HUAJIN INTL (02738) has announced that its controlling shareholder plans to reduce his stake through the sale of 174 million existing shares, representing approximately 29.00% of the company's total issued share capital as of the date of this announcement.

The company's board was informed by Mr. Xu Songqing, the executive director, board chairman, and controlling shareholder, that on September 14, 2026, Haiyi Limited, a company indirectly wholly owned by Mr. Xu, conducted an off-market placement through a placing agent. The shares were sold to multiple placees at an average price of approximately HK$0.038 per share.

Following reasonable inquiries made by Mr. Xu, each placee and its ultimate beneficial owner are independent third parties and are not connected with the company or its connected persons, as defined under the Listing Rules. After conducting all reasonable inquiries, the company is not aware of the identities of the placees or their respective principal business activities.

The board expects that this disposal will not have a material impact on the group's business operations, financial position, or management structure, nor will it affect the company's normal business development and day-to-day operations.

Upon completion of the disposal, Haiyi's shareholding in the company will decrease from 391.5 million shares, representing approximately 65.25% of the total issued shares, to 217.5 million shares, representing approximately 36.25%. Haiyi will remain the controlling shareholder of the company.

As of the date of this announcement, all issued shares of Haiyi are legally and beneficially owned by Intrend Ventures Limited, which in turn is legally and beneficially owned by Mr. Xu. For the purposes of the Securities and Futures Ordinance, both Mr. Xu and Intrend Ventures Limited are deemed to be interested in all shares of the company held by Haiyi.