(Beijing, 21th report) The Chinese listed company Hongbo Co....

(Beijing, 21th report) The Chinese listed company Hongbo Co., Ltd., which saw its stock price soar due to its cooperation with Nvidia and was called the 'Chinese version of Nvidia', was recently exposed for its founder's family illegally cashing out 2 billion yuan (about 1.3 billion Malaysian ringgit) and fleeing the scene, forcing 1.7 million shareholders to bear the burden.
According to reports from Chinese media, when Hongbo Co., Ltd. went public in 2008, the You family held a stake of up to 70% among the top ten shareholders, but gradually reduced their holdings and transfers. As of the first quarter of 2024, the You family members are no longer listed among the top ten shareholders.

According to statistics, the You family reduced their holdings of the company's stocks 11 times from 2012 to 2019, with the main reasons for the reduction being 'personal fund needs' or 'funds for investment and transformation and upgrading of entities'.

"Chinese version of Nvidia" suffered losses for 6 years, with the family of major shareholders cashing out 1.3 billion and exiting the market.

Currently, the family of major shareholders only holds a stake of 5.8%, and they have cashed out a total of 2 billion yuan.

It is worth emphasizing that none of the current top ten shareholders of Hongbo Co., Ltd. hold a stake of more than 5%, but the number of shareholders continues to increase, indicating that small investors account for the majority.
It is worth noting that none of the current top ten shareholders of Hongbo Co., Ltd. hold a stake of more than 5%, but the number of shareholders continues to increase, indicating that small investors account for the majority.

In response to the claim of "major shareholders fleeing", hongbo co.,ltd. responded to media inquiries, stating that the related reports are completely false statements, misleading investors, and emphasizing that the relevant parties acted voluntarily during the shareholding reduction process, which were all disclosed in accordance with the law and strictly complied with relevant laws and regulations.

"Currently, the company's normal operation is not affected by the absence of controlling shareholders or actual controllers. The company has established a sound governance structure and internal control mechanism to ensure the independence and standardized operation of its business."

According to reports, hongbo co.,ltd., as a leading lottery ticket printing company, once had a moment of glory in the early 2000s due to its relatively advanced technology. Although the business scale has continued to grow after going public, it has always been in a state of increasing revenue but not profit due to fierce competition.

In the past 6 years, the company has been experiencing continuous losses, and the Shenzhen Stock Exchange has questioned its continued operating ability.

In 2022, hongbo co.,ltd. signed a cooperation agreement with Huida, which was regarded as a "AI computing power bull stock" in China. Its stock price increased nearly 5 times in 5 months, which was also subject to considerable scrutiny from the public and investors at that time.