Analysis of the Impact of Share Reduction by Zhou Xin, a Shareholder of Zhixin Precision

Based on the collected information, I will systematically analyze the impact of share reduction by Zhou Xin, a shareholder of Zhixin Precision.

---

: 301512.SZ (ChiNext) [1]

: Shenzhen Zhixin Precision Instruments Co., Ltd., founded in March 2012, listed on ChiNext on July 20, 2023, with an issue price of RMB 39.66 per share [1]. The company’s main business covers the design, production and sales of high-precision/high-speed/intelligent production lines, intelligent testing equipment, intelligent dispensing equipment, intelligent welding equipment, as well as the R&D and manufacturing of robots and large-scale automated equipment. The company has a registered capital of RMB 53.33 million, and as of the end of June 2025, the total number of employees is 1,056 [2].

---

Item	Details
Share Reduction Subject	Shareholder Zhou Xin
Current Shareholding	1.991 million shares, accounting for 3.73% of total share capital
Planned Reduction Quantity	No more than 1.6 million shares, accounting for 3.00% of total share capital
Share Reduction Method	Concentrated bidding (≤1%) + block trading (≤2%)
Share Reduction Period	February 11, 2026 - May 10, 2026
Reason for Share Reduction	Shareholder’s capital needs
Source of Shares	Shares held before the initial public offering
Price Commitment	No lower than the issue price of RMB 39.66

[3]

It is worth noting that this is Zhou Xin’s second share reduction plan. On May 27, 2025, Zhou Xin disclosed a share reduction plan (reducing no more than 1.6 million shares), which was completed on September 18, 2025. The actual reduction was 669,000 shares (accounting for 1.25%), with an average reduction price of RMB 41.50 per share [4].

---

As a small-cap stock on ChiNext, Zhixin Precision faces the following valuation characteristics:

• High Valuation Feature
  : The overall valuation level of ChiNext has been high for a long time. According to historical research data, the price-earnings ratio of ChiNext in the early stage was close to 70 times [5]
• Impact of This Reduction
  : Although the 3% share reduction ratio is not large, considering that the shares Zhou Xin plans to reduce account for 80.36% of his shareholding, which is close to the 80% upper limit of his commitment, it may send a signal of “cash-out by founding/early shareholders” to the market

Influencing Factor	Specific Performance
Supply-Demand Imbalance	Increased supply of small-cap stocks with limited buyer absorption capacity
Market Sentiment	Investors may interpret it as the shareholder’s lack of confidence in the company’s future development
Liquidity Discount	Increased selling pressure during the share reduction period leads to decreased liquidity, further depressing valuation
Historical Arbitrage	There is a price difference between the issue price of RMB 39.66 and the current stock price, giving the shareholder a motivation to cash out

---

Disclosure of share reduction announcement → Fluctuation of investor sentiment → Increased selling pressure → Stock price under pressure

According to the research on share reduction after lifting of restrictions on ChiNext [6]:

• The willingness to reduce shares after the lifting of restrictions on IPO shares is usually low, but when the scale of lifted restrictions accounts for an excessively high proportion of tradable shares, it will suppress the short-term stock price
• For small-cap stocks, the “limited liquidity” indicator is poor, and a small amount of capital may cause a large price impact

Time Window	Expected Impact
Before Share Reduction (Before February 11)	There may be “front-running” behavior, with some investors selling in advance
During Share Reduction (February-May)	Sustained selling pressure, but the impact on the secondary market is relatively controllable due to the use of block trading
After Share Completion	Negative factors are fully digested, and valuation may stabilize and recover

• Issue Price Support
  : RMB 39.66 per share (the shareholder commits to a reduction price no lower than the issue price)
• Historical Low Reference
  : Needs to be judged in combination with the company’s fundamentals

---

Feature	Explanation
Small Number of Tradable Shares	High proportion of restricted shares, leading to a substantial increase in tradable share capital after lifting of restrictions
High Valuation	Growth expectations are overdrawn, leading to great pressure on performance fulfillment
High Volatility	Significantly affected by market sentiment and capital conditions
Poor Liquidity	Small orders can trigger large price fluctuations

