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Dunxin Financial Holdings Adjusts ADS Ratio

Dunxin Financial Holdings Limited, a company focused on operational management and investments, is making noteworthy modifications to its American Depositary Shares (ADS) ratio. This adjustment is slated to take effect on December 4, 2024, when the trading opens on the OTC Pink market (OTC). Currently, one ADS represents 480 Class A common shares, but after the adjustment, one ADS will represent 60,000 shares.

This change effectively represents a 1-for-125 reverse split for the ADS holders, while there will be no alteration to the Class A common shares. Those registered as ADS holders on the effective date will have the opportunity to exchange their ADS at the depositary bank.

It's important to note that no fractional new ADS will be issued due to this change. Instead, any fractional interests will be aggregated and sold by the depositary bank, with the net cash proceeds distributed to ADS holders following the deduction of fees, taxes, and costs. After the adjustment, the ADSs will continue trading under the symbol 'DXFFY'.

The company anticipates that the adjustment will have a proportional impact on the ADS trading price, yet it acknowledges that prices may not align with expectations or exceed past values proportionately.

About Dunxin Financial Holdings Limited

Dunxin Financial Holdings Limited is a licensed microfinance provider serving individuals and small to medium-sized enterprises in Hubei Province, China. Notably, the company has suspended its loan offerings since 2020. This strategic decision reflects the company’s focus on regulatory compliance and sound financial management practices in the competitive financial environment.

Safe Harbor Statement

In light of this announcement, the company emphasizes its reliance on future-oriented statements, adhering to the Private Securities Litigation Reform Act of 1995. This includes projections regarding plans, objectives, strategies, and assumptions about future events that may differ significantly from actual results due to various risks and uncertainties. Investors are advised not to overly rely on these projections, as they are influenced by market conditions and regulatory landscapes, which may evolve unexpectedly.

The company has made it clear that they do not intend to publicly update these forecasts in accordance with changing circumstances post-announcement. A deeper understanding of the company's operational performance can be gleaned from their SEC filings available at www.sec.gov.

As investors and stakeholders digest this critical information, there remains cautious optimism surrounding the future trajectory of Dunxin Financial Holdings Limited. The changes to the ADS ratio are part of broader strategies aimed at optimizing market performance and enhancing shareholder value amidst a challenging financial landscape.