Eminence Capital Group Limited (EMINENCE CAP GP, 00770) reported that it bought a total of 26.20 million shares of Canopy SkyFire Group Limited—equivalent to 9.05 % of Canopy’s issued capital—across three on-market trades executed on 10 July, 6 August and 2 December 2025. Aggregate consideration was HK$4.82 million (approximately US$0.62 million), excluding transaction costs.

The first tranche (10.60 million shares at HK$0.23 apiece) alone equalled 28.6 % of Eminence’s 30 June 2025 net asset value (NAV) of HK$8.14 million, breaching the 20 % investment cap set by Listing Rule 21.04(3)(b). When combined with subsequent purchases (10.60 million shares at HK$0.192 and 5.00 million shares at HK$0.13), the total investment represented 29.3 % of NAV as at 30 November 2025. Under Chapter 14 size tests, the aggregated transaction qualifies as a major transaction, triggering shareholder approval and circular requirements.

Management attributed the breach to an “inadvertent oversight” during deal planning and has outlined corrective steps: 1) halting further purchases and planning disposals of Canopy shares to restore compliance by 31 December 2026; 2) seeking retrospective shareholder approval at an extraordinary general meeting to be convened by 31 October 2026; 3) commissioning an independent internal-control review; 4) tightening pre-trade compliance checks and size-test calculations; and 5) delivering targeted Listing Rules training to directors and finance staff.

Supplemental information on capital management shows full deployment of US$0.40 million net proceeds from the July 2025 placing: US$70,552 into unlisted Law’s Business Group Holding Ltd and US$333,448 across four Hong Kong-listed equities, including HK$239,704 (US$31 000) into Canopy.

At 31 December 2025, Eminence’s investment portfolio totalled US$0.44 million, with Canopy shares accounting for 24.99 % of gross assets. Lenovo Group Limited was the only investee generating dividends during the year, providing a dividend-cover ratio of 3.58 times based on its latest earnings.

Shareholders will receive a detailed circular on or before 13 October 2026. The company advises investors to exercise caution when dealing in its shares until compliance matters are fully resolved.