According to the research on lifting of restrictions on restricted shares in A-shares [6]:

• When the number of shares with lifted restrictions accounts for more than 200% of the number of tradable shares before the lifting of restrictions, the stock price of individual stocks will be significantly suppressed in the short term
• The willingness to reduce shares by holders of private placement shares is usually stronger than that of holders of IPO shares
• Investor sentiment has a significant positive impact on the yield of ChiNext stocks [8]

---

• Pay Attention to the Pace of Share Reduction
  : Closely track the actual progress of Zhou Xin’s share reduction (ratio of concentrated bidding vs. block trading)
• Pay Attention to Trading Volume
  : Be alert to a drop with heavy volume; the risk is relatively controllable for a sideways drop with light volume
• Pay Attention to Fundamentals
  : Whether the company’s performance can support the current valuation level

Strategy	Advice
Left-Side Trading	If the stock price is close to the issue price and the fundamentals are good, consider building positions in batches
Right-Side Trading	Wait until the share reduction is completed and selling pressure is digested before entering the market
Avoidance Strategy	Investors with high liquidity requirements may temporarily avoid it

1. Systematic Risk
   : A correction in the overall valuation of ChiNext may amplify the negative impact of the share reduction
2. Liquidity Risk
   : Insufficient liquidity of small-cap stocks may lead to increased execution slippage
3. Confidence Risk
   : Continuous share reductions may shake the confidence of institutional investors in holding shares
4. Superimposed Risk of Lifting Restrictions
   : Need to pay attention to whether other shareholders will reduce their shares after the lifting of restrictions in the future

---

The impact of the planned 3% share reduction by Zhou Xin, a shareholder of Zhixin Precision, on the company’s valuation and stock price can be summarized as follows:

1. Short-Term Pressure
   : The stock price faces periodic adjustment pressure from the disclosure of the share reduction plan to the implementation period
2. Controllable Impact
   : The 3% share reduction ratio is relatively limited, and the use of block trading can reduce the direct impact on the secondary market
3. Key Support
   : The issue price of RMB 39.66 per share forms an important lower support level
4. Medium-Term Repair
   : After negative factors are fully digested, the valuation is expected to stabilize along with the recovery of market sentiment

Investors should make comprehensive decisions based on the company’s fundamentals, the overall market environment, and their own risk preferences.

---

[1] Sina Finance - Company Profile of Zhixin Precision (301512) (https://vip.stock.finance.sina.com.cn/corp/go.php/vFD_FinanceSummary/stockid/301512/displaytype/4.phtml)

[2] Sohu Securities - Company Profile of Zhixin Precision (https://q.stock.sohu.com/cn/301512/gsjj.shtml)

[3] Sina Finance - Zhixin Precision Shareholder Zhou Xin Plans to Reduce Shares by No More Than 1.6 Million Shares, Accounting for 3% of Total Share Capital (https://finance.sina.cn/2026-01-20/detail-inhhxznt6124111.d.html?vt=4)

[4] Futu NiuNiu - Completion of Share Reduction Plan by Zhou Xin, a Specific Shareholder of Zhixin Precision (https://news.futunn.com/en/post/62288056)

[5] Simuwang - Analysis of the Impact of ChiNext’s Wave of Lifting of Restrictions (https://www.simuwang.com/news/47385.html)

[6] Eastmoney - Research on the Market Impact of Large-Scale Lifting of Restrictions on Restricted Shares (https://pdf.dfcfw.com/pdf/H3_AP202106071496534390_1.pdf)

[7] Core Academic Journal - Research on Insufficient Liquidity and Extreme Risk Events (https://www.cicfconf.org/sites/default/files/paper_442.pdf)

[8] Sinoss - Research on the Impact of Investor Sentiment on the Yield of ChiNext Stocks (https://www.sinoss.net/upload/resources/file/2025/09/04/46221.pdf)