SUCCESS DRAGON (01182.HK): proposes to reduce share premium account of about HK$1,444.5 million to nil

NewTimeSpace News: On 11 November 2026, Success Dragon International Holdings Limited (01182.HK) announced that the board intends to propose at a special general meeting a resolution to reduce the credit standing to the share premium account of the Company in accordance with the Companies Act 1981 of Bermuda and the Company's bye-laws. As at 31 March 2026, the credit standing to the share premium account was approximately HK$1,444,531,000. It is proposed to reduce the entire credit to nil, apply approximately HK$1,095,193,000 of the credit arising from the reduction to offset the entire amount of the Company's accumulated losses as at the same date, and transfer the resulting balance of approximately HK$349,338,000 to the Company's contributed surplus account.

The reduction is conditional upon shareholders passing a special resolution at the special general meeting and compliance with section 46(2) of the Companies Act, including the directors being satisfied that there are no reasonable grounds to believe that the Company is, or after the reduction would be, unable to pay its liabilities as they fall due. It is expected to take effect on the business day immediately following the date of the special resolution. The board considers that the reduction will eliminate the accumulated losses, enable shareholders and investors to better understand the Company's financial position and existing business, and provide flexibility to declare dividends in future when the board considers appropriate, while stressing that there is no assurance that dividends will be declared or paid even after the reduction takes effect.

The reduction does not involve any reduction of the Company's authorised or issued share capital, nor of the nominal value of its shares of HK$0.01 each, or the trading arrangements for such shares. A circular containing further details and the notice of the special general meeting will be despatched in due course, and no shareholder is required to abstain from voting on the relevant resolution. The Company reminded that the reduction is conditional and may not proceed, and shareholders and potential investors should exercise caution when dealing in its securities.