Source: Securities Times.
Author: Chen Xiachang.

After plummeting by 98%, $SANERGY GROUP (02459.HK)$announced that some shareholders' shares were forced to be sold and the stock resumed trading today.

Sinosteel Corporation Limited announced this morning on the Stock Exchange of Hong Kong that a total of 0.37 billion shares of Otautahi Capital Inc (approximately 36.64% of the company's total issued share capital on the date of this announcement) were sold in the open market by the securities company through a margin securities account on September 3. Following the completion of the forced sale and as of the date of this announcement, Otautahi Capital Inc held 0.2123 billion shares, accounting for 21.02% of the company's total issued share capital. The board of directors confirmed that the group's normal business operations are maintained, and there have been no significant changes in the group's business operations and financial status.

Public information shows that Sinosteel Corporation Limited is a manufacturer of ultra-high power graphite electrodes and graphite anode materials, providing guarantee for the low-carbon transformation of the steel industry and the nengyuanhangye industry. In January 2023, the group was listed on the main board of the Stock Exchange of Hong Kong.

After the company went public, the stock price gradually rose. After May this year, the stock price accelerated, rising from 3.76 Hong Kong dollars to a high of 21.15 Hong Kong dollars. It stood out in the sluggish Hong Kong market. However, the company's stock plummeted in a straight line after opening at 18.98 Hong Kong dollars per share on Tuesday morning, with the highest intraday decline reaching 99%. At 14:50, Sinosteel Corporation Limited suddenly suspended trading, with a 98.4% decline before the suspension, and a market cap of only 0.328 billion Hong Kong dollars.

Hong Kong Securities and Futures Commission pointed out that the equity of Sheng Neng Group is too concentrated

The company's stock price plummeted due to an announcement by the Hong Kong Securities and Futures Commission. On the evening of September 2, the announcement issued by the Hong Kong Securities and Futures Commission showed that as of August 19 this year, Sheng Neng Group had 25 shareholders holding a total of 0.279 billion shares, equivalent to 27.65% of the issued share capital; there were also 49.31 million shares (accounting for 4.88% of the issued share capital) that are not held in the Central Clearing and Settlement System, nor listed in the Hong Kong stock exchange of Sheng Neng Group.$TOUMEI (4439.JP)$Together with the shares held by the controlling shareholder, the total equity amounts to 0.5825 billion shares (57.67% of the issued share capital), equivalent to 90.2% of the issued shares.

Therefore, Sheng Neng Group only has 98.94 million shares (9.8% of the issued share capital) held by other shareholders.

The announcement by the Hong Kong Securities and Futures Commission also showed that from May 2 to August 19, the closing price of Sheng Neng Group's stock rose 463% from HKD 3.76 to HKD 21.15. After the market closed on August 13, the company issued a profit warning, expecting a net loss attributable to the owners of the company of not more than USD 16.5 million for the first half of this year, while the net loss for the same period last year was about USD 4.2 million.

The Securities and Futures Commission of Hong Kong stated that due to the high concentration of ownership among a small number of shareholders, even a small amount of shares traded may result in significant fluctuations in the stock price of the company. Shareholders and potential investors are advised to exercise caution when buying or selling shares in the company.

Risen Energy Group: Partial shares held by shareholders have been forcibly liquidated.

On September 4th, Risen Energy Group announced on the Hong Kong Stock Exchange that the company was notified by Otautahi Capital Inc that a total of 0.37 billion shares (approximately 36.64% of the company's total issued share capital) were forcibly sold by the securities company in the open market through a margin securities account on September 3rd. After the completion of the forced sale and as of the date of this announcement, Otautahi Capital Inc holds 0.2123 billion shares, accounting for 21.02% of the company's total issued share capital. The company's stock will resume trading today. Risen Energy Group fell 98.4% yesterday.

On the morning of September 3rd, Risen Energy Group issued an announcement in response, confirming that the company's shareholding situation is as disclosed in the announcement of the Securities and Futures Commission of Hong Kong. Regarding the absence of a central clearing system and the situation not being reflected in Risen Energy Group's shareholder register in Hong Kong, Risen Energy Group stated that their understanding refers to the shares held in the stock transfer registry of the Cayman Islands.

As of August 19th, the five shareholders in the share transfer registry of the Cayman Islands hold approximately 42.61 million shares, accounting for 4.22% of the issued share capital. Therefore, along with the controlling shareholders and 25 other shareholders, the total proportion of shares held is 89.53%.

Risen Energy Group also stated that according to available information and reasonable inquiries made regarding directors, the directors confirmed that as of August 19th, 2024 and the date of this announcement, at least 25% of the issued shares are held by the public, and the company has maintained a sufficient level of public shareholding as required by the Listing Rules of the Stock Exchange. In addition, due to the high concentration of ownership, the company's securities may not have a real market, or its equity may be concentrated in the hands of a few shareholders.

In addition to high ownership concentration, the company's performance is also not ideal. The midterm performance report for 2024 shows that Risen Energy Group's revenue for the first half of the year was $32.1 million, a decrease of 26.5% compared to the same period last year. The company's attributable loss to owners is approximately $14.4 million, compared to a loss of approximately $4.2 million in the same period last year. In the first half of the year, the average selling price of its graphite electrodes decreased by approximately 27.1% compared to the same period last year.

The Securities and Futures Commission of Hong Kong continues to caution about the risk of high ownership concentration.

The Securities and Futures Commission of Hong Kong disclosed in August that two listed companies have a high concentration of share ownership, but their stock prices did not experience such drastic fluctuations as in the case of Ascendas Group.

On August 4th,$MIGAO GROUP (09879.HK)$In a statement, Migo Group announced that the Securities and Futures Commission of Hong Kong has conducted an investigation into the distribution of the company's share ownership. The results showed that the concentration of share ownership in the company reached 99.04%. This means that only 0.96% of the shares are held by other shareholders.

The other company mentioned by the Securities and Futures Commission of Hong Kong was$LC LOGISTICS (02490.HK)$. The investigation conducted by the Securities and Futures Commission of Hong Kong revealed that as of June 21st, 18 shareholders collectively held 0.126 billion shares of the company, which is equivalent to 44.11% of the issued share capital. These shareholders, along with the three controlling shareholders of the company, held 0.159 billion shares (accounting for 55.39% of the issued shares), which is equivalent to 99.5% of the company's issued share capital. Therefore, only 1.44 million shares of the company are held by retail investors in the secondary market.

However, after being named by the Securities and Futures Commission, the stock prices of the two companies were not significantly affected and have only experienced small fluctuations until now.

Editor/rice