China Shengmu Organic Milk Limited reported that its public float has fallen to 12.87%, far below the 25% minimum stipulated under Rule 13.32B of the Hong Kong Listing Rules and beneath the alternative HK$500.00 million market-value threshold. The Hong Kong Stock Exchange has therefore classified the shortfall as “Significant” under Rule 13.32F, triggering a potential delisting if compliance is not re-established by 2 February 2028.

Immediately after the close of a recent offer by major shareholder China Modern Dairy Holdings Ltd. (CMD), CMD and its concert parties held 7.00 billion shares, or 83.52% of China Shengmu’s 8.38 billion issued shares. Executive Director Zhang Jiawang owned 171.43 million shares (2.05%), while only 1.08 billion shares (12.87%) remained in public hands.

CMD has given an undertaking to the Stock Exchange to implement measures “at the earliest possible moment” to lift the public float back to compliant levels. Details of the restoration plan will be announced separately.

Until compliance is achieved, China Shengmu will continue to disclose its float position and refrain from any actions that could further reduce public shareholdings, barring exceptional circumstances.