The former "chip magnate" Yu Rong, who had been relatively quiet for over half a year, has recently reinitiated pledge and release operations on part of his equity holdings in Omnivision Holdings.

According to a notice issued by Omnivision Holdings on July 16, after the latest pledge and release changes, Yu Rong and his consistent actors have cumulatively pledged 205 million shares of the company’s stock, representing 54.27% of their total holdings and 16.34% of the company’s total share capital.

Based on Omnivision Holdings’ closing price on July 16, the pledged shares held by Yu Rong and his consistent actors are valued at over 22.5 billion yuan.

The announcement indicates that the equity pledges primarily serve to refinance existing pledged financing. Yu Rong and his consistent actors have a total of 157 million shares subject to maturity within the next year (including those maturing within the next six months), corresponding to a financing balance of nearly 7.2 billion yuan.

Meanwhile, Omnivision Holdings has faced short-term performance pressure: the company recorded revenue of 6.414 billion yuan in Q1, down 0.9% year-on-year; net profit attributable to shareholders reached 503 million yuan, down 41.92% year-on-year.

As of the close on July 16, Omnivision Holdings traded at 109.85 yuan per share, with its stock price having declined by more than 50% from its historical peak, and the latest market cap stands at approximately 138.1 billion yuan.

In the “2026 New Fortune 500 Richest List” released in June, Yu Rong ranked among the top 500 with a personal wealth of 49.28 billion yuan, an increase of 8.24 billion yuan compared to last year.

"Borrowing from the East Wall to Patch the West Wall": Yu Rong Repeats Equity Pledging

After the market close on July 14, Omnivision Holdings announced that it had learned the controlling shareholder, Yu Rong, had pledged 22 million shares (7.25% of his personal stake, 1.75% of the total share capital) to Yunnan International Trust Co., Ltd.

Based on the closing price of 106.15 yuan per share on the announcement date, the pledged shares were valued at approximately 2.335 billion yuan.

Omnivision Holdings stated that this pledge is primarily intended to refinance existing pledged financing. Yu Rong will promptly fulfill his notification obligations based on subsequent pledge developments, and the company will timely fulfill its disclosure obligations in accordance with relevant laws, regulations, and disclosure requirements as future pledge situations arise.

After the market close on July 16, Omnivision Holdings issued another announcement titled "Announcement on Partial Equity Pledge and Release by Controlling Shareholder," stating that it had received notice from Yu Rong regarding the registration procedures for partial pledge and release of shares he holds in the company.

The announcement revealed that, as of the disclosure date, Yu Rong personally holds 303 million shares, accounting for 24.13% of the company's current total share capital.

Yu Rong and his consistent actors—Shaoxing Weihao Equity Investment Fund Partnership (Limited Partnership) ("Shaoxing Weihao") and Yu Xiaorong—collectively hold 379 million shares, representing 30.1% of the company’s total share capital.

After the recent pledge and release adjustments, Yu Rong has cumulatively pledged 190 million shares, or 62.47% of his holdings.

Yu Rong and his consistent actors have now cumulatively pledged 205 million shares, amounting to 54.27% of their total shareholding in the company and 16.34% of the total share capital.

The announcement also noted that the controlling shareholder and his consistent actors will have 115 million shares subject to maturity within the next six months, representing 30.35% of their holdings and 9.14% of the total share capital, with a corresponding financing balance of 5.595 billion yuan.

Additionally, the controlling shareholder and his consistent actors will have 42.5 million shares mature within the next year (excluding those maturing within the next six months), accounting for 11.23% of their holdings and 3.38% of the total share capital, with a corresponding financing balance of 1.595 billion yuan.

Omnivision Holdings affirmed that the controlling shareholder and his consistent actors possess adequate repayment capacity, with funding sources including operating income, dividends from listed company stocks, investment returns, and self-raised funds.

The company further stated that the controlling shareholder’s financial condition and creditworthiness remain sound, and the pledge risk remains within manageable limits.

The company emphasized that this pledge does not pose a risk of margin call or forced liquidation, nor does it involve any substantial factors that could alter the actual control of the company. Should risks emerge, the controlling shareholder will take measures including but not limited to additional pledges and early repayment.

Frequent Pledging Operations Prompt Regulatory Inquiries

According to Tianyancha, Omnivision Integrated Circuit (Group) Co., Ltd. was established in May 2007, originally known as Shanghai Wel Semiconductor Co., Ltd.

In 2017, Wel Semiconductor successfully listed on China’s A-share market. Two years later, Wel Semiconductor acquired Omnivision Technologies in a “snake swallowing elephant” acquisition, becoming the world’s third-largest and China’s largest CMOS optical sensor chip design firm. The company officially rebranded as Omnivision Holdings last year.

From the official website, Omnivision Holdings, a top-tier Fabless semiconductor design company globally, currently focuses on providing sensor solutions, analog solutions, and display solutions.

Since going public, Yu Rong has repeatedly engaged in the cycle of “equity pledging – release – re-pledging.”

Tianyancha data shows that since 2017, Omnivision Holdings has recorded 139 shareholder pledge entries. According to Tonghuashun iFinD, the company issued 20 announcements related to equity pledges or releases in 2025 alone.

Entering 2026, news about equity pledges at Omnivision Holdings remained dormant for over half a year. However, in July this year, the company issued two consecutive announcements regarding the controlling shareholder’s equity pledges or releases.

In fact, Yu Rong is not only the leader of the listed company but also frequently engages in private investments under his personal name.

A 21st Century Business Review article published in 2024 noted that Yu Rong personally invested in at least 10 private equity funds focused on the semiconductor sector.

