Many people were confused: the artificial intelligence sector clearly has bona fide leaders like Huasheng Tianch, Tuowei Information, and Industrial Fullwon, but when the annual reports came out, Morgan Stanley, Goldman Sachs, Barclays, and UBS—four major foreign investment banks—surprisingly collectively entered the top ten tradable shareholders of an obscure AI stock riding on the concept, only to be precisely harvested by major shareholders reducing their holdings. It was truly unexpected.

By reviewing annual report data, it can be discovered that among companies that have disclosed annual reports, Shuhua Sports is the only A-share company that was simultaneously newly entered into the top ten tradable shareholders by these four international investment banks.

However, from a fundamental perspective, this company is not impressive: net profit has declined overall over the past five years, revenue growth is lackluster, and while it carries popular concepts such as artificial intelligence, Harmony OS, Huawei, and cross-strait relations, compared to mainstream AI core targets, it can only be considered a marginal, obscure variety with obvious gaps in recognition.

Even more dramatically, foreign capital just entered in Q4, and the major shareholders immediately reduced their holdings. From last December to now, in less than three months, the major shareholders have already reduced holdings three consecutive times to cash out, essentially treating foreign capital directly as a "sucker."

This scene also taught the market a lesson: never blindly worship foreign capital. In the A-share market, regardless of how prestigious foreign capital is, in the eyes of industry capital they are merely institutional investors with larger fund volumes. When it comes to the reduction window, major shareholders' reduction actions will show no mercy whatsoever.

Looking at the entire market ecosystem, industry capital is the top of the financial food chain, with information advantages and pricing power far superior to ordinary institutions and retail investors. Following the hype, only looking at shareholder lists without examining fundamentals and reduction risks, easily ends up being harvested. $ETH