Core Viewpoint - The former actual controller of Huatu Shanding, Che Lu, plans to reduce his stake in the company by up to 3%, potentially cashing out approximately 386 million yuan, indicating a trend of significant share reductions by the former controller amid concerns about the company's performance [2][5][10]. Group 1: Shareholding and Reduction Plans - Che Lu currently holds 16.53% of Huatu Shanding's shares, making him the second-largest shareholder [4][6]. - This planned reduction marks Che Lu's fourth attempt to cash out, with the latest reduction scheduled between June 19 and September 18, 2025 [4][6]. - The shares Che Lu intends to sell are sourced from shares acquired before the company's IPO and from capital reserve conversions [4]. Group 2: Financial Performance and Market Context - Huatu Shanding's core business includes non-degree training and architectural design, with non-degree training being the primary focus [3][10]. - The company has faced poor performance since its change of ownership in 2019, with a notable decline in revenue and profits until a recent recovery in 2024, where revenue increased by 1046.34% year-on-year [10][11]. - In the first quarter of 2024, the company reported a revenue of 828 million yuan and a net profit of 121 million yuan, marking significant growth compared to previous years [11]. Group 3: Historical Context and Ownership Changes - Huatu Shanding was formerly known as Shanding Design and underwent a change in control in 2019, leading to a significant ownership transfer and a rebranding to Huatu Shanding [6][7]. - The ownership transition involved a complex arrangement where Huatu Education's assets were effectively injected into Huatu Shanding, aiming to pivot the company's focus towards education [10][11]. - Che Lu has previously cashed out significant amounts, totaling nearly 800 million yuan through various share reductions since the company's ownership change [9].