Kaimeite Gas Stock Price Surges as State-owned Shareholders Execute Large-scale Reduction Plans, Stock Incentive Expenses and Asset Impairment Cause Two-year Performance Fluctuations

Everyday Economic News Reporter | Yan Fengfeng Everyday Economic News Editor | Wu Yongjiu

After the stock price experienced a remarkable surge and the company’s performance turned profitable, key shareholders of Kaimete Gas—backed by Hunan state-owned assets, including Caixin Asset Management and its concerted actors—initiated a new round of share reduction plans. This is the third major share reduction since 2025, with the previous two rounds totaling nearly 6% of shares sold. Alongside the company’s soaring stock price and significant shareholder reductions, the number of shareholder accounts has increased more than threefold.

It is noteworthy that although the company forecasted a turnaround in 2025, its performance fluctuations are closely related to large stock incentive expenses and asset impairment losses recognized in 2024. So, is there a connection between the company’s performance, the sharp fluctuations in stock price, the surge in shareholder numbers, and the consecutive reductions by major state-owned shareholders?

On March 13, 2026, Kaimete Gas announced that its shareholder, Hunan Caixin Asset Management Co., Ltd. (hereinafter referred to as Caixin Asset), and its concerted actors, Hunan Caixin Changqin No.1 Fund Partnership (Limited Partnership) (hereinafter referred to as Changqin No.1), and Hunan Caixin Jingxin Investment Partnership (Limited Partnership) (hereinafter referred to as Caixin Jingxin), plan to reduce, through centralized bidding and/or block trades, no more than 20.86 million unrestricted circulating shares, representing no more than 3% of the company’s total share capital. The reduction period is from April 7, 2026, to July 6, 2026, due to the shareholders’ own funding needs.

In this plan, Caixin Asset intends to reduce no more than 10.25 million shares (not exceeding 1.474% of total shares), Caixin Jingxin no more than 6.69 million shares (not exceeding 0.962%), and Changqin No.1 no more than 3.92 million shares (not exceeding 0.564%). Before this reduction, Caixin Asset and its concerted actors (Changqin No.1 and Caixin Jingxin) held a total of 42.92 million shares of Kaimete Gas, accounting for 6.17% of the company’s total shares.

It is worth noting that since 2025, Caixin Asset and its concerted actors have completed two share reduction plans. From November 28 to December 11, 2025, they sold a total of 2.086 million shares, representing 3% of the total shares. From June 6 to September 1, 2025, they sold a total of 20.73 million shares, accounting for 2.98%. This means that within 2025, this shareholder group has reduced nearly 6% of the company’s shares.

The Daily Economic News reporter found that the shares held by Caixin Asset and its concerted actors originated from agreements with the controlling shareholder of Kaimete Gas. The company’s controlling shareholder, Haoxun Technology, signed a Share Transfer Agreement on November 24, 2019, to transfer 62.37 million shares (10.00% of total shares) to Caixin Changqin No.1 Fund at 5.00 yuan per share, with registration completed on December 30, 2019.

On February 17, 2020, Haoxun Technology (formerly Hunan Asset Management Co., Ltd.) signed another Share Transfer Agreement with Caixin Asset, agreeing to transfer 77.63 million shares (12.4467%) at 5.64 yuan per share, with registration completed on March 20, 2020. At that time, Caixin Asset and its concerted actors held a total of 22.44% of shares.

Tianyancha data shows that Caixin Asset’s controlling shareholder is Hunan Caixin Investment Holding Co., Ltd., which is controlled by the Hunan Provincial People’s Government.

The large-scale reduction by Caixin Asset occurred against the backdrop of a significant rise in Kaimete Gas’s stock price. In 2025, the company’s stock price surged astonishingly. Data shows that from a low of 5.51 yuan (pre-rights adjustment) in January 2025, it soared to a high of 30 yuan in October 2025, with an increase of over 400% year-to-date. Even though the stock price retreated to around 20 yuan recently, a decline of over 30% from the peak, it remains at a relatively high level in recent years. As of March 13, the stock closed at 19.98 yuan, with a TTM P/E ratio of 231 and a P/B ratio of 6.72.

Along with the sharp rise in stock price, the shareholder structure of Kaimete Gas changed significantly. As of September 30, 2025, the total number of shareholders reached 192,700, an increase of 118,500 (159.58%) from June 30, 2025, when there were 74,200. Compared to March 31, 2025, with 44,400 shareholders, the number more than tripled in half a year. The rapid increase in shareholder accounts indicates a quick dispersal of shares.

The company’s stock price surged significantly in 2025, which may be related to improved performance. According to the company’s 2025 performance forecast, Kaimete Gas expects to achieve net profit attributable to parent of 65 million to 80 million yuan, turning profitable from a loss of 48.57 million yuan in the same period in 2024.

The 2025 performance improvement mainly benefited from increased sales of main products driving revenue growth, a significant reduction in stock incentive expenses, and a decrease in asset impairment losses. In 2024, the company recognized a one-time share payment expense of 87.40 million yuan (including 78.36 million yuan recorded as non-recurring gains and losses) due to terminating the 2022 restricted stock incentive plan. No such expenses occurred in 2025. Additionally, in 2024, the company recognized asset impairment losses of 33.60 million yuan, while in the first three quarters of 2025, impairment losses totaled 13.24 million yuan.

It can be seen that the performance fluctuations in 2024 and 2025 are closely related to the company’s handling of stock incentives and asset impairments. Why doesn’t the company choose a smoother accounting approach, recognizing stock incentives and impairments gradually to stabilize performance? Is the company’s stock price surge related to its performance volatility? Does Caixin Asset’s reduction impact the stock price? The Daily Economic News reporter sent an interview email to the company but has not received a reply as of press time.

Public information shows that Kaimete Gas’s main business involves developing and producing various gases from petrochemical exhaust gases (waste gases) and torch gases. Its main products include high-purity carbon dioxide, hydrogen, liquefied gases, pentane, and electronic specialty gases. Data from Wind shows the company is involved in concepts such as chips, lithography machines, and hydrogen energy.

Cover image source: Daily Economic News Media Library