CONTIOCEAN (02613) announced that as of the date of this announcement, the company's public shareholding is approximately 22.73%, which is below the minimum requirement of 25% stipulated by Rule 19A.28B(1)(a) of the Hong Kong Stock Exchange's Listing Rules. The shortfall is due to 910,000 H shares, representing about 2.28% of the company's total issued share capital as of the announcement date, being held by OCEAN YIELDS ENTERPRISES LIMITED (Ocean Yields). Ocean Yields is wholly owned by China Merchants Wing Lung Trust Limited, which serves as the trustee for the company's 2025 H-share restricted stock incentive plan adopted on August 1, 2025, applicable to non-core connected persons. These shares have not yet been granted to any participants and are therefore not considered part of the public float.
To restore the company's public shareholding as soon as possible, the company is considering the following measures: (1) Regarding the company's current domestic share conversion plan: The company has submitted an application to the China Securities Regulatory Commission. Upon completion of all filing requirements, obtaining all relevant approvals, and complying with all applicable laws, regulations, and rules, 30 million unlisted domestic shares, representing approximately 75.00% of the company's total issued share capital as of the announcement date, will be converted into H shares. After the conversion, the company will proactively communicate with major shareholders who are core connected persons to arrange for the sale of part of their holdings to independent third parties to restore the public float.
(2) As of the announcement date, the share awards available for grant under the stock incentive plan represent approximately 2.28% of the company's total issued share capital. Considering the company's strategic development and the performance achievements of qualified participants, the company expects to grant part of the share awards, subject to regulatory approval and the company's actual circumstances.
(3) As of the announcement date, under the pre-IPO share option scheme adopted on July 27, 2024, the options available for exercise by non-core connected persons represent approximately 4.44% of the company's total issued share capital. The company may issue up to 1.7755 million H shares to grantees who are non-core connected persons, subject to the fulfillment of certain exercise conditions and the exercise of these options by the grantees.
(4) In light of its strategic development and current market conditions, the company may also consider conducting equity financing in the future to expand its share capital.