Understanding the Market | WELLCELL HOLD fell over 11% again, controlling shareholder sold 145 million shares at a 36% discount, making Hengfeng International the largest shareholder after the transaction

WELLCELL HOLD fell more than 11% again, closing down over 7% yesterday. As of the time of writing, it has dropped 11.14%, trading at HKD 7.74, with a transaction volume of HKD 18.7322 million. In terms of news, WELLCELL HOLD previously announced that one of its controlling shareholders, WELLCELL HOLD Group, sold 45 million shares and 100 million shares to Shou Jian and major shareholder Hengfeng International, accounting for 4.5% and 10% of the company's equity, respectively; the price per share was HKD 6, a discount of 36.31% compared to the closing price on April 15. After the completion, WELLCELL HOLD Group's shareholding in the company will decrease from 31.1% to 16.6%, no longer being the controlling shareholder, but still considered a major shareholder; Hengfeng International's shareholding will increase from 19.9% to 29.9%, becoming the company's single largest shareholder. According to previous announcements, Hengfeng International is engaged in investment holding, with its sole director and controlling shareholder being Qian Fenglei, the founder and CEO of Zhejiang Hengfeng International. Other shareholders of Hengfeng International include Shen Guojun, the founder and chairman of Intime Group, Cao Guowei, chairman and CEO of Sina Group, Hu Xiaoming, a partner of Alibaba and former CEO of Ant Financial, Cai Wensheng, former chairman and executive director of Meitu, Sheng Xitai, founder of Hongtai Fund, and Tang Yue, founder of Xiaoying Technology