Shengneng Group’s Share Price Plummets 99% Amid Forced Sale of 370 Million Shares

Shengneng Group’s shares experienced a significant decline of 99% yesterday, resulting in a trading suspension. The company has announced that 370 million shares, approximately 36.6% of the total issued share capital, were forcibly sold by securities companies in the open market through margin securities accounts on September 3.

• A total of 370 million shares of Shengneng Group’s controlling shareholders were forced to be sold.
• After completion, Otautahi Capital Inc will hold 210 million shares, accounting for 21% of the issued share capital.
• The China Securities Regulatory Commission pointed out the high concentration of shareholdings, contributing to the stock price decline.

Shengneng Group (02459) shares will resume trading after the forced sale. The company has assured that normal business operations will continue, with no major changes in business operations and financial conditions.

The Board of Directors confirmed that the Group maintains normal business operations and that there have been no major changes in business operations and financial conditions.

The China Securities Regulatory Commission has highlighted the high concentration of shareholdings in Shengneng Group, with only 98.942 million shares or 9.8% of the issued shares held by other shareholders. The company’s share price had risen 463% between May 2 and August 19, from 3.76 yuan to 21.15 yuan.

Shengneng Group’s share price hit a low of 0.14 yuan, becoming a milli-share, before trading was suspended at 2:50 pm. The transaction volume was 490 million yuan, and the market value fell to 330 million yuan.