Analysis of the Share Disposal by the Controlling Shareholder of Limin Co., Ltd. (002734.SZ)

Based on the latest data and results from analytical tools available to me, below is a comprehensive analysis of the share disposal by the controlling shareholder of Limin Co., Ltd. (002734.SZ):

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According to public information[1], Li Ming, controlling shareholder of Limin Co., Ltd., cumulatively reduced his holdings in the company by 11.63 million shares via block trades and call auctions between August 15 and October 22, 2025, accounting for 2.6437% of the company’s total share capital, with cash proceeds of approximately

. This represents another large-scale share disposal following Li Ming’s 2019 reduction of 1.86% of the company’s shares (cashing out tens of millions of RMB)[1].

Time Node	Price	Remarks
Early 2025	~RMB8/share	Year-start low
June 12, 2025	RMB24.87/share	Annual high
August 2025 (start of disposal)	~RMB22/share	Near high-price zone
Current (January 2026)	RMB16.83/share	32% pullback from high

Data shows that the period of the controlling shareholder’s share disposal (August 15 - October 22) coincided with the early stage of the stock’s pullback from its high, during which the share price fell by approximately

, with the disposal price range at around RMB17-RMB22 per share[1]. In terms of timing, the controlling shareholder conducted the disposal when the share price was in a relatively high range.

Based on the latest financial data[0]:

• Current P/E Ratio
  : 17.62x
• P/B Ratio
  : 2.04x
• ROE
  : 13.34%
• Net Profit Margin
  : 9.37%

From a valuation perspective, Limin Co., Ltd.'s current P/E ratio of 17.62x is within a reasonable range for the pesticide industry, but the following factors need to be considered:

Financial Indicator	Figure	Industry Comparison
Gross Profit Margin (H1 2025)	26.45%	Sharp increase from 17.74% in H1 2024[1]
YTD Gain	+109.85%	Significantly higher than industry average
6-Month Price Change	-19.93%	Obvious pullback

1. Precise Disposal at High Levels
   : After the stock price surged over 400% in a year (rising from around RMB5 per share at the start of the year to over RMB24 at its peak), the controlling shareholder conducted the share disposal in the early stage of the price pullback. This “cashing out at highs” behavior is often interpreted by the market as a rejection of the current valuation[1].
2. Stock Price Diverges from Moving Averages
   : While the current share price is slightly above the 20-day moving average (+3.92%), it has broken below the 60-day moving average (-2.55%), indicating a weakening medium-term trend[0].
3. Management Pay Hikes Coincide with Staff Reductions
   : Against the backdrop of performance growth, the management received collective pay hikes in 2024 (Li Xinsheng, the controlling shareholder’s son, saw his annual salary reach RMB1.8526 million, an increase of RMB1.13 million; Li Yuanyuan, his daughter, saw her annual salary reach RMB1.8351 million, an increase of RMB1.43 million), while the company reduced its workforce (cutting over 400 employees in a year, an 8% reduction)[1]. This profit distribution structure merits investor attention.
4. RSI Indicator
   : The current RSI is 62.70. While it has not entered the overbought zone, potential adjustment pressure warrants caution[0].

1. Robust Fundamentals Remain
   : The company’s products align with the national green pesticide policy orientation, and prices of core products such as mancozeb and chlorothalonil have been continuously raised, leading to a significant improvement in gross profit margin[1].
2. Performance Growth Support
   : The company has raised product prices multiple times in 2025, and performance is expected to maintain growth, providing some performance support for its valuation[1].
3. Compliant Disposal
   : The disposal volume (2.64%) is within the 3% limit announced by the company, making it a normal capital operation within regulatory compliance.
4. Controlling Shareholder Remains a Major Holder
   : After the disposal, Li Ming and his children still hold a combined 107.6 million shares, maintaining a high shareholding ratio[1].

Dimension	Assessment	Explanation
Disposal Motivation	Neutral to Slightly Negative	Disposal at high levels + history of consecutive disposals merits attention
Valuation Level	Reasonably High	Excessive YTD gain requires time to digest valuation
Fundamentals	Robust and Positive	Environmental policies + product price hikes support performance
Technical Indicators	Weak	Broken below medium-term moving average, trading below MACD signal line

: After a sharp stock price rally, the controlling shareholder cashed out RMB217 million via share disposal, . This behavior should alert investors, but should not be over-interpreted. Combining the company’s fundamentals and industry prospects, Limin Co., Ltd. still has investment value, but its current valuation has already fully reflected optimistic expectations.

: Investors should closely monitor whether further disposals occur, the company’s full-year 2025 performance, and the price trend of pesticide products. It is recommended to make investment decisions only after fully understanding changes in the company’s fundamentals.

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[1] Weikehao - “Controlling Shareholder and Management Receive Collective Pay Hikes, While Profit-Surging Limin Co., Ltd. Cuts Workforce” (https://mp.ofweek.com/biotech/a656714590617)

[0] Jinling AI Financial Database - Real-Time Market and Financial Data for Limin Co., Ltd. (002734.SZ)