HK Stock Connect Insight | REFIRE (02570.HK): Cut from the Stock Connect list on Sept 7, southbound stake falls from 13.58% to 12.37%

NewTimeSpace News:On 12 October, REFIRE (02570.HK) published the poll results of its 2026 second extraordinary general meeting. The meeting approved the resolution on adjusting the use of proceeds from the subscriptions. The net proceeds from the subscriptions were approximately RMB272 million, of which approximately RMB207 million had been utilised and approximately RMB65.1 million remained unutilised as at 30 June 2026. The Company intends to reallocate the RMB50.0 million originally planned for the development of fuel cell systems and hydrogen production equipment, with RMB10.0 million going to business development, market expansion and commercial operation, and RMB40.0 million to comprehensive operational capability building.

In the Hong Kong market, the shares of REFIRE have retreated steadily from their post-listing highs. The company listed on the Main Board of the Stock Exchange on 6 December 2024 at an offer price of HK$147.00 and closed at HK$147.10 on its first trading day. On 7 September, the effective date of the removal from the Stock Connect list, the shares closed at HK$9.870, down 29.55% from HK$14.010 the previous day. The decline continued thereafter, and as of the close on 5 November, the shares stood at HK$5.250, down 0.28%.

On southbound holdings, the company was removed from the Hang Seng Composite Index following the quarterly review results published by Hang Seng Indexes Company on 21 August, with the changes implemented after the close on 4 September and taking effect on 7 September, when the stock was cut from the Stock Connect list and investors could only sell and could no longer buy. According to Choice data, southbound holdings stood at 12,283,680 shares on 7 September, equal to 13.58% of issued H shares, and rose to a period high of 12,703,520 shares, or 14.05%, on 8 September, before gradually falling back to 11,366,400 shares, or 12.37%, on 4 November.

On share capital, the Company completed its H Share full circulation on 15 June 2026, converting 26,610,565 Domestic Shares into H Shares and taking the total number of issued H Shares from 62,149,535 at end-May to 88,760,100 at end-June; on the same day it allotted and issued 10,000,000 unlisted warrants to Macquarie Bank Limited at an exercise price of HK$0.2657 per warrant, of which 1.01 million were exercised during September. In October the Company issued 460,000 new H Shares under the specific mandate granted by shareholders at the first extraordinary general meeting on 11 June 2026, lifting the total number of issued H Shares to 91,830,100 at end-October. The denominator used for southbound holding ratios is adjusted in line with these capital changes, which is why the ratio fell from 16.49% to 11.54% in mid-June and from 12.73% to 12.59% from 6 October, unrelated to any change in holdings.

On fundamentals, the most recent results are the interim results for the six months ended 30 June 2026, reported in renminbi and published on 28 August. Total revenue was approximately RMB105.0 million, down about 1.8% from the same period in 2025, of which revenue from overseas regions was approximately RMB65.141 million, up about 491.2%, lifting the overseas share of total revenue from 10.3% to 62.0%; gross profit was approximately RMB10.0 million, with the gross margin rising from -12.6% to 9.5%; loss attributable to owners of the Company was approximately RMB271.5 million, about 18.4% narrower than the RMB332.7 million loss in the same period in 2025, with basic loss per share of RMB2.94; and net cash flows from operating activities were negative RMB213 million. The Company had a total of 283 employees in the first half of 2026, down 28.35% year on year. No dividends were declared for the six months ended 30 June 2026.