Shares of MAJESTIC DRAGON (HKEX: 00918) have climbed more than 5%. At the time of writing, the stock is up 5.99% to HK$1.77, with a turnover of HK$11.16 million.

The move follows a company announcement dated July 16. The board was notified by Always Profit Development Limited, a company wholly owned by Mr. Zhang Jinbing, that it had entered into a share sale agreement before the trading session on July 16, 2026.

Pursuant to the agreement, the seller agreed to dispose of 300 million ordinary shares in the company to SBI CHINA FUND LP. These shares represent approximately 26.93% of the company's total issued share capital as of the announcement date, with a sale price of HK$1 per share.

The announcement stated that, immediately prior to the completion of the disposal, the seller held 527 million shares in the company, representing approximately 48.43% of the total issued share capital and constituting the company's controlling shareholder as defined under the listing rules.

Assuming no change in the number of issued shares before the disposal's completion, the seller's shareholding will be reduced to 227 million shares following the transaction, representing approximately 20.40% of the company's total issued share capital.