Biyin Lefen's former general manager announced increased holdings after cashing out for 9 months; the current general manager plans to increase holdings by up to 200 million yuan, and despite declining performance, it has attracted attention from multiple institutions!

The Daily Economic News Reporter｜Yan Fengfeng    The Daily Economic News Editor｜Wu Yongjiu

Biyin Lefen’s employee representative director and former general manager Shen Jindong reduced his holdings and cashed out nearly 80 million yuan in mid-2025 at an average price of 16 yuan, a relatively low level. However, nine months later, he announced that he would increase his holdings by investing up to 100 million yuan, while Biyin Lefen’s current share price has risen to 17.34 yuan.

Shen Jindong’s share-increase plan is not an isolated case. A month ago, the son of the company’s actual controller and the current general manager, Xie Yong, also launched a share-increase plan of up to 200 million yuan. Behind the consecutive increases by these two key figures is the situation that the company’s net profit for the first three quarters of 2025 declined by nearly 20% and, in this bull market, the company’s share price has clearly underperformed the broader market. However, this has not stopped multiple institutions from remaining optimistic about the company.

On the evening of March 24, Biyin Lefen released a highly attention-grabbing announcement: the company’s employee representative director and former general manager Shen Jindong plans to increase his holdings of the company’s shares through centralized bidding transactions over the next 6 months, with the amount not less than 50 million yuan and not more than 100 million yuan.

This news has attracted attention in the capital markets, not only because the share-increase amount is huge, but also because of Shen Jindong’s special identity—employee representative director—and the fact that he had previously reduced holdings in large amounts when the share price was at a relatively low level.

Public information shows that Shen Jindong was born in 1975 and holds an EMBA degree from Jinan University. He has previously served as the vice chairman of the Guangdong Apparel and Clothing Industry Association. His professional career is closely tied to Biyin Lefen: from March 2003 to February 2012, he served as the company’s executive vice general manager. From February 2012 to April 2025, he served as the company’s general manager; since February 2012, he has served as a director of the company. He is currently the company’s employee representative director and Chief Strategy Officer.

During his tenure as general manager, Shen Jindong’s 2024 compensation was 1.1753 million yuan, which ranks in the middle-to-lower range among general managers of listed companies in Guangdong Province. Data compiled by reporters from The Daily Economic News based on Tonghuashun shows that in 2024, the average annual salary of general managers of listed companies in Guangdong Province was 1.68 million yuan, and the compensation median was 1.16 million yuan.

However, salary is only the tip of the iceberg of Shen Jindong’s wealth. What truly places him in the ranks of “wealthy employee representative directors” is his equity in the company.

According to the announcement, before implementing this share increase, Shen Jindong held 14.739 million shares, accounting for 2.58% of the company’s total share capital. Based on the closing price of 17.34 yuan on March 25, the market value of this stake is approximately 256 million yuan.

What is even more striking is Shen Jindong’s actions last year. Between June 10 and June 26, 2025, he reduced 4.913 million shares through centralized bidding transactions, with the sale price range from 15.4 yuan per share to 16.81 yuan per share. Based on the average selling price of 16.06 yuan, the amount of cash generated from this reduction was approximately 78.90 million yuan.

It is worth noting that the average price at which Shen Jindong reduced his holdings last year was 16.06 yuan (if the company’s dividends after the reduction are considered, the reduced average price on a pre-rights-adjusted basis is 15.54 yuan). Currently, Biyin Lefen’s share price is around 17.34 yuan, which is at a relatively high level for the company over the past year. This means that nine months after completing the reduction, Shen Jindong may have to repurchase the company’s shares at a price higher than last year’s selling price.

Judging from the company’s share price performance, it has clearly underperformed the broader market. Against the backdrop of the bull market, the company’s share price hit a new low of 14.74 yuan on January 29 this year. From that date to now, the cumulative increase in the share price has been 16.30%.

Shen Jindong’s share-increase is not an isolated incident. Right around one month earlier, the company’s controlling shareholder’s acting-in-concert party and current general manager, Xie Yong (a son of actual controller Xie Bingzheng), also announced a share-increase plan: he intends to increase his holdings by not less than 100 million yuan and not more than 200 million yuan within the next 6 months from the date of the announcement (February 28).

The announcement shows that Xie Yong had cumulatively increased his holdings of the company’s shares by 4.1853 million shares between March 6 and March 16, 2026, accounting for 0.73% of the company’s total share capital.

Although there are two important shareholders increasing their holdings, the company’s net profit for the first three quarters of 2025 still declined. In the first three quarters of 2025, the company achieved operating revenue of 3.201 billion yuan, up 6.71% year on year; however, net profit attributable to the parent company was 620 million yuan, down 18.70% year on year.

For the decline in Biyin Lefen’s net profit for the first three quarters of 2025, a research report from Northeast Securities believes that, in addition to the overall weakness in apparel retail, there is also a surge in short-term expenses resulting from the company’s initiatives around the youthfulness of its main brand, nurturing new brands, and developing e-commerce. However, Northeast Securities expects that, with the gradual improvement at the terminal level and the gradual stabilization of expense spending, the company’s operations will return to a steady growth trend starting in 2026.

Although Biyin Lefen’s third-quarter performance declined, the share-increase plan of the company’s controlling shareholder’s acting-in-concert party has clearly given the market considerable confidence, which can be seen from the number of institutional research reports. After the controlling shareholder released its share-increase plan, within less than one month, no fewer than 7 institutions had issued research reports expressing optimism about the company.

Public information shows that Biyin Lefen’s main business includes the research and development and design of high-end apparel, brand operations, the construction of its marketing network, and supply chain management. The company is committed to meeting the multi-scenario clothing needs of elite groups and their pursuit of a refined and beautiful life.

Disclaimer: The content and data in this article are for reference only and do not constitute investment advice. Please verify before using this information. Operate at your own risk.

Cover image source: Meiri Media Asset Library

Massive information, precise interpretation—everything is on Sina Finance APP