GRAPHEX GROUP (06128) is planning to terminate the American depository receipt program.

GRAPHEX GROUP (06128) announced that it voluntarily terminated its sponsored American Depositary Receipt (ADR) program in the United States. The ADRs are currently trading on the OTC Expert Market operated by OTC Markets Group, Inc., under the symbol "GRFXY". The company initiated the ADR program in the United States for the first time in 2020 and was approved to trade on the OTCQX market operated by OTC Markets Group on October 15, 2020. Each ADR represented 20 ordinary shares of the company with a par value of HK$0.01 per share. In August 2022, the company completed a public offering of 5.4 million ADRs, which were traded on the American Stock Exchange. On March 26, 2025, the company implemented a share consolidation, combining every 5 shares with a par value of HK$0.001 into 1 share with a par value of HK$0.05. Trading of the ADRs on the American Stock Exchange was suspended on May 15, 2025, and delisted on May 23, 2025. Currently, the ADRs are traded on the OTC Expert Market, with each ADR equivalent to 20 ordinary shares. The decision to terminate the ADR program was based on an evaluation of various factors, including the low percentage of ADRs compared to total ordinary shares and capital of the company, limited trading volume of ADRs compared to shares traded on the Hong Kong Stock Exchange, and expectations that the Hong Kong Stock Exchange will provide channels to meet the company's fundraising needs and global investments. On April 10, 2026, the company notified The Bank of New York Mellon, the depositary of the ADRs, to start the process of terminating the deposit agreement among the company, the depositary, and ADR holders. According to the agreement, the depositary will issue termination notices to all ADR holders with a termination date set at least 90 days after the notice and terminate the agreement on that date. The depositary issued termination notices to all ADR holders on April 16, 2026, with the termination date set for July 14, 2026 (effective from 5:00 pm Eastern Time). ADR holders can continue to exchange their ADRs for ordinary shares before the termination date. After the termination date, the depositary is expected to sell unredeemed ADRs and distribute the net proceeds to holders after deducting relevant expenses. After terminating the ADR program, the company will continue to list and trade its ordinary shares on the Hong Kong Stock Exchange (6128). The company intends to continue publishing important information in English on its website, including announcements made on the Hong Kong Stock Exchange.