ROYALFLUSH INFO has prematurely terminated the chairman's share reduction plan, which previously stated "will moderately reduce shares to provide market participation opportunities."

After the announcement of the reduction plan, Donghua Shun Chairman Yi Zheng announced the early termination of the plan.

In the early morning of September 9, Donghua Shun released an announcement titled "Announcement on the Controlling Shareholder Not Reducing Company Shares and Early Termination of the Reduction Plan," stating that the company had issued an announcement on September 6 regarding the pre-disclosure of the reduction of shares by the controlling shareholder and shareholders holding more than 5%. The company's controlling shareholder, actual controller, and Chairman Yi Zheng intended to reduce the company's stock by no more than 684,000 shares, accounting for 0.13% of the company's total share capital. In light of various factors, Yi Zheng decided to terminate this reduction plan early. The reduction plan of shareholder Hangzhou Kaishun Technology Co., Ltd. remains unchanged.

On the evening of September 5, Donghua Shun announced that Yi Zheng and shareholders holding more than 5%, Kaishun, planned to reduce their shares in the company by no more than 1.3831 million shares within three months after 15 trading days from the date of this announcement (from September 29, 2025, to December 28, 2025), through centralized bidding or block trading. Among them, Yi Zheng intended to reduce no more than 684,000 shares, accounting for 0.13% of the total share capital; Kaishun intended to reduce no more than 699,100 shares, also accounting for 0.13% of the total share capital.

Regarding Yi Zheng's reduction, the announcement provided multiple explanations, including that his "phase-based increase target has been successfully completed," and optimizing personal resource allocation to "focus more energy on the company's strategic layout." However, the statement "through moderate reduction, the aim is to provide market participation opportunities" quickly attracted market attention and discussion due to its rarity in the reduction announcements of listed companies.

Since September last year, Donghua Shun's stock price has increased by more than 260%. At the same time, the company's fundamentals have performed strongly, with double-digit growth in both revenue and net profit in the first half of 2025.

Floating Profit of Nearly 200 Million from "Buying Low and Selling High"

The source and potential gains from the shares planned for reduction are another core focus of the market.

According to the announcement, the 684,000 shares that Yi Zheng intends to reduce were acquired through the secondary market on April 28, 2022. At that time, the announcement stated that the background for his increase was "to stabilize the company's stock price amid a continuously declining market and the company's stock being severely undervalued."

According to the Daily Economic News, Yi Zheng spent a total of 50.099 million yuan on this increase in April 2022. Since last September, benefiting from market conditions and the company's performance growth, Donghua Shun's stock price has surged, reaching a peak of 426.88 yuan per share If calculated based on recent stock prices, this increase in holdings at a low stock price is expected to bring Yi Zheng nearly 200 million yuan in floating profits. This operation is viewed by some market participants as a precise "buy low, sell high."

No Reduction in Holdings in 16 Years Since Listing

Although the early termination of this reduction plan has sparked controversy, it is worth noting that this is also Yi Zheng's first reduction plan since the company went public.

The termination announcement on September 9 specifically stated: "Since the company's listing on December 25, 2009, for nearly 16 years, the actual controller Mr. Yi Zheng has never reduced his holdings in the company."

As of now, Yi Zheng holds 194 million shares of ROYALFLUSH INFO, accounting for 36.13% of the company's total share capital, making him the controlling shareholder and actual controller of the company. After the termination of this reduction, his shareholding status as the company's founder and core figure remains stable.

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