In 2020, Yu Rong invested nearly 10 million yuan in Zhongke Feice. Three years later, Zhongke Feice successfully went public, yielding several-fold paper gains for Yu Rong.

Last June, Xinhenghui was listed on the ChiNext Board of Shenzhen Stock Exchange. Through this IPO, Yu Rong secured his second A-share listing. The successful listing of Xinhenghui further expanded Yu Rong’s capital portfolio.

According to Xinhenghui’s 2025 Annual Report, Yu Rong and Ren Zhijun are the company’s controlling shareholders and joint actual controllers. Specifically, Yu Rong directly holds 23.56% of the company’s shares, making him the largest shareholder, and serves as a director.

Notably, in June last year, Omnivision Holdings submitted an application for listing to the Hong Kong Stock Exchange, aiming for a main board listing.

Two months later, the company received regulatory feedback, with the China Securities Regulatory Commission (CSRC) requesting clarification on discrepancies in the identification of controlling shareholders and the criteria used, as well as detailed information on the pledge status of shares held by the controlling shareholder, the actual controller, and shareholders under their control.

In December of the same year, the CSRC International Cooperation Department issued the "Notice on Overseas Listing Filing for Omnivision Integrated Circuit (Group) Co., Ltd.," confirming the company’s overseas listing filing matters.

Company Performance Under Short-Term Pressure, Yu Rong Donated 3.6 Billion Yuan Worth of Shares at Year-End Last Year

In terms of performance, in 2025, Omnivision Holdings achieved double-digit growth in both revenue and net profit: the company recorded annual revenue of 28.855 billion yuan, up 12.14% year-on-year; net profit attributable to shareholders reached 4.045 billion yuan, up 21.73% year-on-year.

However, in the first quarter of this year, the company’s performance showed clear pressure: quarterly revenue dropped 0.9% to 6.414 billion yuan, while net profit attributable to shareholders fell sharply by 41.92% to 503 million yuan.

Omnivision Holdings explained that during the first quarter, global semiconductor industry dynamics experienced temporary disruptions due to sustained AI infrastructure construction, particularly affecting supply-demand relationships for memory chips. Meanwhile, demand pressures in end markets such as consumer electronics and automotive electronics impacted the company’s revenue scale.

As a result, revenue from low-margin semiconductor distribution business rose to 22.48%, contributing to a 1.65 percentage point decline in the company’s overall gross margin compared to the same period last year.

On the cost side, first-quarter expenses increased by 122 million yuan, primarily driven by higher research and development (R&D) and financial expenses.

R&D expenses rose by 64 million yuan, mainly due to increased investment in new product lines. Financial expenses increased by 39 million yuan, primarily caused by exchange losses resulting from currency fluctuations.

During the same period, the company incurred non-recurring losses of approximately 113 million yuan, mainly due to temporary fair value changes in its equity investments in listed companies affected by stock price volatility.

Additionally, the company’s net cash flow from operating activities decreased by 361 million yuan year-on-year, primarily due to a slight increase in cash paid for goods purchased and services received.

Looking ahead to the second quarter, Omnivision Holdings forecasts quarterly revenue between 7.15 billion and 7.54 billion yuan, representing a year-on-year change range of -4.46% to 0.75%, a 11.47% to 17.55% increase compared to the previous quarter. Gross margin is expected to fall within the 28.7% to 29.6% range.

Despite short-term performance pressure, since its entry into the capital market in 2017, Omnivision Holdings has maintained profitability consistently.

Data from Tonghuashun iFinD shows that from 2017 to 2025, Omnivision Holdings conducted 11 cash dividend distributions, totaling 2.267 billion yuan in cumulative cash dividends. Through its shareholdings, Yu Rong has thus accumulated substantial returns.

Beyond dividends, Yu Rong has previously sold portions of his shares multiple times. In June 2021, the company announced that Yu Rong completed the sale of 6 million shares at the beginning of the year, raising approximately 392 million yuan.

In January of the following year, the company announced that Yu Rong had completed the sale of 7.9 million shares between September 23 and December 31, 2021, generating proceeds of around 1.815 billion yuan.

At the end of last September, the company disclosed a new share reduction plan: to repay loans and lower pledge ratios, Yu Rong planned to reduce his stake via block trades by no more than 24 million shares, representing no more than 1.99% of the total shares outstanding.

If calculated at the closing price on the announcement date, the maximum reduction could yield approximately 3.6 billion yuan. However, in December of the same year, Omnivision Holdings announced that Yu Rong did not carry out any share sales and decided to terminate the reduction plan prematurely.

Notably, due to a significant charitable donation, Yu Rong was named “China’s Top Philanthropist” in the 2024 Hurun Philanthropy List.

A Tsinghua University graduate from Zhenhai, Ningbo, Yu Rong launched a school-endowment initiative in 2020, committing to build a high-standard, new-style research university focused on science and engineering—the Ningbo Dongfang University of Science and Technology.

Subsequently, Yu Rong and his consistent actors have made multiple donations of Omnivision Holdings shares to the university, most recently in December last year.

At that time, Yu Rong planned to donate 30 million unrestricted tradable shares held by him to the Ningbo Dongfang University of Science and Technology Education Foundation. Based on the closing price of 121.08 yuan per share on the announcement day, the donated shares were valued at 3.632 billion yuan.

Radar Finance will continue monitoring the subsequent development of Omnivision Holdings.

This article comes from the WeChat official account “RadarFinance,” authored by Ding Yu, edited by Meng Shuai.

Source: Radar Finance