(Yicai) July 3 -- Shares of Bosideng International Holdings tanked in Hong Kong after an investment vehicle of the chairman agreed to sell HKD1.7 billion (USD217.6 million) of equity in the leading Chinese maker of down jackets.

Bosideng [HKG: 3998] closed 15.9 percent lower at HKD4.01 (US 50 cents) a share after plunging by as much as 18.2 percent intraday. The shares are still more than 17 percent higher than they were at the end of last year amid improving profitability.

New Surplus International Investment, owned by Gao Dekang, founder and chairman of Bosideng, inked an agreement with JP Morgan Securities Asia Pacific to sell four million shares, or 3.6 percent of the retailer's total, for HKD4.31 apiece, the Jiangsu province-based company said today.

Gao and his family, through several holding companies such as New Surplus, collectively own about 68 percent of Bosideng. He will still be Bosideng’s controlling shareholder after the stock sale.

The sale is aimed at optimizing the company's equity structure and attracting more high-quality domestic and international investors. The proceeds will be used to meet Bosideng's financial needs, including charitable causes, it said.

In the fiscal year ended March 31, Bosideng’s net profit jumped 44 percent to a record CNY3.1 billion (USD420 million) due to strong sales, according to its financial report released on June 26. Revenue climbed 38 percent to CNY23.2 billion (USD3.2 billion), also a record high.

After the results were reported, brokerages, including Guotai Junan and Shenwan Hongyuan, published positive forecasts for the garment maker, which helped to lift the stock price.

Editors: Dou Shicong, Emmi Laine