Jujiang Construction Group Co., Ltd. — Major Shareholding Notification 2016

Feb 4, 2016

Announcement

==> picture [246 x 80] intentionally omitted <==

4 February 2016

High Concentration of Shareholding in Jujiang Construction Group Co., Ltd. (Stock Code: 1459)

This announcement is made by the Securities and Futures Commission (“SFC”) in respect of the concentration of the shareholding of Jujiang Construction Group Co., Ltd. (“the Company”) in the hands of a limited number of shareholders as at 25 January 2016.

In view of the high concentration of shareholding in a small number of shareholders, shareholders and prospective investors should be aware that the price of the H shares of the Company (“H Shares”) could fluctuate substantially even with a small number of H Shares traded, and should exercise extreme caution when dealing in the H Shares.

The SFC has recently completed an enquiry into the shareholding of the Company. Our findings suggested that as at 25 January 2016, 20 shareholders held an aggregate of 115,612,000 H Shares, representing 86.69% of the issued H Shares. As such, only 17,748,000 H Shares (representing 13.31% of the issued H Shares) were in the hands of other investors as at 25 January 2016.

As at 25 January 2016, the shareholding structure of the issued H shares of the Company was as follows (Note 1 & 2):

A group of 20 shareholders_(Note 3)_Other shareholdersTotal	Number of H Sharesheld(shares)% of total number ofissued H Shares(%)115,612,00086.6917,748,00013.31
	133,360,000100.00

• Note 1: Other than the H Shares, the Company has issued 400,000,000 domestic shares of the Company which are currently not listed or traded on any stock exchange.

• Note 2: Our findings further suggested that as at 25 January 2016, the 20 shareholders held an aggregate of 115,612,000 H shares, representing 21.68% of the total issued shares of the Company. Such shareholding, together with the 400,000,000 domestic shares of the Company (representing 75% of the total issued shares) held by 2 substantial shareholders of the Company, represented 96.68% of the total issued shares of the Company.

• Note 3: 111,134,000 H shares (representing 83.33% of the issued H Shares) were held by 16 shareholders who initially obtained 113,476,000 H shares through the international offer of the Company’s global offering.

==> picture [37 x 38] intentionally omitted <==

The Company was listed on the Main Board of the Stock Exchange of Hong Kong Limited on 12 January 2016 by way of global offering for a total of 133,360,000 H Shares, representing 25% of the total issued shares, at an offer price of HK$1.35 per H Share. H Share price closed at HK$1.90 on the first day of trading.

During the period from 13 January to 25 January 2016, the closing price of the H Shares increased further to close at HK$6.59 on 25 January 2016, which represented an increase of 388% from the offer price of HK$1.35.

As at 3 February 2016, the H Share price of the Company closed at HK$5.01, representing an increase of 271% from the offer price of HK$1.35 per H Share.

In view of the high concentration of shareholding in a small number of shareholders, shareholders and prospective investors should be aware that the price of the H Shares could fluctuate substantially even with a small number of H Shares traded, and should exercise extreme caution when dealing in the H Shares.

End

2