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Dunxin Financial Holdings Announces ADS Ratio Change

Dunxin Financial Holdings Limited, commonly referred to as Dunxin, recently made an announcement concerning a modification in its American Depositary Shares (ADS) ratio. In a statement made on December 3, 2024, the company revealed its intention to shift the current ratio from one ADS representing 480 Class A ordinary shares to a new ratio of one ADS for 60,000 Class A ordinary shares.

This strategic decision aims to adjust the trading dynamics of Dunxin’s ADS on the OTC Pink market. The change will take effect at the opening of trading on December 4, 2024, based on U.S. Eastern Time. For current ADS holders, this alteration will effectively equate to a reverse split of one-for-one hundred and twenty-five. It is important to note that while the ADS ratio may change, there will be no modifications to the Company’s Class A ordinary shares.

ADS holders will be required to surrender their existing ADS to the depositary bank for cancellation and exchange coinciding with this ratio change. Detailed instructions will be provided by the depositary bank to ensure a smooth transition for all parties involved. Following this change, Dunxin's ADS will continue to be traded under the symbol 'DXFFY' on the OTC.

Additionally, it is crucial to mention that fractional new ADSs will not be issued because of the ratio adjustment. Instead, fractional entitlements to the new ADSs will be collected and sold by the depositary bank. The resulting cash from these sales, after deducting fees, taxes, and expenses, will be distributed to relevant ADS holders.

The ADS price is expected to rise proportionally following this ratio change; however, the company does not guarantee that the new ADS price will match the old price on a one-to-one basis. Investors and current shareholders are advised to stay alert for additional updates, particularly with respect to trading dynamics post-implementation.

About Dunxin Financial Holdings Limited

Dunxin operates as a licensed microfinance lender in Hubei Province, China, catering to the needs of individuals and small to medium-sized enterprises (SMEs). However, the company has put a hold on its loan offerings since 2020, focusing instead on its real estate operation management and investment services alongside its digital technology security business.

Dunxin underscores the uncertainty inherent in forward-looking statements in communications, especially when discussing future objectives and performance outcomes. As the company navigates through its operational changes, various factors could influence market performance, including competition dynamics, changing technology, and even regulatory landscapes in China—some of the key areas where Dunxin aims to strengthen its foothold.

As the financial and investment landscape continues to evolve, Dunxin Financial Holdings Limited remains poised to adapt to new market realities while fostering its shareholder value through strategic decisions like the recent ADS ratio change.