Core Viewpoint - The actual controller of Fengyuzhu (603466.SH), a leading company in China's digital display industry, has announced a share reduction plan, indicating potential liquidity needs amidst declining financial performance [1][3]. Share Reduction Plans - On June 12, Fengyuzhu disclosed that shareholder Li Hui plans to reduce his holdings by up to 11.89 million shares (2% of total shares) within three months, while Shanghai Ligou Investment intends to reduce by up to 5.95 million shares (1% of total shares) [1]. - If both shareholders fully execute their plans at the closing price of 10.52 yuan per share on June 11, they could collectively cash out approximately 188 million yuan [1]. Financial Performance - Fengyuzhu's revenue grew from 1.499 billion yuan in 2017 to 2.940 billion yuan in 2021, with net profit increasing from 166 million yuan to 439 million yuan during the same period, marking five consecutive years of growth [3]. - However, the company faced a downturn starting in 2022, with revenue and net profit dropping to 1.682 billion yuan and 66 million yuan, respectively, representing declines of 42.79% and 84.95% year-on-year [3]. - In 2023, the company reported a revenue of 2.350 billion yuan and a net profit of 282 million yuan, showing year-on-year growth of 39.75% and 327.53% [3]. - Projections for 2024 indicate a revenue decline to 1.376 billion yuan (down 41.44%) and a net loss of 135 million yuan, marking the first annual loss since 2013 [3]. - The first quarter of 2023 showed a net profit of 40.27 million yuan, a significant increase of 358.25% year-on-year, but still lower than previous years' figures [3]. Historical Share Reductions - Since 2021, Li Hui and associated parties have been reducing their stakes in the company, with cumulative cash outs estimated at around 1 billion yuan [2]. - Specific reductions include 6.1904 million shares sold by Ligou Investment for approximately 118 million yuan from December 2020 to June 2021, and 8.4392 million shares sold by Xin Haoying for about 186 million yuan from September 2021 to January 2022 [2]. - Li Hui sold 20.6383 million shares between March and July 2023, cashing out approximately 230 million yuan [2].