Zhitong Finance App News, Tongtian Liquor (00389) announced that on July 30, 2026, the company received a letter from a major shareholder, Mr. Wang He (holding about 10% of the company's issued shares), containing a proposal to subscribe for 20% of the company's new shares at a price of HK$0.20 per share based on a special authorization, but requiring the company to immediately withdraw, terminate, abolish and/or otherwise avoid continuing with the existing placement agreement dated July 26, 2026. The company promised to appoint an executive director nominated by the proponent to confirm the recommendation The use of proceeds from the purchase.
The board of directors stated that there were multiple reasonable grounds for rejecting the plan: the subscription constituted a related transaction and required independent shareholder approval, and the process was highly uncertain; forcibly terminating the existing placement agreement would bring legal and reputational risks; at the same time, the other party requested intervention in fund management, which undermined the company's normal governance structure, and the directors could not violate their fiduciary responsibilities to the enterprise. Furthermore, the execution of this subscription transaction still requires multiple approvals, and the implementation progress cannot be guaranteed. As a result, the Board has decided not to accept the proposal.
The board of directors has authorized Mr. Sun Jialiang, Chairman of the Company, CEO and Executive Director to sign and send a response letter to the proponent on behalf of the board of directors.