HK Stock Connect Insight | XUNLONG SCITECH (06715.HK): Southbound stake rises to 0.99% after Stock Connect inclusion on Sept 7

NewTimeSpace News: On 3 November, XUNLONG SCITECH (06715.HK) published the October monthly return, in which there was no change in the issued shares or treasury shares during the month, leaving the total number of issued H shares at 108,885,600. At the extraordinary general meeting held on 22 September, three resolutions were passed with 99.79% of votes cast in favour, covering the 2026 interim profit distribution plan, the change of the registered address and the amendment of the articles of association. The interim dividend totals RMB81.66 million, or RMB0.75 per share before tax, declared in RMB and paid in HKD to H share holders, and is expected to be paid tomorrow (11 November).
On the Stock Connect front, the company was added to the eligible securities list on 7 September, after which southbound holdings continued to build up, reaching 1,088,400 shares as at 9 November, with the ratio to issued H shares rising to 0.99%.
In the Hong Kong market, the shares of XUNLONG SCITECH have retreated steadily from their post-listing highs. The company listed on the Main Board of the Stock Exchange on 30 June 2026 at an offer price of HK$75.50, offering 16,332,900 H Shares globally for gross proceeds of about HK$1,233 million and net proceeds of about HK$1,146 million; it closed at HK$114.000 on its first trading day, 50.99% above the offer price and the highest close since listing, and traded as high as HK$120.200 intraday that day. The decline continued thereafter, with the lowest close since listing of HK$41.860 on 29 October and the lowest intraday price since listing of HK$40.800 on 30 October. As at the afternoon open on 10 November, the shares stood at HK$49.58, down 0.84%.
On results and the share register, according to the interim results announcement published on 24 August, revenue for the first half of 2026 amounted to RMB361.9 million, up 20.0% from RMB301.6 million in the same period of 2025; profit for the period was RMB178.7 million, up 1.6%; and adjusted net profit (a non-IFRS measure) was RMB209.2 million, up 15.7%, with basic earnings per share of RMB1.78. Revenue from caviar products rose 18.7% year on year to RMB330.6 million, on sales volume up 23.0% to 140,367 kg, and the company opened three new offline stores at Xi'an SKP, Hang Lung Plaza in Hangzhou and Beijing SKP during the period. On the lock-up arrangement, according to the Allotment Results Announcement published on 29 June, the eight cornerstone investors hold an aggregate of 8,146,100 H shares, representing 49.88% of the offer shares and 7.48% of issued H shares after the global offering, and the final day of the relevant lock-up undertakings is 29 December 2026.
On institutional research, BOC International (China) noted in its research report published on 22 September that XUNLONG SCITECH holds a leading position in the global caviar market by market share, backed by eight quality aquaculture bases and large-scale, multi-category live sturgeon resources, giving it a marked scarcity barrier. As newly added capacity continues to come on stream, the company is expected to fully benefit from the industry's long-standing supply-demand imbalance and to further expand its market share. At the same time, the rising proportion of self-developed varieties, combined with the continued strengthening of its own brands, has effectively optimised farming costs and consolidated pricing power over its products, and earnings elasticity is expected to be released on a sustained basis. Overall, the company captures incremental industry demand through capacity expansion and focuses on superior varieties to optimise profitability, with a clear growth logic.