Core Viewpoint - The significant drop in Yingke Medical's stock price is primarily attributed to the announcement of substantial share reductions by the company's executives, raising concerns among investors about potential changes in the company's operations and future performance [1][2][5]. Group 1: Stock Performance - On June 2, Yingke Medical's stock price fell by 20%, closing at 114.12 yuan per share, with a market value loss exceeding 10.3 billion yuan in a single day [1][2]. - The stock experienced a sharp decline, opening down 17.2% and hitting the daily limit down multiple times during trading [1]. - The stock has decreased by 58.69% from its peak of 299.99 yuan per share earlier in the year [6]. Group 2: Executive Share Reduction - The actual controller and chairman, Liu Fangyi, plans to reduce his holdings by up to 21.76 million shares, representing 6% of the total share capital, within six months starting from June 24 [2]. - Other executives, including the general manager and financial director, also plan to reduce their holdings, with total potential reductions amounting to approximately 22.01 million shares [2]. - If calculated at the closing price of 142.65 yuan per share on June 1, the total cashing out by these executives could reach around 3.14 billion yuan, with Liu Fangyi alone accounting for 3.1 billion yuan [2]. Group 3: Market Reaction and Investor Sentiment - The simultaneous share reductions by multiple executives have led to heightened scrutiny and skepticism among investors regarding the company's future prospects [4][5]. - Investors have raised questions about the reasons behind the large-scale reductions, expressing concerns about undisclosed information and potential changes in the company's operations [5]. - The market's reaction has been overwhelmingly negative, with discussions in investor forums reflecting dissatisfaction with the executives' actions [4]. Group 4: Company Performance and Future Outlook - In 2020, Yingke Medical reported a revenue of approximately 13.84 billion yuan, a year-on-year increase of 564.29%, and a net profit of about 7.01 billion yuan, up 3829.56% [7]. - The company has continued to experience high growth in the first quarter of this year, with a net profit of approximately 3.74 billion yuan, a year-on-year increase of 2791.66% [7]. - Despite the strong performance, analysts caution that if the pandemic is controlled, the demand for protective equipment may decline, potentially leading to an oversupply situation in the global market [7].