Former Hunan's richest man Shuai Fangwen family once again announces a reduction plan, with the stock price dropping by as much as 90%

Questioning AI: Why did Erkang Pharmaceutical’s actual controller reduce their holdings again when business improved?

Jingji News Reporter: Yan Fengfeng    Jingji Editor: Wu Yongjiu

Erykang Pharmaceutical recently released a plan for its actual controller to reduce holdings. This is the second time that the actual controller has issued a share-reduction plan within the past half year, and the shares pledged by the actual controller account for as much as 97.94% of their holdings. A reporter from The Daily Economic News found that behind the actual controller’s share-reduction plan are the company’s net profit losses that have continued for the past three years, and that the revenue from the company’s traditional pharmaceutical main business has also been shrinking for five consecutive years. However, as the company’s new energy business has expanded rapidly, its 2025 results reversed the previous trend of continued revenue decline.

In the “2014 Hurun Rich List,” Erkang Pharmaceutical Chairman Shuai Fangwen and his family jumped to become the richest person in Hunan with wealth of 9.5 billion yuan, ranking 177th on the list of the richest. With Erkang Pharmaceutical’s weak performance, the wealth of the company’s actual controller, Shuai Fangwen, also saw a sharp drop. According to data from the Hurun Rich List, from 2015 to 2021, the wealth of Mr. Shuai Fangwen and his wife was 21 billion yuan, 14.5 billion yuan, 13.5 billion yuan, 5.7 billion yuan, 6.7 billion yuan, 6.5 billion yuan, and 5.5 billion yuan respectively, showing an overall downward trend.

Judging from the stock price trend, as of April 2, Erkang Pharmaceutical’s shares closed at 4.02 yuan per share, with a total market value of about 8.292 billion yuan. Since the company’s historical peak in 2015, its stock price has seen a maximum drop of 90%.

For the full text, see: The original richest family in Hunan, Shuai Fangwen’s family, issues another share-reduction plan—its stock price drops by as much as 90%!

The Daily Economic News