Hotgen(SH:688068) Zhong Guo Ji Jin Bao·2025-06-25 16:17Core Viewpoint - The second largest shareholder of Hotgen Biotech, Zhou Xin, plans to reduce his stake in the company after a significant increase in stock price, indicating potential liquidity needs and market volatility [2][5]. Shareholder Actions - Zhou Xin intends to sell up to 1.8 million shares, representing approximately 1.94% of the total share capital, to meet personal funding requirements [2]. - As of the announcement date, Zhou Xin holds 6.8066 million shares, accounting for 7.342% of the total shares [3]. Financial Performance - In 2024, Hotgen Biotech reported a revenue of 511 million yuan, a year-on-year decrease of 6.74%, and a net loss of 191 million yuan, a significant decline of 760.4% [7]. - The company experienced a surge in performance during the COVID-19 pandemic in 2021, but both revenue and stock price have since declined sharply [6]. Historical Cashing Out - Prior to the current planned reduction, Zhou Xin has already cashed out approximately 2.1 billion yuan from his holdings in Hotgen Biotech since its IPO [4]. - His previous cashing out included approximately 21.59 million yuan in 2017 and 65.59 million yuan in 2018, totaling around 87.17 million yuan over those two years [4]. Market Context - Hotgen Biotech's stock price has seen a dramatic increase of over 6 times since late September 2024, similar to a previous surge of 5 times in April 2021 [5]. - As of June 25, 2024, the stock closed at 137.2 yuan per share, giving the company a market capitalization of 12.7 billion yuan [11]. Strategic Developments - The company is focusing on innovative biopharmaceutical technologies through its "Future Technology Research Institute," with strategic investments in companies developing cutting-edge antibody and nucleic acid drugs [11].