#USA #Hong Kong #Dunxin Financial #ADS Ratio Change

Major Change in ADS Ratio Announced by Dunxin Financial Holdings

Dunxin Financial Holdings Limited, known for its investment and operational management in real estate, has announced a pivotal decision regarding its American Depositary Shares (ADS) ratio. From December 4, 2024, the ADS ratio will change from each ADS representing 480 Class A ordinary shares to each ADS representing a substantial 60,000 Class A ordinary shares. This adjustment is anticipated to affect trading prices upon the market opening on the same day.

What This Means for ADS Holders

For existing holders of Dunxin's ADS, the upcoming ratio change translates into a consolidation effect, where one ADS will equate to 125 shares due to the new alignment. It's important to note that the Class A ordinary shares themselves will remain unchanged within this plan. On the designated effective date, registered ADS holders must surrender their ADS to the depositary bank for cancellation and exchange corresponding to the new ratio.

Following this modification, the ADS will continue to trade under the symbol "DXFFY" on the OTC Pink market. However, the issuance of fractional new ADS as a result of this ratio change is not anticipated. Instead, these fractional interests will be aggregated and sold by the depositary bank, with net proceeds distributed to the corresponding ADS holders post-expenses.

Anticipated Effects on Trading Prices

The change in ADS ratio is expected to cause a proportional increase in stock price, aligning with the new structured ratio. Nonetheless, Dunxin Financial Holdings cannot guarantee that the ADS price will retain proportionality immediately after the change. The effects of market dynamics and investor behavior could influence trading differently than expected.

Company Background

Dunxin Financial Holdings Limited is a licensed microfinance organization focusing on providing financial services to individuals and small to medium-sized enterprises in Hubei Province, China. Notably, the company has not issued loans since 2020, and its strategic movements reflect a reorientation possibly to stabilize and enhance shareholder value.

Forward-Looking Statements

This press release contains forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that could result in actual outcomes significantly differing from those envisioned. Factors affecting this include, but are not limited to, company objectives, market demand, technological changes, and overall economic conditions both regionally in China and internationally.

Investors are urged not to place undue reliance on these forward-looking declarations; comprehensive risk factors are referenced in all disclosures submitted to the SEC. For additional insights, stakeholders can visit www.sec.gov.

As Dunxin embarks on this strategic change, analysts and investors alike will be closely monitoring its implications on their investment landscape and the company's future performance in the market.