Disclosure of Dealings in China Shengmu Organic Milk Limited: Key Details for Investors

Date: 5 March 2026
Subject: Public Disclosure Form – Possible Mandatory General Offer

Key Highlights from the Report

• Mandatory General Offer Possibility: The disclosure was made as part of a possible mandatory general offer situation, which means there could be significant changes in the control or ownership structure of China Shengmu Organic Milk Limited.
• Relevant Party: CITIC Securities Company Limited, a Class (5) associate connected with the Offeror, has disclosed its dealings in the shares of China Shengmu Organic Milk Limited.
• Dealings Details:
  • On 4 March 2026, CITIC Securities engaged in both the sale and purchase of 833,000 shares each, using Delta 1 products. These transactions involved the closing, flattening, or unwinding of proprietary positions arising from unsolicited client-driven dealings.
  • The total value of each transaction (both purchase and sale) was \$283,220, with the highest and lowest price paid or received for these transactions being \$0.3400 per share.
  • The disclosure confirms that all positions were closed no later than the close of the morning trading session on the day following the originating client-driven dealing.

Price Sensitive Information & Impact on Shareholders

• Potential Share Price Impact: The disclosure of significant proprietary trades by an associate of the Offeror, particularly in the context of a possible mandatory general offer, is material information. Any potential takeover or change in control is typically price-sensitive and may influence market sentiment and share value.
• Volume and Price Consistency: Both the sale and purchase involved large, identical volumes at the same price, indicating market-making or hedging activity rather than directional trading. However, the involvement of proprietary positions in such volume may still attract market attention.
• Connection to Offeror: CITIC Securities, as a Class (5) associate of the Offeror, is acting for its own account. Their actions could be interpreted by the market as an indicator of potential upcoming changes related to the company’s control or ownership.

What Shareholders Should Know

• Keep Abreast of Further Announcements: Given the possibility of a mandatory general offer, shareholders should closely monitor further disclosures or official statements from both China Shengmu Organic Milk Limited and the Offeror for any updates on a possible takeover or acquisition.
• Market Volatility: News of this nature often leads to increased volatility and trading activity in the shares. Investors should be aware of the potential for rapid price movements as more information becomes available.
• Regulatory Oversight: All dealings disclosed have been made in compliance with the Hong Kong Code on Takeovers and Mergers, specifically Rule 22, which provides transparency to the market regarding significant share dealings by connected parties.

Conclusion

The disclosure of substantial proprietary trading by CITIC Securities, an associate of the Offeror, amid a possible mandatory general offer situation, is a significant development for China Shengmu Organic Milk Limited. Shareholders should remain vigilant for further news, as any confirmation or progress regarding a takeover offer could have a material impact on the share price and overall market sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. Market conditions may change rapidly, and past performance is not indicative of future results.

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