ZG GROUP-W (06676.HK): Founders Convert 41.35m B Shares, Then Transfer to Shougang Fund Unit

NewTimeSpace News: On 11 November 2026, ZG Group (stock code: 6676) published an inside information announcement that the board was notified by executive directors and shareholders Wang Dong and Wang Changhui, and by shareholder Beijing Jianshi Hongyuan Investment Management Centre (Limited Partnership), that Pangmao1 Ltd, indirectly controlled by Wang Dong, and Pangmao2 Ltd, indirectly controlled by Wang Changhui, intend to convert their 27,127,922 and 14,226,323 B shares respectively into A shares on a one-for-one basis.

Following conversion, a total of 41,354,245 B shares will become the same number of A shares, representing about 21.7% of all issued B shares as at the date of the announcement, and Pangmao1 and Pangmao2 will hold no B shares. Together with the 59,040 and 30,960 A shares held immediately before conversion, they will hold 27,186,962 and 14,257,283 A shares respectively, all of which they intend to transfer to Jingxi Holdings Limited, totalling 41,444,245 A shares.

After the transfer, Pangmao1 and Pangmao2 will hold no A or B shares; Jianshi Hongyuan and Jingxi Holdings will hold 102,686,809 and 41,444,245 A shares, or about 9.6% and 3.9% of the issued share capital. Wang Dong and Wang Changhui will beneficially own 130,336,463 and 19,255,154 B shares, carrying about 53.9% and 8.0% of the voting rights on matters other than reserved matters. Their concert party arrangement remains unchanged, control will not change, and they have no further reduction plans beyond this transfer.

Jingxi Holdings is an affiliate of Jianshi Hongyuan and a wholly-owned subsidiary of Shougang Fund, which holds 99.9% of the partnership interests in Jianshi Hongyuan. After the transfer, Shougang Fund will be deemed interested in about 13.5% of the issued shares and will become a substantial shareholder. Under Rule 8.24, those shares will not be treated as public float, although the Company confirms it will maintain the public float required by Rule 13.32B(1).