. As a result of the property division between Bian Cheng and Guan Qi, Bian Cheng’s stake in the company will decrease to 2.573%, while Guan Qi’s stake will increase to 2.573%.
Prior to the property split, Bian Cheng held 98.6996 million shares of Kodak Manufacturing, accounting for 5.146% of the total share capital. After the split, Bian Cheng and Guan Qi will each hold 49.3498 million shares of Kodak Manufacturing, representing a 2.573% stake for both.
In order to safeguard the company’s stable operation, Guan Qi voluntarily transferred all the voting rights and other rights acquired through the property division to Bian Cheng. Following the completion of the non-trading transfer, Guan Qi will be considered a concerted action person with Bian Cheng.
Based on Kodak Manufacturing’s closing price of 7.14 RMB per share on September 19, the market value of the listed company’s stocks divided between the two amounts to over 700 million RMB.
In China’s A-share market, if a major shareholder holding more than 5% of shares reduces their holdings, they are required to report to regulatory authorities and inform shareholders via a public announcement. Therefore, many major shareholders opt for splitting their shares through divorce to achieve reduction and cash out without the need for reporting and public announcements. As a result, the A-share market occasionally sees high-profile cases of major shareholders divorcing to liquidate their holdings, turning the market into a tool for major shareholders to exploit retail investors.
Public information indicates that Kodak Manufacturing Co., Ltd. was founded in 1992 and went public on the Shanghai Stock Exchange in 2002. The company’s business includes ceramic machinery, wall material machinery, stone machinery, construction machinery, overseas ceramic production and sales, clean energy and environmental protection, lithium materials, hydraulic pumps, fluid machinery, smart energy, among others.
According to the September 19 report from mainland China’s “Financial World,” in 2023, Kodak Manufacturing achieved an operating income of 9.696 billion yuan, a year-on-year decrease of 13.10%, and a net profit of 2.608 billion yuan, down by 49.86% year-on-year; the net profit attributable to the listed company was 2.092 billion yuan, a decrease of 50.79% year-on-year.
Netizen “Xiao Hei Fa Ma La Tang” commented, “This case involves pre-marital and post-marital property division, as well as company equity, which can be complex. I wonder if this will have any impact on the company’s stock price. Investors need to be cautious.”
As of the closing on September 19 at 15:00 Beijing time, Kodak Manufacturing closed at 7.14 yuan per share, an increase of 2.59%, with a total market value of 13.693 billion yuan.