China Shengmu Organic Milk Limited reported that its public float stands at 12.87%, remaining below the 15% threshold stipulated in Rule 13.32B of the Hong Kong Listing Rules. Because the market value of shares held by the public is also under HK$0.50 billion, the company is classified as having a “Significant Public Float Shortfall” under Rule 13.32F.

Under Rule 13.32G(3), the Hong Kong Stock Exchange may cancel China Shengmu’s listing if the shortfall is not rectified by 2 February 2028.

The controlling shareholder group (referred to as the CMD Directors) has pledged to restore compliance “at the earliest possible moment” and is evaluating both on-market and off-market share disposals. Management expects to raise the public float to at least 15% by the end of June 2027.

Until compliance is regained, the company must continue to disclose monthly progress updates and avoid any transactions that could further reduce the public float unless exceptional circumstances are demonstrated. Shareholders and potential investors are advised by the exchange to exercise caution when trading the stock.