Core Viewpoint - The controlling shareholder, Universal Dairy Limited (UDL), plans to reduce its stake in New Dairy by up to 3% of the total share capital, amounting to approximately 487 million yuan based on the closing price on June 27, 2023, which has raised market attention given the company's stock price has doubled in the past year [1][2]. Shareholder Reduction Plan - UDL intends to sell 25.82 million shares within three months after the announcement, representing 3% of the total share capital, with a maximum of 8.61 million shares through centralized bidding and 17.21 million shares through block trading [2]. - UDL currently holds 560 million shares, accounting for 65.07% of the total share capital, and the actual controller is Liu Chang, who acquired these shares before the company went public [2]. - This marks the first significant reduction by the controlling shareholder since New Dairy's listing, and if the maximum reduction occurs, UDL's stake will decrease to 62.07%, still maintaining control [2]. Stock Performance and Financials - New Dairy operates primarily in regional markets, focusing on differentiated competition, with over 50% of its products being low-temperature items, surpassing the industry average [3]. - The stock price has seen a significant increase, from a low of 7.6 yuan in August 2024 to a peak of 21.19 yuan in 2025, reflecting a more than 160% increase [3]. - As of June 27, 2023, the stock price was 18.88 yuan, with a market capitalization of approximately 16.3 billion yuan [3]. - Despite a 2.93% decrease in revenue in 2024, the company reported a 48.46% year-on-year increase in net profit, attributed to product structure optimization and cost control [3]. Strategic Outlook and Market Reaction - New Dairy plans to continue its "Fresh Cube" strategy, focusing on low-temperature product development and expanding its cold chain distribution network by 50,000 new points, aiming to increase the revenue share of low-temperature products to 55% [4]. - Analysts note that while the reduction does not directly impact operations, it may affect market sentiment, with concerns about whether the funds will be reinvested into the company or used for individual shareholder needs [4].