HK CHINESE LTD (00655): Controlling shareholder proposed to distribute company shares in kind.

HK CHINESE LTD (00655) has announced that the board of directors of LIPPO (the company's intermediate holding company) has resolved to declare a special interim distribution to LIPPO's eligible shareholders in the form of a physical distribution, involving up to 1.193 billion shares of company stock indirectly held by LIPPO (distribution shares), with a reference of 2420 shares being allocated for every 1000 shares of LIPPO held by eligible shareholders on the record date (Friday, January 17, 2025). The physical distribution will be settled by transferring the distribution shares currently held by Hennessy Holdings Limited (Hennessy, LIPPO's direct wholly-owned subsidiary and the company's direct holding company) to eligible shareholders of LIPPO, in accordance with LIPPO's instructions, to complete the proposed physical distribution. As of the date of this announcement, LIPPO indirectly holds equity interests in approximately 1.478 billion shares, representing about 73.95% of the issued shares, through its wholly-owned subsidiary. Following the proposed physical distribution, LIPPO shareholders who receive shares in the proposed distribution will become shareholders of the company.