SCHEDULE: AIFU Inc. Ownership Dilution Reported

Expansion Group Ltd and Ileana Zhao report a decrease in their beneficial ownership percentage of AIFU Inc. to 14.13% following a new share issuance.

Summary

• Expansion Group Ltd and Ileana Zhao have filed an amendment to their Schedule 13D, reporting a dilution in their beneficial ownership of AIFU Inc. shares.
• The reporting persons' aggregate beneficial ownership percentage decreased from a previous level to approximately 14.13% as of November 6, 2026.
• This dilution is a direct result of AIFU Inc. issuing 11,203,443 Class A ordinary shares to third parties in connection with an acquisition.
• The reporting persons did not acquire or dispose of any shares themselves; their holdings remain 13 Class A ordinary shares and 10,250,000 Class B ordinary shares.
• Expansion Group Ltd is 100% owned by Ileana Zhao, who is the sole director of Expansion Group Ltd.
• The total number of outstanding shares increased to 72,379,191, comprising 62,129,191 Class A and 10,250,000 Class B ordinary shares.
• The reporting persons' aggregate voting power remains significant, with Class B shares carrying 100 votes each compared to Class A shares' one vote.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a neutral to slightly negative score due to dilution of ownership percentage, despite no change in the absolute number of shares held by the reporting persons.

Positives

• The reporting persons' absolute number of shares held (13 Class A and 10,250,000 Class B ordinary shares) remains unchanged.
• Despite dilution, the reporting persons still hold a substantial aggregate voting power due to the structure of Class B shares.
• The company completed an acquisition, which is often a strategic move for growth.

Negatives

• The beneficial ownership percentage of the reporting persons has been diluted to 14.13% from a previously higher percentage.
• The dilution occurred due to a significant share issuance by the company, increasing the total outstanding shares.

Risks

• Further share issuances could lead to additional dilution of ownership percentage for Expansion Group Ltd and Ileana Zhao.
• The success of the acquisition that triggered the share issuance is a key factor for future value.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from management regarding future performance. The primary focus is on reporting a change in beneficial ownership percentage due to a recent share issuance related to an acquisition.

Management Comments

• The decrease in the Reporting Persons' aggregate beneficial ownership and their aggregate voting power was solely due to the increase in the total number of the Issuer's outstanding shares from the Share Issuance.

Industry Context

StockSavvy.ai notes that share issuances for acquisitions are common in many industries as companies seek to expand their market reach or capabilities. However, such issuances can lead to dilution for existing shareholders, necessitating careful monitoring of ownership stakes and voting power.

Management Changes

Stakeholder Impact

• Shareholders: Potential dilution of ownership percentage and voting power for existing shareholders not participating in the new share issuance.
• Expansion Group Ltd and Ileana Zhao: Reduced percentage ownership, though absolute share count and significant voting power remain.
• AIFU Inc.: The acquisition may lead to strategic growth, potentially benefiting all stakeholders if successful.

Next Steps

• Continued monitoring of AIFU Inc.'s share structure and any further issuances.
• Evaluation of the strategic success of the acquisition that led to the share issuance.

Key Dates

Keywords

AIFU Inc., Schedule 13D, Beneficial Ownership, Share Dilution, Class A Ordinary Shares, Class B Ordinary Shares, Acquisition, Voting Power