HK Stock Connect Insight | SCIENTECH (02291.HK): Cut from the Stock Connect list on Sept 7, southbound stake falls to 2.11%

NewTimeSpace News:Scientech (02291.HK) has continued to execute share buybacks. According to the company's Next Day Disclosure Return, it repurchased 1,000 H shares on the Hong Kong Stock Exchange on 28 October at HK$14.89 per share, for an aggregate price of HK$14,890, with the repurchased shares to be cancelled.

As at 28 October, the company had 342,874,997 issued shares excluding treasury shares and no treasury shares. Under the repurchase mandate approved on 22 May 2026, it has repurchased 4,974,000 shares in total, equal to 1.4345% of the issued shares as at the date of the resolution granting the mandate. The company has bought back shares on 22 consecutive trading days since 24 September, repurchasing 1.04 million shares for HK$14.08 million up to 27 October, of which 248,000 shares for HK$3.51 million were bought back on 27 October alone, the largest single-day amount in that stretch.

In the Hong Kong market, the share price of Scientech has moved notably higher recently, briefly reaching HK$16.050 intraday on 29 October before retreating. As of 14:51 Hong Kong time on 29 October, the shares stood at HK$14.770, down 4.83%.

On southbound holdings, the company was removed from the Stock Connect list effective 7 September 2026 following changes to the Hang Seng Composite Index quarterly review results, with the Shanghai Stock Exchange publishing its adjustment notice on 4 September and the Shenzhen Stock Exchange announcing the change on 7 September. Mainland investors have been permitted to sell but not to buy since the effective date. The Hong Kong Exchange CCASS shareholding records show that southbound holdings kept declining both before and after the removal: the Shanghai and Shenzhen Stock Connect seats together held 11.07 million shares on 21 August, falling to 7.235 million shares on 28 October. Against 342,874,997 issued shares, the holding ratio fell from 3.23% to 2.11%.

On fundamentals, the most recent results are the interim results for the six months ended 30 June 2026, published on 21 August and reported in renminbi. Revenue was RMB310.1 million, down 5.9% year on year; gross profit was RMB254.5 million, down 10.5%; profit attributable to equity shareholders of the parent was RMB146.5 million, down 19.5%; and R&D expenses were RMB19.5 million, down 22.9%. The Board does not recommend an interim dividend. After the reporting period, the company entered into an equity transfer agreement with Lepu Medical on 21 August to acquire a 54.2384% stake in Shanghai Minwei Biotechnology Co., Ltd. for cash consideration of RMB1,088,387,980, constituting a major transaction under Chapter 14 and a connected transaction under Chapter 14A of the Listing Rules. The despatch date of the circular was first extended from 14 September to 19 October, and was further extended to on or before 19 November in an announcement made on 19 October.