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

After experiencing a remarkable surge in stock price and turning losses into profits, key shareholders of Kaimete Gas—backed by Hunan state-owned assets, including Caixin Asset Management and its concerted parties—have initiated a new round of share reduction plans. This is the third major share reduction since 2025, with previous rounds totaling nearly 6% of shares sold. Alongside the company’s stock price soaring and major shareholders reducing their holdings, the number of shareholder accounts has increased more than threefold.

It is worth noting 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, significant stock price volatility, the surge in shareholder numbers, and the consecutive reductions by major state-owned shareholders?

Hunan State-Owned Shareholders Plan Large-Scale Reduction Again After Major Sale

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 parties—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 freely tradable shares, representing up to 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 parties (Changqin No.1 and Caixin Jingxin) held a total of 42.92 million shares, accounting for 6.17% of the company’s total shares.

Notably, since 2025, Caixin Asset and its concerted parties 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 20.71 million shares, accounting for 2.98%. This means that within 2025, this shareholder group has reduced nearly 6% of the company’s shares.

According to Daily Economic News, the shares held by Caixin Asset and its concerted parties originated from an agreement transfer by the controlling shareholder of Kaimete Gas. On November 24, 2019, the company’s controlling shareholder, Haoxun Technology, signed a Share Transfer Agreement to transfer 62.37 million shares (10% 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.) signed another Share Transfer Agreement with Caixin Asset, transferring 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 parties held a combined 22.4467% of shares.

Tianyancha data shows that Caixin Asset’s controlling shareholder is Hunan Caixin Investment Holding Co., Ltd., with the actual controller being the Hunan Provincial People’s Government.

Large Stock Incentive Expenses and Asset Impairment Losses Cause Performance Volatility

The significant reduction by Caixin Asset occurred amid a sharp rise in Kaimete Gas’s stock price. In 2025, the company’s stock price surged remarkably. Data shows that from a low of 5.51 yuan (pre-restore) in January 2025, it peaked at 30 yuan in October 2025, with an increase of over 400% within the year. Although 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 closing price was 19.98 yuan, with a TTM P/E ratio of 231 and a P/B ratio of 6.72.

Alongside the stock price surge, the shareholder structure 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 indicates a quick dispersal of shares.

The company’s stock price rise in 2025 is likely linked to improved performance. According to the company’s 2025 performance forecast, Kaimete Gas expects net profit attributable to shareholders of 65 million to 80 million yuan, turning profitable from a loss of 48.57 million yuan in 2024.

The 2025 performance improvement mainly results from increased sales of core products, significant reduction in stock incentive expenses, and lower asset impairment losses. In 2024, the company recognized a one-time share payment expense of 87.40 million yuan (including 78.36 million yuan in 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 is evident that the large fluctuations in performance 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 stock price surge related to performance volatility? Does Caixin Asset’s reduction impact the stock price? The Daily Economic News sent interview requests to the company but has not received a reply as of press time.

Public information shows that Kaimete Gas’s main business involves using petrochemical tail gases (waste gases) and torch gases as raw materials to develop and produce various gas products. Its main products include high-purity carbon dioxide, hydrogen, liquefied gases, pentane, and electronic specialty gases. Data from Tonghuashun indicates the company is involved in concepts such as chips, lithography machines, and hydrogen energy.