Asset Chain Limited (Asset Chain, HKEX:00616) has released its Monthly Return for the period ended 31 July 2026, disclosing a month of capital stability but highlighting sizeable potential dilution from outstanding convertible notes.
Key Points
1. Share Capital and Public Float • Authorised share capital remained unchanged at 40.00 billion ordinary shares with a par value of HKD 0.01, equivalent to HKD 400.00 million. • Issued share capital stood flat at 1.87 billion shares, with no treasury shares on record. • The company confirmed full compliance with the Main Board’s 25% minimum public-float requirement.
2. Absence of Primary Market Activity • July 2026 saw zero issuance or cancellation of shares, no share repurchases, and no movements in treasury stock. • There were no new share options, warrants, or other equity instruments granted or exercised during the month.
3. Outstanding Convertible Notes—Significant Potential Dilution Asset Chain’s capital structure continues to feature two active convertible notes held by Goodco Development Limited: a) 2023 Convertible Note – Outstanding principal: HKD 24.50 million – Current conversion price: HKD 0.05 per share – Shares still convertible: 490.00 million
b) 2025 Convertible Note – Outstanding principal: HKD 286.80 million – Conversion price: HKD 0.169 per share – Shares potentially issuable: 1.70 billion
Combined, the two instruments could increase the company’s share count by up to 2.19 billion shares, representing a possible expansion of approximately 117% over the current 1.87 billion shares in issue.
4. Governance and Compliance Director Lai Law Kau affirmed that all outstanding securities and any prior issuances comply with the Hong Kong Listing Rules and other applicable regulations. All proceeds due to the company have been duly received.
Implications While July recorded no equity movements, the sizeable headroom under the authorised share capital and the outstanding convertible notes underscore the potential for material future dilution. Investors monitoring Asset Chain’s capital structure should note these instruments’ terms—particularly the low HKD 0.05 conversion price of the 2023 note—and their cumulative capacity to more than double the current issued share base if fully converted.