(BEIJING, 21st) The stock price of Hongbo Shares, a Chinese ...

(BEIJING, 21st) The stock price of Hongbo Shares, a Chinese listed company known as the “Chinese version of Huida,” has surged due to cooperation with Nvidia (Nvidia). Recently, it was revealed that the founder's family of seven cashed out RMB 2 billion (about RM1.3 billion) to run away, and 170,000 shareholders were forced to become “successors.”
According to Chinese media reports, at the beginning of the listing of Hongbo Co., Ltd. in 2008, the You Family's shareholding ratio among the top ten shareholders was as high as 70%, and their holdings were reduced and transferred one after another. As of the first quarter of 2024, there are no members of the Youshi family on the list of top ten shareholders.

According to statistics, the Youshi family reduced their holdings of company shares 11 times between 2012 and 2019. Most of the reasons for reducing holdings were “due to personal capital requirements” or “capital requirements for physical enterprise investment and enterprise development, transformation and upgrading.”

The “Chinese version of Huida” lost 6 years and the majority shareholder family cashed out 1.3 billion dollars and left the market

Today, the majority shareholder's family of seven holds only 5.8% of the shares, and has accumulated cash out of 2 billion yuan before and after.

Emphasize reducing holdings according to law
It is worth noting that none of the top ten shareholders of Hongbo Co., Ltd. currently holds more than 5% of the shares, yet the number of shareholders continues to increase, which means that retail investors account for the majority of holders.

In response to media inquiries, Hongbo Co., Ltd. stated that in response to media inquiries, Hongbo Co., Ltd. stated that the relevant reports were simply false statements, misled investors, and emphasized that the relevant parties were based on voluntary principles, that the holdings reduction process was disclosed in accordance with the law, and that it strictly complied with relevant laws and regulations.

“The current status of the company having no controlling shareholders or actual controllers does not actually affect the normal operation of the company. The company has established a perfect governance structure and internal control mechanism to ensure the independence and standardized operation of the business.”

According to reports, Hongbo Co., Ltd., as a leader in lottery printing, had a boom in early 2000 with relatively advanced technology. Although the scale of the business continued to grow after listing, it has remained in a state of increasing revenue without increasing profit due to intense competition.

Over the past 6 years, the company has experienced continuous losses, and the Shenzhen Stock Exchange has questioned its ability to continue operating.

In 2022, Hongbo Co., Ltd. was regarded as China's “AI computing power bully” due to the signing of a cooperation agreement with Huida. Its stock price nearly fivefold within 5 months, and was also questioned by outsiders and investors at the time.