Important Considerations for Shareholders

• Privatisation Activity: The report is made in relation to the ongoing privatisation of ENN Natural Gas Co., Ltd. by way of a scheme of arrangement. This is a significant corporate action that can impact share price volatility and liquidity.
• Morgan Stanley’s Involvement: As a connected Class (5) associate, Morgan Stanley Capital Services LLC’s dealings are pertinent under the Hong Kong Code on Takeovers and Mergers. Their activity in derivatives, even if for client facilitation, signals institutional interest and monitoring.
• Price Sensitivity: Although the net position after these trades is zero, the size and nature of the dealings (derivatives at significant notional value) could be interpreted as indicative of anticipated volatility or hedging ahead of the privatisation process. Investors should be alert to further disclosures or large trades, as they might reflect changes in sentiment or underlying demand.
• Dealings in RMB: All trades were settled in RMB, reinforcing the focus on A shares, which are typically traded by domestic and qualified foreign investors.

Detailed Transaction Breakdown

On 24 February 2026, Morgan Stanley Capital Services LLC executed two major derivative transactions involving the A shares of ENN Natural Gas Co., Ltd. Both trades were classified as “unsolicited client facilitation”—one being a purchase and the other a sale. Each transaction involved 11,100 reference securities with a maturity date of 31 August 2027, at a reference price of RMB 19.5647. The total value for each leg of the transaction was RMB 217,168.0035. After completion, Morgan Stanley held no open positions from these particular trades.

Given that these dealings were for Morgan Stanley’s own account, and in the context of a scheme of arrangement for privatisation, they are required disclosures under the Hong Kong Code on Takeovers and Mergers. Such transparency ensures that all market participants are equally informed regarding significant institutional activity that could impact the ongoing privatisation process and, consequently, the share price.

Potential Impact on Share Price

• The disclosed transactions, while resulting in no net position, highlight active involvement by a major financial institution during a sensitive period of corporate restructuring.
• The privatisation process itself, together with ongoing institutional trading activity, is inherently price sensitive and should be closely watched by shareholders and potential investors.
• Any further significant trades, changes in net positions, or new disclosures by related parties could serve as catalysts for share price movement.

Disclaimer: This article is for informational purposes only and should not be construed as investment advice. Investors are encouraged to conduct their own due diligence and consult professional advisors before making investment decisions. The information contained herein is based on public disclosures and may be subject to change without notice.

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