According to a report from Economic News Agency on the 11th, Lao Heng He Brewing (02226) announced that the public shareholding ratio is approximately 23.27%, which is below the required minimum percentage. To restore the public shareholding ratio, it is exploring the possibility of core connected persons selling a certain proportion of existing shares, with the expectation of restoring the public shareholding ratio by July 23 or earlier.

The group stated that it is exploring the possibility of proposed sales by core connected persons excluding WuXing Hong Kong and will communicate with core connected persons from time to time. WuXing Hong Kong is ultimately wholly owned by the State-owned Capital Supervision and Administration Service Center of WuXing District, Huzhou City. Therefore, it is expected that the proposed sales by state-owned enterprises will require formal approval from the relevant departments. In addition, several directors of the group, such as Huang Dachun and Li Qinghua, also serve as directors and/or senior management of the controlling shareholder Huzhou WuXing State-owned Investment Operation Development Group. Therefore, WuXing Hong Kong will only be able to begin preliminary discussions and negotiations with potential investors after the expected end of the group's trading prohibition period at the end of March. WuXing Hong Kong will seek potential investors to complete the proposed sales and obtain the relevant approvals. (wh)