Significant Securities Dealings Disclosed in China Shengmu Organic Milk Limited

Key Points for Investors

• Date of Disclosure: 4 March 2026
• Relevant Parties: CITIC Securities Company Limited, identified as a Class (5) associate and connected with the Offeror.
• Nature of Dealings: Proprietary trades in “Delta 1 products” linked to China Shengmu Organic Milk Limited, arising from unsolicited client-driven dealings.
• Type & Volume of Trades: Both purchase and sale of 333,000 shares occurred on 3 March 2026.
• Trade Prices: Both the highest and lowest price per share was \$0.3401. The total amount involved in each direction (buy/sell) was \$113,253.30.
• Mandatory General Offer Context: The disclosure is made in relation to a possible mandatory general offer for China Shengmu Organic Milk Limited.

Details and Potential Impact for Shareholders

CITIC Securities Company Limited, acting for its own account and as a connected associate to the Offeror, disclosed significant proprietary trades in the shares of China Shengmu Organic Milk Limited. On 3 March 2026, CITIC Securities both sold and purchased 333,000 shares each, at a price of \$0.3401 per share. These trades were executed as part of the closing, flattening, or unwinding of proprietary positions that resulted from unsolicited client-driven dealings.

The firm has confirmed that all trades were completed no later than the close of the morning trading session on the trading day following the originating client-driven dealing. This transparency is crucial in the context of a possible mandatory general offer, which could have material implications for the company’s stock price and for shareholders’ positions.

Importantly, these dealings were for CITIC Securities’ own account, indicating no direct client instruction but rather internal risk management or proprietary positioning. The volume and identical buy/sell amounts suggest the transactions were likely to flatten exposure rather than directional trading, but the connection to a potential mandatory general offer may be of interest to shareholders.

Why This Matters to Investors

• Price-Sensitive Event: The disclosure is made under Rule 22 of the Hong Kong Code on Takeovers and Mergers, signaling that these transactions are potentially price-sensitive and relevant for ongoing or upcoming corporate actions.
• Mandatory General Offer: The context of a possible mandatory general offer could trigger significant shifts in shareholding structure, control, and valuation of China Shengmu Organic Milk Limited.
• Market Impact: Proprietary dealings by a connected party such as CITIC Securities, especially in the context of a takeover or merger scenario, tend to be closely watched by the market and can move share prices.
• Transparency and Governance: The timely public disclosure of these dealings enhances governance and provides all investors equal access to material information.

What Shareholders Should Do

• Monitor Developments: Shareholders should closely monitor further disclosures and announcements regarding the possible mandatory general offer.
• Review Positions: Investors may wish to reassess their positions in light of potential changes in control or strategic direction implied by an offer.
• Stay Informed: Maintain vigilance for further regulatory filings or market announcements related to China Shengmu Organic Milk Limited and connected parties.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice or a recommendation. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. The information herein is based on publicly disclosed documents as of the date indicated and may be subject to change without notice.

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