Zhonglian Development Holdings (00264) plans to discount about 14.96% and place up to 20 million shares to raise about HK$42.06 million

Zhitong Finance App News, Zhonglian Development Holdings (00264) issued an announcement. On January 6, 2026 (after the trading period), the placement agent entered into a placement agreement with the Company. According to this, the placement agent conditionally agreed to act as agents of the Company to induce no less than 6 undertakers (they and their ultimate beneficial owners are independent third parties) to subscribe for up to 20 million shares. The placement price is HK$2.16 per placed share. The placement shares will be allocated and issued in accordance with the general authorization granted to the directors at the annual general meeting of shareholders to be held on June 3, 2025.

Assuming that there is no change in the issued share capital of the Company between the date of this announcement and the completion of the placement, the maximum number of shares placed under the placement is equivalent to (i) approximately 4.33% of the Company's existing issued share capital of 462 million shares as of the date of this announcement; and (ii) approximately 4.15% of the Company's issued share capital expanded by allocating and issuing the placed shares. The total face value of the maximum number of shares to be placed under the placement will be HK$20,000. The placement price for each share placed was HK$2.16, which is approximately 14.96% off the closing price of HK$2.540 per share as reported on the Stock Exchange on January 6, 2026.

It is anticipated that the maximum total proceeds and net proceeds (after deducting placement commissions) of the placement will be approximately HK$43.2 million and HK$42.06 million, respectively. The Company intends to use the net proceeds of the placement of approximately HK$42.06 million to supplement general operating capital and enhance the Group's financial position, of which (i) approximately HK$18 million will be used to purchase materials, equipment and expenses related to leather manufacturing and/or extended cleaning services for leather and motor vehicle engines, and other trade operations; (ii) approximately HK$14.06 million will be used as the Group's general working capital, including (but not limited to) payment of rent, staff costs, professional expenses and other general administrative and operating expenses; and (iii) approximately HK$10 million will be used for non-reimbursement Pay off debts.