Wanguo Gold Group (03939) plans "1 to 4" stock split.

WANGUO GOLD GP (03939) announces that the board of directors proposes to subdivide each existing and unissued share with a par value of 0.1 Hong Kong dollar into 4 shares with a par value of 0.025 Hong Kong dollar. Upon the subdivision of shares becoming effective, the company's authorized share capital will be 1 billion Hong Kong dollars, divided into 400 billion subdivided shares, of which 44.25 billion subdivided shares will be issued and fully paid or accounted for as fully paid (assuming no further issuance or repurchase of shares after the date of this announcement). As of the date of this announcement, shares are currently traded on the Stock Exchange in units of 2000 shares per transaction. The board of directors further proposes that upon the subdivision of shares becoming effective, the trading unit on the Stock Exchange for the subdivided shares will be changed to 500 shares per transaction. The proposed subdivision of shares will reduce the face value and trading price per share, and increase the total number of issued shares. Based on the closing price of 30.74 Hong Kong dollars per share reported on the Stock Exchange as of the date of this announcement, the market value of each transaction unit of 2000 shares is 61,500 Hong Kong dollars. The estimated market value of each transaction unit of 500 subdivided shares is theoretically expected to decrease to 38,425 Hong Kong dollars shortly after the subdivision of shares becomes effective. The board of directors believes that the subdivision of shares will lower the investment threshold, improve the liquidity of the company's shares, attract more investors, and broaden the company's shareholder base. The board of directors have also taken into consideration general feedback received from shareholders from time to time, including suggestions regarding the potential increase in market participation and improvement in the liquidity of the company's shares through the subdivision of shares. Therefore, it is anticipated that the subdivision of shares will result in a decrease in the trading price per share and the market value of each transaction unit of shares. Given the current market conditions, a market with higher liquidity will provide investors with greater flexibility in buying and selling the company's shares, thereby promoting the company's future growth and development.