Hualu Biotechnology (300970) Specific Shareholder Suqian Huaxin Proposes to Reduce Holdings of No More Than 1.872 Million Shares, Accounting for 1.56% of Total Share Capital

Jiangsu Hualu Biological Technology Group Co., Ltd. (hereinafter referred to as “Hualu Biology” or “the Company”) announced on March 17, 2026, that its specific shareholder, Suqian Huaxin Investment Management Center (Limited Partnership) (hereinafter referred to as “Suqian Huaxin”), plans to reduce its holdings of the Company’s shares through centralized bidding within the next three months. The reduction will not exceed 1,872,000 shares, accounting for 1.56% of the total share capital after excluding the repurchased shares.

Shareholder Basic Information

According to the announcement, Suqian Huaxin currently holds 1,872,000 shares of Hualu Biology before its initial public offering. As of the announcement date, the total share capital of the Company is 122,609,100 shares, minus 2,346,600 shares repurchased, leaving a remaining total of 120,262,500 shares. Suqian Huaxin’s shareholding ratio is 1.56%.

Core Content of the Reduction Plan

Scale and Method of Reduction

Suqian Huaxin intends to reduce no more than 1,872,000 shares, which represents all of its holdings. The reduction will be conducted through centralized bidding transactions. Within any consecutive 90 calendar days, the total shares reduced via centralized bidding will not exceed 1% of the total share capital after excluding the repurchased shares.

Period and Price of Reduction

The reduction period is from 15 trading days after this announcement until three months later, i.e., from April 9, 2026, to July 8, 2026. The reduction price will be determined based on the market price at that time.

Reason for Reduction

The announcement clearly states that Suqian Huaxin’s reduction is due to “the shareholder’s own capital needs.”

Shareholder Commitment and Performance

According to the prospectus and listing announcement at the time of Hualu Biology’s initial public offering, Suqian Huaxin made several commitments:

• Lock-up Period Commitment: From the date of the company’s listing, no transfer or entrusted management of the pre-IPO shares held by the shareholder within 36 months, nor repurchase of these shares by the company;
• Reduction Restrictions: After the lock-up period, no more than 50% of the shares held can be reduced in the first year, with full reduction permitted in the second year;
• Price Floor: The reduction price shall not be lower than the IPO price (adjusted accordingly if there are rights issues or dividends during the period).

As of the announcement date, Suqian Huaxin has strictly fulfilled these commitments without any violations. The current reduction plan is consistent with previously disclosed intentions and commitments.

Risk Warning and Impact Analysis

The announcement indicates that Suqian Huaxin will decide whether to implement the reduction plan based on market conditions, the company’s stock price, and other factors. Therefore, the timing, quantity, and price of the reduction are uncertain. However, Suqian Huaxin is not a controlling shareholder, actual controller, or a person acting in concert with them, so this reduction will not lead to a change in the company’s control or significantly impact corporate governance and ongoing operations.

Additionally, the company emphasizes that this reduction plan does not violate the “Interim Measures for the Management of Shareholder Reductions in Listed Companies,” “Guidelines for Self-Regulation of Listed Companies on the Shenzhen Stock Exchange No. 18—Shareholders, Directors, and Senior Management Shareholding Reductions,” or other relevant regulations. The company also states that there are no issues such as share price falling below issuance price, net asset value, or dividend distribution problems that would restrict controlling shareholders from reducing their holdings.

The company will disclose the progress of the reduction plan in a timely manner according to relevant regulations. Investors are advised to make cautious decisions and be aware of investment risks.

Disclaimer: The market involves risks; investments should be cautious. This article is automatically published by an AI model based on third-party databases and does not represent Sina Finance’s views. All information herein is for reference only and does not constitute personal investment advice. Please refer to the actual announcement for details. For questions, contact biz@staff.sina.com.cn.

Click here to view the original announcement>>