Disclosure of Dealings in China Shengmu Organic Milk Limited Shares – Possible Mandatory General Offer

Key Points for Investors

• Date of Disclosure: 4 March 2026
• Subject: Possible mandatory general offer related to China Shengmu Organic Milk Limited
• Disclosing Party: CITIC Securities International Capital Management Limited (CSICML)
• Nature of Dealings: Proprietary positions closed/flattened/unwound due to unsolicited client-driven dealings
• Volume: 333,000 shares bought, 333,000 shares sold
• Transaction Amount: Total purchase and sale amount for each leg was \$113,253.30
• Price Range: Purchases at \$0.3401 per share; Sales between \$0.3400 and \$0.3450 per share
• Ownership Structure: CSICML is a Class (5) associate connected with the Offeror and is ultimately owned by CITIC Securities Company Limited

Detailed Article

On 4 March 2026, the Executive received a public disclosure of securities dealings pursuant to Rule 22 of the Hong Kong Code on Takeovers and Mergers involving shares of China Shengmu Organic Milk Limited. The disclosure, made by CITIC Securities International Capital Management Limited (CSICML), revealed significant proprietary trading activity that may have implications for investors.

Dealings Summary

On 3 March 2026, CSICML engaged in a series of proprietary transactions involving 333,000 ordinary shares of China Shengmu Organic Milk. These transactions were prompted by unsolicited client-driven dealings, after which CSICML promptly closed, flattened, or unwound its proprietary positions. The company confirmed that these actions were completed no later than the close of the morning trading session on the trading day following the original client-driven dealing.

• Purchase: 333,000 shares at a total of \$113,253.30 (price per share: \$0.3401)
• Sale: 333,000 shares at a total of \$113,253.30 (price range: \$0.3400 – \$0.3450 per share)

Shareholder Implications & Price Sensitivity

The disclosure is significant because:

• It signals the possibility of a mandatory general offer for China Shengmu Organic Milk Limited, which could have a material impact on the company’s share price.
• Dealings were conducted by a party closely connected to the Offeror—CSICML is a Class (5) associate and is ultimately owned by CITIC Securities Company Limited.
• The proprietary trading—prompted by client-driven dealings—suggests heightened activity and interest around China Shengmu’s shares, which could foreshadow further corporate actions or offer-related developments.
• The volume and prices involved in these trades may provide insight into current market sentiment and valuation of the shares in the context of a potential general offer.

Ownership & Regulatory Context

• CSICML’s status as a Class (5) associate means it is directly connected with the party potentially making the offer, which increases the relevance and price sensitivity of the disclosed dealings.
• The transactions were for CSICML’s own account, not for third parties.

What Investors Should Watch

• Potential General Offer: The possibility of a mandatory general offer for China Shengmu Organic Milk Limited is a critical event. Investors should closely monitor further announcements as a general offer could result in significant share price revaluation.
• Trading Patterns: The disclosed trades and the rapid closing of positions suggest ongoing developments that may affect market activity and valuation.
• Regulatory Filings: Further disclosures under the Hong Kong Code on Takeovers and Mergers should be tracked for updates on the situation and any formal offer announcements.

Conclusion

The disclosure of dealings by a party associated with a potential offeror is a price-sensitive event. Investors are advised to stay alert for further developments regarding a possible mandatory general offer for China Shengmu Organic Milk Limited, as this could have a direct impact on share value and trading volatility.

Disclaimer: The above article is prepared for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence or consult professional advisers before making any investment decisions. The content is based on a public disclosure document and may be subject to further updates or clarifications by the relevant parties or regulatory authorities.

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