Dongguan Yiheda Automation Co Ltd: Key Shareholders Plan to Reduce Holdings
Dongguan Yiheda Automation Co Ltd, a company listed on the Shenzhen Stock Exchange, has announced that several key shareholders, including executives and directors, plan to reduce their holdings in the company. This news comes amid a broader context of market activity where other companies have also reported share buybacks and sales.
Shareholder Reduction Plans
On May 26, 2025, Dongguan Yiheda Automation disclosed that its major shareholders, including Vice General Manager Zhang Hong, Vice General Manager Li Jinliang, Chief Financial Officer Wen Xinying, and specific shareholder Zhang Gaohong, intend to collectively reduce their holdings by up to 4% of the company’s total shares. Specifically, Zhang Hong plans to sell up to approximately 12.68 million shares, representing up to 2% of the total shares. Li Jinliang intends to sell up to approximately 2.09 million shares, or 0.33%, while Wen Xinying plans to sell up to approximately 0.89 million shares, or 0.14%. Zhang Gaohong aims to sell up to approximately 9.70 million shares, or 1.53%.
Market Context
The company’s shares were trading at 22.2 CNY as of the close on May 26, 2025, with a market capitalization of approximately 147.39 billion CNY. The price-to-earnings ratio stands at 32.6483. The company’s stock has experienced fluctuations over the past year, with a 52-week high of 32.36 CNY on February 25, 2025, and a low of 16.48 CNY on August 27, 2024.
Revenue Composition
For the year 2024, Dongguan Yiheda Automation’s revenue was distributed across various sectors: other industries (29.66%), 3C industry (28.81%), new energy (18.47%), automotive (10.04%), photovoltaic industry (7.64%), and semiconductors (5.39%).
Reasons for Share Reduction
The company has stated that the planned share reductions are due to personal financial needs of the shareholders involved. Importantly, these shareholders do not include any controlling shareholders or actual controllers of the company. Therefore, the execution of this plan is not expected to affect the company’s control structure or its ongoing operations.
Conclusion
While the planned reduction in shares by key stakeholders may raise questions among investors, the company has reassured that these actions will not impact its governance or operational continuity. Investors will likely monitor the situation closely to assess any potential effects on the company’s stock performance and market perception.