Core Viewpoint - The stock price of Zhongtai Co., Ltd. experienced a significant drop following the announcement of share reductions by key executives, despite a strong performance forecast for the third quarter [1][2]. Group 1: Share Reduction Announcement - Zhongtai Co., Ltd. announced that its general manager, Zhang Youhu, plans to reduce his holdings by 3 million shares, while other executives plan to sell a total of 321.05 million shares, representing 0.83% of the company's total equity [1][2]. - The total cash raised from these reductions is estimated to be approximately 67.42 million yuan, based on the closing price on September 26 [1]. - The timing of the share reduction coincides with a high stock price, as Zhongtai's stock has increased by 76.38% year-to-date [1]. Group 2: Financial Performance and Forecast - Zhongtai Co., Ltd. expects a net profit growth of over 70% for the third quarter, attributed to delayed shipments from the second quarter [1][2]. - The company reported a projected revenue of 2.717 billion yuan for 2024, a decrease of 10.86% year-on-year, and a net loss of 78 million yuan, marking its first loss since going public [3]. - In the first half of 2025, the company anticipates a net profit of 135 million yuan, a year-on-year increase of 9.14%, although revenue is expected to decline by 4.79% to 1.302 billion yuan [3]. Group 3: Operational Challenges - The decline in performance is attributed to significant impairment signs at Zhongtai's subsidiary, Shandong Zhongyi Gas, and challenges in the deep-cooling equipment sales segment due to longer delivery cycles and rising procurement costs [3][4]. - The company has faced substantial revenue and profit declines in its urban gas segment due to increased costs and reduced downstream demand [4].