Core Viewpoint - Recent shareholder reductions in holdings at Fuhang Microelectronics (富瀚微) indicate a trend of significant divestment, raising concerns about the company's financial health and future performance [1][2][3] Shareholder Actions - Fuhang Microelectronics' major shareholder, Jiezhi Holdings, plans to reduce its stake from 4.93% to a maximum of 3%, indicating a potential exit strategy [1][4] - Jiezhi Holdings previously held 22.42% of the company, making it the largest shareholder, and has since cashed out approximately 1.7 billion yuan through various transactions [2][12] - Another shareholder, Shanghai Langhan Enterprise Management, recently completed a reduction, cashing out approximately 177 million yuan [3][13] Financial Performance - Fuhang Microelectronics has faced declining financial performance, with net profit dropping from 398 million yuan in 2022 to around 250 million yuan in 2023 and 2024, and a significant decline to 14.64 million yuan in Q1 2025 [3][17] - The company's revenue has also decreased, with 2023 and 2024 revenues reported at 1.82 billion yuan and 1.79 billion yuan, respectively, marking a decline of 13.65% and 1.76% [17] - Since its IPO in 2017, the company has raised approximately 1.2 billion yuan while distributing only about 180 million yuan in dividends, reflecting a low average dividend payout ratio of around 10.31% [17] Business Dependency - Fuhang Microelectronics heavily relies on Hikvision, which accounts for over 60% of its revenue, raising concerns about customer concentration risk [16][17] - In 2024, sales to Hikvision were projected to be 620 million yuan, representing 66.69% of total revenue [16]