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01 Some shares of XGIMI Technology (688696) may be sold by shareholders, and Zhongnan Culture plans to sell no more than about 924,700 shares.

In 022024, XGIMI Technology was reduced by Baidu's shareholders, and Baidu Netcom and Baidu Biwei reduced their holdings by about 980,300 shares and 240,700 shares respectively.

03 Due to the reduction of shareholder holdings, XGIMI Technology's performance and stock price performance since 2024 have not been satisfactory, and its net profit will plummet in 2023, turning from profit to loss in the first three quarters of 2024.

04 Despite this, XGIMI Technology disclosed on September 30, 2024 that the company intends to repurchase some A shares for 150 million to 300 million yuan, and as of December 31, 2024, it has repurchased about 2.0568 million shares, paying about 164 million yuan for the repurchase amount.

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Some of the shares of XGIMI Technology (688696) may be "liquidated and sold" by shareholders. On the evening of January 3, Zhongnan Culture (002445) disclosed that the company intends to sell no more than about 924,700 shares of XGIMI Technology.

Zhongnan Culture said that the company originally held about 1,759,400 shares of XGIMI Technology (after the implementation of the annual equity distribution in 2021), accounting for 2.51% of the total share capital of XGIMI Technology, and on March 3, 2022, the above shares were lifted from the restriction on sale and all of them were converted into unrestricted tradable shares, and the source of the shares was the shares before the initial public offering of XGIMI Technology. Since June 20, 2022, the company has sold about 834,600 shares of XGIMI Technology. Up to now, the company still holds about 924,700 shares of XGIMI Technology, accounting for about 1.32% of its total share capital.

In the view of Zhongnan Culture, the sale of the company's stock assets is conducive to improving the efficiency of asset operation, optimizing the company's asset structure, promoting the sustainable and healthy development of the company and maximizing shareholder value, and there is no harm to the interests of the company and all shareholders, especially small and medium-sized shareholders.

Before Zhongnan Culture, in 2024, XGIMI Technology was also reduced by the shareholders of the "Baidu Department". At that time, XGIMI Technology said that its shareholder Beijing Baidu Netcom Technology Co., Ltd. (hereinafter referred to as "Baidu Netcom") held about 4,507,400 shares of the company, accounting for 6.44% of the total share capital, and Beijing Baidu Biwei Enterprise Management Center (Limited Partnership) (hereinafter referred to as "Baidu Biwei") held about 583,600 shares of the company, accounting for 0.83% of the total share capital. Baidu Netcom and Baidu Biwei are enterprises controlled by the same actual controller and are acting in concert. From May 27 to August 25, 2024, Baidu Biwei reduced its holdings of about 240,700 shares of the company through bidding transactions and block transactions, accounting for 0.34% of the company's total share capital; Baidu Netcom reduced its holdings of about 980,300 shares of the company through bidding transactions and block transactions, accounting for 1.4% of the company's total share capital.

Behind the successive shareholder reductions, XGIMI Technology's performance and stock price performance since 2024 are not satisfactory. In terms of performance, from 2021 to 2023 and the first three quarters of 2024, the company's attributable net profit will be about 483 million yuan, 501 million yuan, 121 million yuan, and -40.3308 million yuan respectively, and the company's net profit will turn from profit to loss in the first three quarters of 2024 after a sharp decline in 2023.

In terms of stock price, the trading market shows that from January 3, 2024 to January 3, 2025, the stock price of XGIMI Technology fell by nearly 15% under the overall market rise of more than 8%. In stages, from January 3 to September 23, 2024, the company's stock price has fallen by 52.59%; Since September 24, XGIMI Technology's share price has rebounded, and the trading market shows that from September 24, 2024 to January 3, 2025, the company's stock price has risen by 79.48%. As of the latest trading day on January 3, the company's share price was 93.51 yuan per share, with a total market value of about 6.546 billion yuan.

It is worth mentioning that XGIMI Technology was listed in March 2021, and the company's issue price was 133.73 yuan / share, which was once a 100 yuan stock that attracted much attention, and the opening price of the company on the first day of listing reached 511.11 yuan / share, and the closing price on the first day of listing was 530.01 yuan / share.

An Guangyong, an expert of the Credit Management Professional Committee of the China Mergers and Acquisitions Association, told Beijing Business Daily that the continuous reduction of shareholders of listed companies may weaken investors' trust in the company's management and business prospects, and affect long-term investment willingness. If the listed company has a net profit loss, the company needs to speed up the pace of performance recovery, otherwise the continued poor performance may further hit the stock price performance, and in the highly competitive environment of the industry, the company also needs to strengthen cost control and improve profitability.

In addition, it is worth mentioning that since 2024, XGIMI Technology has also given a "disk protection" initiative. For example, on September 30, 2024, XGIMI Technology disclosed that the company intends to repurchase part of the company's issued RMB ordinary shares (A shares) through the Shanghai Stock Exchange trading system with the company's own funds or borrowings from financial institutions and over-raised funds, with an amount of 150 million to 300 million yuan. As of December 31, 2024, the company has repurchased about 2,056,800 shares of the company through the Shanghai Stock Exchange trading system through centralized bidding, and the cumulative amount of repurchased shares has been about 164 million yuan (excluding transaction costs such as handling fees and transfer fees).

In response to the relevant situation, a reporter from Beijing Business Daily called XGIMI Technology for an interview, but no one answered the phone.