Changhui Fiber Optics: Company's Third-Largest Shareholder Plans to Reduce Holdings of No More Than 0.12% of Shares

(Source: Caixin)

The source of the proposed share reduction is shares obtained before the IPO, and the reason for the reduction is due to the company’s operational development needs.

On March 18, Changfei Optical Fiber (601869.SH) announced a shareholder reduction, stating that Wuhan Yangtze River Communication Industry Group Co., Ltd. plans to reduce its holdings in the company.

According to the shareholder’s holdings, Wuhan Yangtze River Communication Industry Group Co., Ltd. is a shareholder holding more than 5% directly, currently owning 118,837,010 A-shares, accounting for 14.35% of the total share capital. All these shares originated from the company’s initial public offering of A-shares before listing and have been tradable since July 22, 2021.

Regarding the details of the reduction plan, Wuhan Yangtze River Communication Industry Group Co., Ltd. plans to reduce no more than 1,000,000 shares, representing no more than 0.12% of the total shares. The reduction will be conducted through centralized bidding, with a maximum of 1,000,000 shares to be sold. The reduction period is from April 10, 2026, to July 9, 2026. The shares to be reduced were obtained before the IPO, and the reason for the reduction is due to the company’s operational development needs.

Concerning commitments and risk warnings related to the reduction, the announcement states that the shareholder has previously made commitments regarding the shareholding ratio, number of shares held, holding period, reduction method, reduction quantity, and reduction price. Specific commitments include: if the shares are to be reduced after the lock-up period, the company will carefully comply with relevant regulations from the China Securities Regulatory Commission and the Shanghai Stock Exchange regarding shareholder reductions; the reduction plan will be formulated prudently based on the need to stabilize the stock price, conduct operations, and capital activities; the reduction will comply with relevant laws, regulations, and rules; the company will announce the reduction three trading days in advance; if the shareholder plans to reduce shares within two years after the lock-up period, the reduction price will not be lower than the issuance price. Additionally, this reduction plan is based on the shareholder’s operational development needs and is not expected to significantly impact the company’s production and operations. However, there are uncertainties regarding the timing, price, and quantity of the reduction, so investors should be aware of investment risks.

Data shows that as of September 30, 2025, Wuhan Yangtze River Communication Industry Group Co., Ltd. was the third-largest shareholder of Changfei Optical Fiber.