What happened?, Chairman of a well-known company reduces his holdings of over 2.3 billion yuan in debt repayment shares | Liu Qingfeng | Company
Recently, iFlytek announced that Chairman Liu Qingfeng sold some of the company's shares through the bulk trading system. According to statistics, the value of the stock exceeds 2.3 billion yuan. In addition, in the second half of the year, iFlytek will also be reduced by its major shareholder, China Mobile. Why do we all have to reduce our holdings? What happened to iFlytek?
Chairman sells shares to repay debts
Recently, iFlytek announced that the company received a notice from Chairman Liu Qingfeng on August 14, 2023. Liu Qingfeng sold some of the company's shares through the bulk trading system of the Shenzhen Stock Exchange on August 14, 2023, reducing his holdings by 39956100 shares. Liu Qingfeng's shareholding ratio decreased from 7.27% to 5.54%.
According to Wind data cited by some media, on August 14th, iFlytek completed a bulk transaction of 39.9561 million shares, with a transaction amount of 2.35 billion yuan, which is equivalent to Liu Qingfeng's reduction in holdings.
Screenshot of iFlytek Announcement
The above announcement stated that in July 2021, in order to consolidate the company's control, meet the operating capital needs brought about by the rapid development of the company's business, and enhance the company's risk resistance ability, Liu Qingfeng borrowed 2.35 billion yuan through pledge financing and other means to subscribe to the company's non-public offering of shares. The above-mentioned debt has expired. Therefore, Liu Qingfeng needs to reduce his shareholding to repay the principal of the aforementioned loan.
The announcement also stated that iFlytek is the first listed company in China for college students to start their own businesses, and Liu Qingfeng started his own business as a college student. In the 15 years since the company went public in May 2008, Liu Qingfeng has increased his holdings of the company's shares four times in order to stabilize the company's equity structure, introduce strategic investors, and maintain the company's market value. Previously, he only reduced his holdings once in early 2020 to repay the loan principal he invested with China Mobile.
Will be reduced by major shareholders in the second half of the year
In addition to the chairman's reduction of holdings in iFlytek, iFlytek recently announced that it will also be reduced by its major shareholder, China Mobile.
Screenshot of iFlytek Announcement
On August 1st, iFlytek announced that China Mobile Communications Co., Ltd., a shareholder holding 247714216 shares of the company, plans to reduce its holdings of the company's shares by no more than 23156700 shares through centralized bidding or bulk trading from August 22, 2023 to December 31, 2023.
It is interesting that Liu Qingfeng, the chairman of iFlytek, reduced his holdings this time and was ahead of the major shareholder China Mobile.
Significant decline in net profit
Apart from being reduced by major shareholders, iFlytek did not perform well in the first half of the year. The first half financial report released by iFlytek recently showed that the company's net profit attributable to shareholders in the first half of the year was 73.572 million yuan, a year-on-year decrease of 73.54% and a decrease of 205 million yuan compared to the same period last year; The net loss after deducting non recurring gains and losses is 304 million yuan.