Six shareholders of AUNTEA JENNY (stock code: 02589) have announced they will extend their lock-up period through August 7, 2026, but simultaneously set a cap on potential share sales, triggering a sharp market sell-off. The market interpreted this move as the start of a planned reduction, leading to immediate selling pressure.

In a recent announcement, the company detailed that six investors—including Suzhou Yizhong Venture Capital, Suzhou Xiangzhong Venture Capital, and others—have voluntarily pledged not to reduce their holdings from the original lock-up expiry until August 7, 2026. However, they have also set a specific limit on the maximum number of shares they can sell during the subsequent period from August 7, 2026, to November 7, 2026. The total allowable reduction during this window is capped at 3,684,228 shares, representing approximately 3.50% of the company's total issued shares.

Meanwhile, five other major shareholders, including Shanghai Puhai Enterprise Management Co., Ltd., have reaffirmed their commitment not to sell any shares from the original lock-up expiry through November 7, 2026, maintaining their existing non-disposal pledges.

AUNTEA JENNY stated that the extended lock-up period demonstrates the shareholders' confidence in the company's future prospects and long-term value. The company noted that these shareholders will continue to monitor operating performance and will consider both business development and overall capital market conditions when deciding on any future share sales. Despite the extension, the market viewed the newly set upper limit for share sales as a strong signal of an impending sell-off, which sharply impacted investor sentiment.

Following the news, AUNTEA JENNY shares fell more than 23.4% today, closing at HK$89.85 per share. This drop brought the company's total market capitalization down to HK$9.45 billion, falling below the HK$10 billion mark.

In terms of financial performance, AUNTEA JENNY reported first-half 2026 revenue of RMB 2.589 billion, a 42.4% increase from RMB 1.818 billion in the same period last year. The company declared and paid a mid-term dividend of RMB 71.11 million in December 2025, which was fully paid out by February 4, 2026. It also announced a final dividend of RMB 1.052 billion for the year ended December 31, 2025, which was approved at the annual general meeting and is scheduled for payment on August 5, 2026. Additionally, the board declared another mid-term dividend of RMB 210 million on July 31, 2026, to be paid on September 29, 2026.

As of June 30, 2026, AUNTEA JENNY operated a total of 13,155 stores. This includes 949 stores in first-tier cities, 2,447 in new first-tier cities, 2,676 in second-tier cities, and 7,022 in third-tier and lower cities. The company also has 61 stores overseas.

For the first half of 2026, the company's gross profit reached RMB 818 million, up 43.2% from RMB 572 million in the year-ago period. Administrative expenses were RMB 95.11 million, R&D spending totaled RMB 33.63 million, and finance costs were RMB 2.7 million. Net profit for the period was RMB 321 million, a 58.3% increase from RMB 200 million in the prior year. Non-IFRS net profit stood at RMB 345 million, up 41.6% from RMB 244 million in the same period last year.