Impact Analysis of the Shareholding Reduction by the Controlling Shareholder of Yidong Electronics

Based on the information obtained, I will provide you with a comprehensive analysis of the impact of the shareholding reduction event by the controlling shareholder of Yidong Electronics:

According to public information, the concerted action parties of the controlling shareholder and actual controller of Yidong Electronics—Wang Gang, Yifu Investment, Yian Investment, Yicui Investment, and Yihe Investment—reduced a total of 2,346,300 shares of the company through centralized bidding and block trading from December 10 to December 17, 2025, accounting for 1% of the company’s total share capital[1].

• Before reduction: The controlling shareholder, actual controller, and their concerted action parties held a total of 154,837,387 shares, accounting for 65.99% of the total share capital
• After reduction: They held a total of 152,491,087 shares, accounting for 64.99% of the total share capital[1]
• The main reductions came from Wang Gang and four investment platforms, while the actual controller Deng Yuquan (holding 38.96%) and Yidong Holdings (holding 21.33%) did not participate in the reduction[1]

• December 17: The stock price hit the 20.01% limit-up, closing at 52.78 yuan, with a turnover rate of 12.81% and a turnover of 1.534 billion yuan[4]
• December 18: The opening price rose by 5%, reaching 56.02 yuan as of 9:26[4]
• The stock price rose instead of falling during the reduction period, indicating good market digestion of the reduction event

• The Dragon and Tiger List on December 17 showed three institutional seats, with a total net purchase of 93,000 yuan[4]
• Shenzhen Stock Connect had a net sell of 45.1138 million yuan, but institutional funds still showed a net purchase status[4]

1. Strong Compliance:
   This reduction was strictly implemented in accordance with the pre-disclosure plan on September 16, 2025, with the quantity not exceeding the plan ceiling and no violations[1]

2. Stable Control:
   After the reduction, the controlling shareholder and its concerted action parties still hold 64.99% of the shares, maintaining an absolute controlling position, and the company’s control has not changed[1]

3. Moderate Reduction Scale:
   Only a 1% shareholding reduction was made, which is a small-scale reduction and will not have a significant adverse impact on the company’s governance structure and daily operations[2]

4. Improved Company Fundamentals:
   According to brokerage data, the company’s EPS in the third quarter of 2025 was 0.10 yuan, and its operating revenue was 650.35 million USD, showing a significant improvement compared to the loss status in previous quarters[0]

1. Signal Effect:
   The controlling shareholder’s reduction may be interpreted by the market as insiders being not optimistic about the stock price prospects

2. Liquidity Pressure:
   Although the 1% reduction is not large, it still causes certain pressure on market liquidity in the short term

1. Optimized Equity Structure:
   Moderately reducing the controlling shareholder’s shareholding ratio helps improve the company’s governance structure and enhance the voice of minority shareholders

2. Increased Market Liquidity:
   Increasing the proportion of tradable shares improves stock liquidity, which is conducive to attracting more institutional investors

3. Diversified Shareholder Structure:
   Introducing new investors through block trading may bring more diversified shareholder resources

1. Unchanged Control:
   The 64.99% shareholding ratio still ensures the actual controller’s absolute control over the company, and major decisions will not be affected

2. Business Continuity:
   The company stated that the reduction is a normal arrangement based on the shareholders’ own capital needs and will not have a significant adverse impact on daily production and operations[2]

• Main Business:
  FPC flexible circuit boards, products applicable to multiple fields[6]
• Industry Prospect:
  FPC has strong demand in new energy vehicles, consumer electronics and other fields, and the industry scale continues to grow
• Technical Strength:
  The company has certain technical advantages in the FPC field

• Current market capitalization: 13.88 billion USD[0]
• P/E ratio: -483.36 times (due to previous losses)[0]
• P/B ratio: 4.73 times[0]
• The price-to-book ratio is in a reasonable range

1. Short-term:
   The reduction event has been fully digested by the market, and the strong stock price performance shows investor confidence
2. Medium-term:
   The company’s fundamentals show an obvious improvement trend, and the FPC industry is booming
3. Long-term:
   The optimized equity structure is conducive to corporate governance, but it is still necessary to pay attention to the future reduction trends of the controlling shareholder

1. Subsequent Reduction Risk:
   The controlling shareholder still holds a high shareholding ratio, and there is a possibility of further reduction
2. Intensified Industry Competition:
   The FPC industry is highly competitive, and attention should be paid to the risk of technological iteration
3. Valuation Risk:
   The current stock price has risen significantly, so attention should be paid to the risk of correction

The overall impact of this shareholding reduction event by the controlling shareholder of Yidong Electronics is relatively mild, and the long-term negative impact on the company’s investment value is limited:

1. Stock Price Impact:
   Positive market reaction, with the stock price rising during the reduction period, indicating sufficient investor confidence
2. Governance Impact:
   Slightly optimized equity structure, stable control
3. Business Impact:
   Normal company operations, continued improvement in fundamentals
4. Investment Value:
   Long-term investment value mainly depends on the company’s fundamentals and industry development prospects, rather than this reduction event

Investors should pay more attention to the company’s operating performance, industry development trends, and the future equity change plans of the controlling shareholder, rather than over-focusing on this small 1% reduction.

[1] Sina Finance - “Yidong Electronics’ Controlling Shareholder’s Concerted Action Parties Reduce 2,346,300 Shares, Shareholding Ratio Drops to 64.99%”
[2] Sina Finance - “Yidong Electronics’ Controlling Shareholder’s Concerted Action Parties Reduce 2,346,300 Shares, Shareholding Ratio Drops to 64.99%”
[4] East Money - “Multiple Main Forces Appear on Dragon and Tiger List, Yidong Electronics Hits Limit-Up (12-17)”
[6] Sina Finance - “Top 15 New Energy Stock Turnover Rankings on December 3, 2025”
[0] Jinling API Data