Core Viewpoint - Tianjin Sequoia and Beijing Sequoia plan to reduce their holdings in Yirui Technology by up to 2% due to their own funding needs, marking the second reduction plan in the past year [2][3] Shareholding Reduction Plan - The reduction will be executed through block trading, with a total of up to 4,004,400 shares being sold, representing no more than 2% of Yirui Technology's total shares, to be implemented within three months from August 15 to November 14 [3] - The estimated market value of the shares to be sold is approximately 352 million RMB, based on the closing price of 87.99 RMB per share on July 23 [7][10] Previous Reduction History - In the previous reduction from September 30 to November 1, 2024, Tianjin Sequoia and Beijing Sequoia sold a total of 2,855,772 shares at prices ranging from 113.42 RMB to 123.03 RMB per share [8][10] Financial Performance - Yirui Technology has experienced a decline in net profit over recent years, with net profits of 641 million RMB in 2022, 607 million RMB in 2023, and 465 million RMB in 2024, reflecting a decrease of 23.43% year-on-year [11][12] - The company's revenue for 2024 was approximately 1.83 billion RMB, a decrease of 1.74% compared to 2023 [12] - In the first quarter of 2025, Yirui Technology reported a net profit of 143 million RMB, a year-on-year increase of 2.74%, but a decrease of 9.19% in net profit after excluding non-recurring items [13][14] Market Context - As of July 23, Yirui Technology's stock price was 87.99 RMB, with a market capitalization of 17.62 billion RMB, reflecting a decline of 2.46% [16]

Core Viewpoint - Shareholders Tianjin Sequoia and Beijing Sequoia plan to reduce their holdings in Yirui Technology by no more than 2% due to personal funding needs, marking the second reduction plan in the past year [2][3][5]. Summary by Sections Shareholder Reduction Plan - Tianjin Sequoia and Beijing Sequoia intend to reduce a total of up to 4,004,367 shares, representing 2% of Yirui Technology's total share capital, through block trading from August 15 to November 14, 2025 [3][6]. - The shares to be reduced are from the capital reserve converted into share capital before and after the IPO, with the reason cited as personal funding needs [3][6]. Previous Reduction Activities - In the previous year, from September 30 to November 1, 2024, Tianjin Sequoia and Beijing Sequoia reduced a total of 2,855,772 shares at prices ranging from 113.42 to 123.03 yuan per share, realizing approximately 3.24 billion to 3.51 billion yuan [9][10]. Current Shareholding Status - As of now, Tianjin Sequoia holds 11,785,900 shares (5.89% of total shares), while Beijing Sequoia holds 5,547,300 shares (2.77% of total shares) [10]. Financial Performance - Yirui Technology's net profit has been declining, with figures of 6.41 billion yuan in 2022, 6.07 billion yuan in 2023, and 4.65 billion yuan in 2024. The net profit after deducting non-recurring gains and losses was 5.17 billion yuan, 5.91 billion yuan, and 4.39 billion yuan for the same years [12][13]. - In the first quarter of 2025, the net profit attributable to shareholders was 1.43 billion yuan, a year-on-year increase of 2.74%, while the net profit after deducting non-recurring gains and losses decreased by 9.19% [14][15]. Market Conditions - The industry in which Yirui Technology operates is experiencing weak downstream demand, and the company's product gross margin is sensitive to changes in selling prices and product structure. A decline in downstream demand or increased industry competition could lead to a decrease in product prices [17].