Core Viewpoint - The controlling shareholder and actual controller of Hongqiang Co., Ltd. plans to reduce their shareholding, which will not affect the company's control or governance structure significantly [1]. Group 1: Shareholding Reduction - The controlling shareholder, Liu Lianjun, holds 92,812,375 shares, accounting for 43.86% of the total share capital, and plans to reduce up to 2,116,100 shares, representing no more than 1.00% of the total share capital, within three months starting from February 5, 2026 [1]. - The estimated cash amount from this reduction, based on the closing price of 10.86 yuan per share, is approximately 22.98 million yuan [2]. Group 2: Previous Shareholding History - Liu Lianjun initially held 57,433,100 shares, which was 47.86% of the total share capital, and has cumulatively reduced 3,933,200 shares since September 19, 2019, realizing approximately 52.71 million yuan [2]. Group 3: Fundraising Activities - In 2023, Hongqiang Co., Ltd. issued convertible bonds to unspecified investors, raising a total of 316 million yuan, with a net amount of approximately 310.86 million yuan after deducting various fees [3]. - The issuance was approved by the China Securities Regulatory Commission on August 25, 2023, and the funds were received on October 24, 2023 [3].

Core Viewpoint - The actual controller of the company and their concerted actions are reducing their holdings based on personal financial needs and planning, which does not indicate a lack of confidence in the company [1] Group 1: Company Performance - The company reported a revenue of 391.47 million yuan for the first three quarters of 2025, representing a year-on-year growth of 17.65% [1] - The net profit attributable to the parent company reached 61.98 million yuan, showing a significant year-on-year increase of 623.19% [1] Group 2: Management and Strategy - The actual controller and management team are actively monitoring the company's operations and the pressures faced in the industry [1] - The company is implementing various measures to enhance its operational and profitability levels, achieving commendable performance [1]