Excellence New Energy (688196.SH): Analysis of Controlling Shareholder's Shareholding Reduction Event

Based on the latest information obtained, the following is a professional analysis of the shareholding reduction event by the controlling shareholder of Excellence New Energy:

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According to the company’s announcements [1][2], the controlling shareholder

plans to reduce its shareholding by no more than , accounting for of the company’s total share capital. The details are as follows:

Item	Content
Maximum Number of Shares to Be Reduced	No more than 3.8157 million shares
Reduction Ratio	3.00% of total share capital
Reduction Method	Block Trading (≤2.5438 million shares) + Concentrated Auction (≤1.2719 million shares)
Reduction Period	February 3, 2026 - May 3, 2026
Reason for Reduction	Optimize share capital structure, release stock liquidity

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, mainly due to the following reasons:

• Increased Supply
  : The 3% share reduction will increase the supply of tradable shares in the market in the short term. If demand does not grow synchronously, it may exert short-term pressure on the stock price
• Price Signal Effect
  : Shareholding reduction by major shareholders is often interpreted by the market as a judgment that the company’s intrinsic value is overestimated, which may trigger a valuation correction
• Block Trading Discount
  : Share reductions through block trading usually involve a certain discount, which may pull down the central trading price of the secondary market

According to the company’s announcement,

[2], which supports valuation stability:

• The controlling shareholder still maintains an absolute controlling stake, and the company’s governance structure remains unaffected
• The reason for the reduction is “optimizing the share capital structure and releasing stock liquidity”, which is a neutral to positive interpretation of capital operations
• The bioenergy industry benefits from the “Dual Carbon” policy orientation, and the industry fundamentals are promising in the long term

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Impact Dimension	Analysis
Market Sentiment	Share reduction by major shareholders may shake the confidence of some retail investors and trigger follow-up selling
Institutional Attitudes	Institutional investors may re-evaluate the company’s value and management’s judgment on the company’s prospects
Capital Flow	During the reduction period, attention should be paid to changes in margin trading and short selling data. As of today (January 12), the margin balance increased by 26.54% month-on-month [3], indicating that margin traders are still increasing their positions

• Controllable Reduction Ratio
  : The 3% reduction ratio is relatively moderate, and the market absorption pressure is limited
• Expected Improvement in Liquidity
  : The company stated that the purpose of the reduction is to “release stock liquidity”, which will help enhance the trading activity of the stock
• Industry Prosperity Support
  : Bioenergy is an emerging industry supported by policies, with fundamental support

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Based on the latest market data, Excellence New Energy performed actively today:

• Daily Increase
  : +15.42% (significantly outperformed the broader market) [3]
• Margin Balance
  : RMB 105.6941 million, a month-on-month increase of 26.54% [3]
• Short Selling Balance
  : RMB 0.4080 million, a month-on-month increase of 15.42% [3]

This indicates that the market still had strong attention to the company before the release of the share reduction announcement.

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• The stock price may come under pressure during the reduction window (February 3 to May 3)
• Attention should be paid to block trading discounts and the movements of institutional seats
• Beware of emotional selling caused by the market’s over-interpretation of the reduction signal

1. Fundamental Improvement
   : Pay attention to the company’s bioenergy business orders and capacity utilization rate
2. Policy Dividends
   : Policy support for the bioenergy industry under the carbon neutrality goal
3. Liquidity Changes
   : Whether the market supply and demand structure improves after the completion of the reduction

The current market gives a certain premium to the bioenergy sector on the STAR Market. Investors need to comprehensively evaluate the intrinsic value by combining financial indicators such as the company’s

[0].

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The 3% share reduction by the controlling shareholder of Excellence New Energy

, but considering the following:

1. The reduction ratio is relatively moderate and does not involve a change in control
2. The reason for the reduction announced by the company is a neutral capital operation
3. The stock price performed strongly today, and there is no obvious panic in market sentiment

. In the medium to long term, the company’s investment value still depends on the improvement of the fundamentals of the bioenergy business and industry development dynamics. It is recommended that investors view the share reduction announcement rationally and make investment decisions based on the company’s financial data and industry development trends.

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[1] Sina Finance - “Excellence New Energy: Controlling Shareholder Longyan Excellence Investment Plans to Reduce Shareholding by No More Than 3%” (https://finance.sina.com.cn/7x24/2026-01-12/doc-inhfzysm8289562.shtml)

[2] Eastmoney - “Excellence New Energy: Longyan Excellence Investment Plans to Reduce Shareholding by No More Than 3.00%” (https://finance.eastmoney.com/a/202601123615935115.html)

[3] Sina Finance - “Margin Balance of 267 STAR Market Stocks Increases Month-on-Month” (https://finance.sina.com.cn/stock/relnews/cn/2026-01-12/doc-inhfzcnx6977890.shtml)

[0] Jinling API Database