(Yicai Global) Sept. 10 -- Five shareholders of Chinese private boat builder YaGuang Technology Group planned to pare their holdings up to 25.08 percent when the firm's stock rose steeply, but most of their shares are restricted from transfer, the company said yesterday.

The Yuanjiang, Hunan province-based firm's stock price [SHE:300123] had plummeted 20 percent to CNY16.80 (USD2.46) by midmorning on the statement.

The five shareholders are controller Hunan Sunbird Holding, Jiaxing Ruilian No. 3 Equity Investment Partnership, TDG Holding, Beijing Haolan Ruidong Investment Management Center and its affiliate Beijing Haolan Tiema Investment Management Center.

Of these, Sunbird Holding intends to trim its holdings by up to 32.2 million shares, which does not exceed 3 percent of YaGuang Technology's total share capital. Jiaxing Ruilian wants to shed up to 97.3 million or 9.66 percent of the firm's shares. TDG Holding will sell 69.5 million or up to 6.9 percent. Haolan Ruidong and Haolan Tiema wishes to unload up to than 55.6 million or 5.52 percent of the total.

Jiaxing Ruilian plans to cut its holdings because of the fund's own arrangements, while Sunbird Holding, TDG Holding, Haolan Ruidong and Haolan Tiema drive to sell stems from a desire to serve their growth needs.

Jiaxing Ruilian, Haolan Ruidong, Haolan Tiema and TDG's stocks are still under sales restraints, which will be lifted on Oct. 23. These four shareholders will give effect to their reduction plan then.

YaGuang's stock rose from CNY10.58 share to CNY26.13 per share from mid-June to mid-August, a cumulative 147 percent rise. Its shares have slid since then and closed at CNY21 yesterday.

The company formed in 2003 in Yuanjiang in China's central Hunan province. The firm researches and develops, designs, produces, sells and supplies services for high-performance multi-composite material boats. The firm is a domestic provider of large yachts, corporate and official boats and special marine systems.

Editor: Ben Armour