Shandong Molong (00568) plans to place 25.6784 million shares to raise approximately HK$116 million

Zhitong Finance App News, Shandong Molong (00568) announced that the Company and the placement agent entered into a placement agreement on July 21, 2026 (after the trading period). According to this, in accordance with the terms set out in the placement agreement and subject to the conditions set out in the placement agreement, the Company will issue 25.6784 million new H shares with a face value of RMB 1.00 per share in the Company's registered capital. The Company agreed to issue the placed shares at the placement price, and the placement agent agreed to act as the Company's agent to induce the undertaker to purchase the placed shares at the allotted price in accordance with the best endeavour. Placed shares will be distributed and issued in accordance with a general mandate.

Assuming that all of the placed shares are placed, the total proceeds from the placement are estimated to be approximately HK$118 million, while the total net proceeds from the placement (after deducting commissions and estimated expenses) are estimated to be approximately HK$116 million. The Company intends to use the net proceeds from the placement for the following purposes: (a) approximately 90% to repay outstanding loans to optimize the Group's financial structure; and (b) approximately 10% for working capital and general corporate purposes.

Assuming that all of the placed shares are placed, the placed shares are equivalent to about 10.03% of the 256 million H shares currently issued, and approximately 3.22% of the total number of issued shares at the date of this announcement. Assuming that there is no change in the issued share capital of the Company from the date of this announcement until the placement is completed, the placed shares account for about 9.11% of the number of H shares already issued and about 3.12% of the total number of issued shares expanded through allotment and issuance of placed shares, respectively. According to the placement matters, the total face value of the shares to be placed was RMB 25.6784 million.