Shuangdeng Group Co., Ltd. Receives Approval for H Share Full Circulation Listing

Key Developments and Implications for Shareholders

Shuangdeng Group Co., Ltd. (Stock Code: 06960) has announced a significant development that is likely to impact its share price and overall market presence. The company has received approval from The Stock Exchange of Hong Kong Limited for the listing and full circulation of its H shares. This move is expected to enhance the liquidity of the company’s shares and potentially increase investor interest and trading volumes.

Highlights of the Announcement

• Approval Granted: On 21 April 2026, the Stock Exchange granted approval for the listing and permission to deal in 191,773,300 H shares to be converted from unlisted shares currently held by several shareholders.
• Participating Shareholders: The conversion involves five major shareholders, who collectively hold approximately 45.06% of the total issued shares of the company. The breakdown is as follows:
  • Mr. Yang Shanji: 138,310,000 shares (32.50%)
  • Taizhou Heying Enterprise Management Center (Limited Partnership): 19,000,000 shares (4.46%)
  • Shuangdeng Investment Management (Shanghai) Co., Ltd.: 15,630,000 shares (3.67%)
  • Taizhou Hexin Enterprise Management Center (Limited Partnership): 13,600,000 shares (3.20%)
  • Xiamen Hengsheng Zizhu Equity Investment Partnership (Limited Partnership): 5,233,300 shares (1.23%)
• Impact on Share Capital Structure: Upon completion of the conversion and listing, the company’s share capital structure will change significantly:
  • Unlisted Shares: Will decrease from 274,773,300 (64.56%) to 83,000,000 (19.50%).
  • H Shares: Will increase from 150,836,200 (35.44%) to 342,609,500 (80.50%).
  • Total issued shares remain unchanged at 425,609,500.
• Next Steps: The company will proceed with the relevant conversion and trading procedures and will issue further announcements regarding the progress as required by the Listing Rules and applicable laws.

Potential Impact on Share Price and Market Activity

• Increased Liquidity: The conversion of a substantial portion of unlisted shares into H shares is expected to significantly increase the free float and liquidity of Shuangdeng Group’s shares in the Hong Kong market. This may attract more institutional and retail investors, potentially leading to higher trading volumes.
• Potential Price Volatility: The large volume of new H shares entering the market (representing 45.06% of the total issued shares) could lead to short-term price volatility as supply-demand dynamics adjust.
• Shareholder Dilution: While the total number of shares remains unchanged, the increased proportion of H shares may dilute the influence of existing H-shareholders and affect voting power.
• Regulatory Compliance: The company emphasizes that all procedures will be conducted in compliance with the Listing Rules and relevant laws, and further updates will be provided as necessary.
• Caution for Investors: The company specifically advises shareholders and potential investors to exercise caution when dealing in its H shares, given the potential for increased market activity and volatility.

Board Composition Update

As of this announcement, the Board of Shuangdeng Group Co., Ltd. comprises:

• Dr. Yang Rui (Chairman of the Board, Executive Director and Chief Executive Officer)
• Dr. Yang Baofeng and Ms. He Rong (Executive Directors)
• Mr. Qian Shan’gao (Non-executive Director)
• Dr. Yin Junming, Dr. Wang Jin, and Dr. Wang Xi (Independent Non-executive Directors)

Conclusion

The approval for full circulation and listing of nearly half of Shuangdeng Group’s total issued shares as H shares marks a major milestone for the company. This move is poised to reshape the company’s share capital structure, significantly improve liquidity, and potentially attract a broader investor base. However, it also brings potential for near-term volatility and changes in shareholder dynamics, making it a development of high importance and sensitivity for all current and prospective investors.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information is based on the latest company announcement and may be subject to change.

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