Key Points from the Announcement
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Approval Granted for H Share Full Circulation: Launch Tech Company Limited (“the Company”, stock code: 2488) has received official approval from the Hong Kong Stock Exchange (HKEX) for the listing and circulation of 194,241,600 H Shares, marking a significant step in the Company’s capital market strategy.
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Effective Date: The approval was granted by the HKEX on 11 March 2026, following the Company’s application and prior announcements regarding the H Share full circulation plan and the China Securities Regulatory Commission (CSRC) filing notice.
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Shareholding Structure Transformation: The conversion will involve nine participating shareholders whose unlisted domestic shares will be converted into H Shares, accounting for 55.37% of the total issued H Shares after the conversion. This is expected to significantly enhance the liquidity of the Company’s shares and broaden the investor base.
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Post-Conversion Share Structure: Following completion, the total number of H Shares will rise from 156,595,600 to 350,837,200, representing 85.54% of the Company’s total issued shares. The proportion of Domestic Unlisted Shares will decrease from 61.82% to only 14.46%.
Details of the Shareholding Structure After Conversion
The nine participating shareholders and their converted H Shares are as follows:
| Shareholder Name |
Number of Converted H Shares |
% of Total Issued H Shares (Post-Conversion) |
% of Total Company Shares (Post-Conversion) |
| Liu Xin |
79,200,000 |
22.57% |
19.31% |
| Shenzhen Yuan Zhong Cheng You Consultancy Limited Partnership |
35,160,000 |
10.02% |
8.57% |
| Ganzhou Rui Yuan Investment Partnership |
19,200,000 |
5.47% |
4.68% |
| China Special Situations Holdings (2) (BVI) Limited |
12,000,000 |
3.42% |
2.93% |
| Zhuhai Muyang Enterprise Management Partnership Enterprise |
12,000,000 |
3.42% |
2.93% |
| Shenzhen De Shi Yu Investment Co., Ltd. |
11,938,200 |
3.40% |
2.91% |
| China Special Situations Holdings (1) (BVI) Limited |
11,543,400 |
3.29% |
2.81% |
| Haining Rui Dong Qicai Investment Partnership Enterprise |
6,600,000 |
1.88% |
1.61% |
| Haining Rui Dong Hairun Investment Partnership Enterprise |
6,600,000 |
1.88% |
1.61% |
In total, these converted H Shares represent 55.37% of the issued H Shares and 47.36% of the total company shares post-conversion.
Share Capital Structure Before and After Conversion
| Class of Shares |
Before Conversion |
% of Total |
After Conversion |
% of Total |
| Domestic Unlisted Shares |
253,560,000 |
61.82% |
59,318,400 |
14.46% |
| H Shares |
156,595,600 |
38.18% |
350,837,200 |
85.54% |
| Total |
410,155,600 |
100.00% |
410,155,600 |
100.00% |
Potential Impact and Price-Sensitive Information
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Significant Increase in Free Float: The dramatic rise in H Shares (from 38.18% to 85.54%) will greatly increase the free float and liquidity of Launch Tech shares in the Hong Kong market. This could attract new institutional and international investors, potentially impacting the share price.
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Change in Shareholder Base: With nine major shareholders converting a large proportion of their holdings, there may be shifts in control dynamics and possible changes in future governance or corporate strategy.
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Possible Overhang Risk: The conversion of domestic shares to H Shares and their listing could lead to concerns about potential share sales by these large shareholders, which may exert downward pressure on the share price if not carefully managed or communicated.
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Regulatory Compliance and Announcements: The Company has stated it will provide further updates on the conversion and trading process, as required by law and the HKEX listing rules. Shareholders and investors should monitor these announcements closely for any material developments.
Board and Management Update
The Board of Launch Tech Company Limited is led by Chairman Liu Xin, with a mix of executive, employee, non-executive, and independent non-executive directors. This diverse board is expected to oversee the transition and ongoing compliance after the conversion.
What Should Shareholders Do?
Shareholders and potential investors are strongly advised to exercise caution in trading the Company’s securities amid these significant developments, as the increased liquidity and changes in shareholding structure could result in heightened volatility in the share price.
Disclaimer
This article is for informational purposes only and should not be construed as investment advice. Investors should conduct their own due diligence and consult with professional advisers before making any investment decisions. The information herein is based on public disclosures made by Launch Tech Company Limited and may be subject to change without notice.
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