Xinzhi Group's largest shareholder repeatedly failed in agreement transfers and shifted to the secondary market, cumulatively reducing 2.67% of shares

Xinzhi Group (002664) recently announced that its largest shareholder, CITIC Trust Co., Ltd. – CITIC Bank Trust Portfolio Investment Project 1701 Phase Single Capital Trust, has completed its share reduction plan. According to the announcement, the shareholder reduced a total of 10,909,000 shares through centralized bidding and block trades from November 21, 2025, to February 24, 2026, accounting for 2.67% of the company’s total share capital. Of these, 4,082,000 shares were reduced through centralized bidding, and 6,827,000 shares through block trades.

After this reduction, the largest shareholder’s stake decreased from 25.48% to 22.81%. It is reported that the shareholder’s shares were initially obtained through judicial means. In 2022, CITIC Bank Trust Portfolio Investment Project 1701 Phase Single Capital Trust acquired 104 million shares of Xinzhi Group through court rulings, representing 25.75% of the total share capital, thus becoming the company’s largest shareholder. Since this shareholding was obtained passively through judicial debt settlement rather than active investment, the shareholder has a strong subsequent exit intention.

To exit, the shareholder has attempted multiple times to transfer all 104 million shares through public solicitation. In June 2023, Xinzhi Group announced for the first time that the largest shareholder intended to transfer all shares at a price not lower than 15.113 yuan per share, but the plan was terminated due to no interested buyers registering. Subsequently, the shareholder launched two more public solicitations for transfer in April and October 2024, but neither successfully attracted interested buyers.

After three unsuccessful public transfer attempts, the largest shareholder adjusted its exit strategy from “one-time agreement transfer” to “gradual reduction in the secondary market.” This share reduction plan is a specific reflection of that strategic shift. Xinzhi Group emphasized in the announcement that the largest shareholder is not the company’s controlling shareholder or actual controller. Therefore, this reduction will not significantly impact the company’s governance structure, equity structure, or future operations, nor will it lead to a change in control of the company.