Recently, controlling shareholders and shareholders of many listed companies in the A-share market have disclosed reduction plans, among which many overfunded listed enterprises have become the main force of cash out, attracting market attention. On April 3rd, Huasheng Lithium Battery announced that the controlling shareholder plans to cash out 190 million yuan. The company raised 1.87 billion yuan in excess of the offering when listed and has suffered consecutive losses after deducting non-recurring gains and losses; 7 controlling shareholders of Ligong Navigation plan to cash out about 300 million yuan. The company has suffered losses for 3 consecutive years and raised 600 million yuan in excess of the offering when listed in 2022.

In addition to the above two enterprises, shareholders of many other companies such as Chaojie Co., Ltd., Shenglan Co., Ltd., and Aolai De have planned large-scale cash out recently, and the controlling shareholders of some enterprises have multiple reduction behaviors. At the same time, the stock prices of many overfunded listed enterprises have performed weakly. Yuneng Technology, Hemai Co., Ltd. and others have fallen significantly recently. Among them, Hemai Co., Ltd. raised 4.8 billion yuan in excess of the offering when listed in 2021, and its stock price fell 7.17% recently.

Analysis believes that the concentrated cash out of shareholders of overfunded listed enterprises may, on the one hand, reflect the shareholders’ lack of confidence in the company’s future development, and on the other hand, may be related to the company’s performance falling short of expectations. For investors, it is necessary to be vigilant about the reduction risk of such enterprises, focus on the company’s performance fundamentals and capital flow, avoid blind follow-up investment, and rationally view the reduction behavior of shareholders of listed companies.