On November 28, Blue Whale News reported (by reporter Xu Xiaochun) that from November 15 to November 22, haining china leather market surged by 67.51% for six consecutive trading days. The company's stock price exceeded 7 yuan again after 2017, allowing hongda high-tech holding to seize the market opportunity and precisely escape at a high point after a 10-year shareholding.

On the evening of November 27, hongda high-tech holding announced that the company seized the market opportunity recently and sold 11.15 million shares of haining china leather market, with an average transaction price of 6.43 yuan per share, amounting to approximately 71.6589 million yuan (after deducting stamp duty and transaction commission).

Hongda high-tech holding mainly focuses on two business areas: fabric weaving and medical instruments. The company is primarily engaged in the production and sales of fabrics for autos and other functional fabrics, while also selling ultrasound diagnostic and treatment equipment through its wholly-owned subsidiary, Weilde.

In the first three quarters, hongda high-tech holding achieved a revenue of 0.441 billion yuan and a net income of approximately 65.6347 million yuan. The amount cashed out by hongda high-tech holding through the shareholding of haining china leather market exceeded the profits for the first three quarters of this year. However, hongda high-tech holding stated that the haining china leather market stocks sold this time are designated as financial assets measured at fair value, with changes recorded in other comprehensive income, and the transaction will not affect the company's net income for this year, but will increase the company's cash and undistributed profits.

After the shareholding was completed, hongda high-tech holding still holds 19.15 million shares of haining china leather market, accounting for about 1.95% of the company's total share capital. By the number of shares held, hongda high-tech holding remains the third-largest shareholder of haining china leather market after the shareholding reduction.

Hongda high-tech holding's shareholding in haining china leather market can be traced back to 2007. In 2007, the newly listed hongda high-tech holding, then called "hongda warp knitting," invested in haining china leather market at a price of 14.82 yuan per share based on its net asset value, becoming one of the founding shareholders of haining china leather market.

Haining china leather market was listed on the Shenzhen Stock Exchange in January 2010 with an initial issue price of 20 yuan per share, and hongda high-tech holding held 10.3257 million shares.

In hongda high-tech holding's 2012 semi-annual report, the company disclosed specific details regarding its shareholding in haining china leather market, stating that its initial investment cost was 42.9684 million yuan, while the book value of the investment in haining china leather market at the end of the period was approximately 0.539 billion yuan. In January 2014, the shares held by hongda high-tech holding as a founding shareholder were finally lifted from restrictions. During the lock-up period, the stock price of haining china leather market was mostly below its initial offering price, maintaining around 15 yuan per share.

In the year following the lifting of restrictions, in the first half of 2015, hongda high-tech holding reduced its holdings of 7 million shares in haining china leather market, generating a pre-tax investment income of 0.111 billion yuan, which affected the company's after-tax net income by approximately 93.9308 million yuan. In terms of amount, the average price for this reduction was about 15.87 yuan per share, around the beginning of 2015.

In May of the same year, hongda high-tech holding planned to further reduce its holdings in haining china leather market. At the 2014 annual shareholder meeting, a proposal was approved to authorize the chairman to dispose of available-for-sale financial assets, which included the disposal of shares in haining china leather market. At that time, the company's chairman, Shen Guofu, is still the chairman of hongda high-tech holding.

In the following month, June 2015, the stock price of haining china leather market reached a historical high of 30.99 yuan per share. However, at that time, hongda high-tech holding did not reduce its holdings in haining china leather market. Later, in response to investors' questions, hongda high-tech holding indicated that there was no urgent demand for large funds at that time and there was no intention to reduce holdings.

Subsequently, the stock price of haining china leather market continued to decline and has remained below 10 yuan per share since 2017, hovering around 4 yuan per share. The reduction plan of hongda high-tech holding has been shelved for ten years. During this period, through cash dividends or stock dividends from haining china leather market, the investment cost of hongda high-tech holding has gradually been diluted.

On the evening of November 14, the state-owned assets in Haining conducted an internal transfer of assets. The controlling shareholder of haining china leather market, Haining Asset Management Company, transferred 12% of its shares to Haining Chaosheng Technology Industrial Investment Group Co., Ltd. (hereinafter referred to as 'Chaosheng Investment Group') free of charge. At the same time, shareholders holding more than 5% of shares, the Haining Market Development Service Center Co., Ltd., transferred 18.36% of its shares to Chaosheng Investment Group free of charge.

After this transfer of state-owned equity was completed, the controlling shareholder of haining china leather market changed from the Asset Management Company to Chaosheng Investment Group, while the ultimate controller did not change, remaining the State-owned Assets Supervision and Administration Office of the Haining Municipal People's Government.

The next day, on November 15, haining china leather market opened with a price limit increase, and from November 15 to November 22, haining china leather market saw a continuous increase of 67.51% over six trading days. According to the data from the period's dragon and tiger list, there was noticeable activity from speculators from Hujiaylou, Lasa Tuanjie Road, and Liushashe.

After a brief surge, the stock price of haining china leather market quickly fell back, and as of the close on the morning of November 28, the price was 4.88 yuan per share, with the company's market cap at approximately 6.253 billion yuan. Based on the reduction average price of 6.43 yuan per share for hongda high-tech holding, the reduction actions should have concentrated on the two trading days of November 22 and 25, which was also the peak of haining china leather market in this market situation.