#USA #Hong Kong #Dunxin Financial Holdings #ADS Ratio Change #OTC DXFFY

Dunxin Financial Holdings Limited: Major Announcement on ADS Ratio Change

On December 4, 2024, Dunxin Financial Holdings Limited, an investment entity focused on real estate and digital technology security in Hong Kong, will implement a significant shift in its American Depositary Shares (ADS) ratio. This alteration will see the ratio change from one ADS representing 480 Class A ordinary shares to one ADS representing 60,000 Class A ordinary shares.

This switch is poised to impact trading dynamics for Dunxin’s ADS on the Over-the-Counter (OTC) market under the ticker symbol "DXFFY." As per the company’s announcement, this change essentially mirrors a reverse stock split at a ratio of 1 for 125. However, it is important to note that there will be no alterations to the underlying Class A ordinary shares of Dunxin.

Impact on ADS Holders

For current ADS holders, the upcoming change will require them to surrender their ADS to the depositary bank for cancellation and exchange based on the new ADS ratio. The depositary bank has committed to providing additional details via a notification to all registered ADS holders. Furthermore, new fractional ADS will not be issued as part of this transition; instead, fractional rights to new ADS will be aggregated and sold by the depositary bank. Subsequently, the net proceeds from this sale, after deductions for commissions, taxes, and expenses, will be distributed to the corresponding ADS holders.

With the anticipated change in the ADS ratio, the price per ADS is expected to increase proportionally. However, the company has cautioned that it cannot guarantee that the post-change price will equal or exceed the previous proportional price.

About Dunxin Financial Holdings Limited

Dunxin Financial Holdings Limited is a licensed microfinance entity operating primarily in Hubei province, China, where it has focused on providing services to individuals and small to medium-sized enterprises. The company has not issued new loans since 2020, following a strategic pause in its lending operations.

Forward-Looking Statements

This communication contains forward-looking statements as indicated by the U.S. Private Securities Litigation Reform Act of 1995. Such statements concern plans, goals, strategies, future events, performance expectations, and other underlying assumptions that are not supported by historical facts. Phrases like “may,” “should,” “plans,” “believe,” “anticipate,” and similar expressions indicate forward-looking statements.

It is essential to recognize that forward-looking statements do not guarantee future performance and involve risks and uncertainties that may lead to actual outcomes significantly differing from those outlined in these statements. Factors that could affect results include the company's strategic objectives, future business developments, product demand, technological advancements, economic conditions, and the competitive landscape in both local and international markets.

For these reasons and others, investors should refrain from placing undue trust in the forward-looking statements made in this announcement. Additional factors are discussed in the company's SEC filings that can be accessed at www.sec.gov. The company assumes no obligation to publicly review these statements following the publication date.

Through this substantial adjustment in ADS structure, Dunxin Financial Holdings Limited aims to streamline its trading processes and improve shareholder value in a highly competitive environment.