China ZhengTong Auto Services Holdings Limited (ZhengTong Auto) released its latest quarterly update, outlining progress toward trading resumption while its shares remain suspended on the Hong Kong Stock Exchange since 2 July 2025.

ZhengTong Auto reported continued efforts to raise operating efficiency in its core 4S dealership, automotive supply-chain and property segments. Measures include streamlining management, accelerating the shift to new-energy vehicle brands, closing or restructuring underperforming outlets, centralising procurement and widening digital management.

Capital structure has been strengthened through the 19 May 2026 disposal of 100% equity in Shenzhenshi Huianqi Investment Advisory Co., Ltd., eliminating the need for further capital expenditure on a Shenzhen property development.

To mitigate commodity price volatility, shareholders approved the launch of a bulk commodity derivatives hedging business on 22 June 2026, aligning with the group’s long-term strategic objectives.

Key to trading resumption, ZhengTong Auto signed a placing agreement on 30 June 2026 with Fortune (HK) Securities Limited to place up to 2.20 billion new shares to a minimum of six independent investors. Full completion would lift public shareholding to about 25.65% of the enlarged share capital, satisfying Hong Kong’s minimum public-float requirement and providing additional funding flexibility. The transaction requires approval at an upcoming extraordinary general meeting.

The existing waiver from the Stock Exchange’s 25% public-float rule, effective until 30 June 2026, is expiring. The company will seek a further waiver while executing the placement and other measures to restore public float.

Trading in ZhengTong Auto shares will remain suspended until the Stock Exchange is satisfied that the public float has been reinstated. Further announcements will be issued as developments occur.