Zhongmu International's (01822) share offering was effectively accepted, raising approximately HK$74 million in net terms of approximately 58.80%

According to the Zhitong Finance App, Zhongmu International (01822) issued an announcement. At 4:00 p.m. on August 28, 2026 (Friday) (that is, the final acceptance period), it has received a total of 19 valid admissions, involving a total of 580 million shares to be offered, accounting for about 58.80% of the total number of shares offered (shares offered) offered under the stock offering. According to this, the shortfall in the share offering subscription amount to 407 million shares, accounting for about 41.20% of the total number of shares offered. Such shares are subject to compensation arrangements.

In accordance with section 7.21 (1) (b) of the listing rules, the Company has made compensation arrangements through a placement agreement with the placement agent. Accordingly, the Company has appointed a placement agent, and the placement agent has agreed to act as the Company's placement agent to do its best to place unsubscribed shares and unsold shares of unqualified shareholders to independent undertakers during the placement period.

At 4:00 p.m. on September 8, 2026 (Tuesday) (the deadline for placement agents to place shares), 407 million unsubscribed shares were successfully placed to no less than six (6) undertakers at a price of HK$0.077 per share equivalent to the subscription price. As a result, there is no net income to distribute to non-acting shareholders.

All conditions relating to the share offering and placement as set out in the share offering regulations have been fulfilled, and the share offering and placement became unconditional at 4:00 p.m. on September 9, 2026 (Wednesday).

According to the results of the acceptance of the offer and the results of the placement matters, the pre-allotted and issued shares were 987 million shares, accounting for 100% of the total number of shares offered for subscription under the share offering.

The total proceeds from the share offering were approximately HK$76 million, while the net proceeds from the offering (after deducting related expenses) were approximately HK$74 million. As disclosed in the stock offering regulations, the Company intends to use the net proceeds from the offering for the following purposes:

(i) Approximately HK$34 million (or approximately 46.0% of the net proceeds) is intended to be used for research and development of the Group's food and beverage products over a period of 12 months after completion of the share offering, as follows: (i) Approximately HK$16.5 million is used to purchase R&D equipment and platforms to develop proprietary rights and technology relating to such high-throughput fermentation, the correlation between microbiota and health foods, personalized nutritional solutions based on genetic testing and gene-edited microorganisms to produce food and beverage products; (ii) Approximately HK$13 million is used for the costs associated with continuous testing and development of food and beverage products; (iii) the cost of approximately HK$4.5 million for management and technical personnel with extensive knowledge and experience in the food and beverage industry in Hong Kong and/or China;

(ii) Approximately HK$8 million (or approximately 10.8% of net proceeds) is intended to be used for marketing and promotional activities to support the Group's expansion of the food and beverage business during the 12 months after completion of the share offering, as follows: (i) approximately HK$5.2 million for sales and marketing teams and key opinion leaders to promote food and beverage products developed by the Group; and (ii) approximately HK$2.8 million for marketing materials, trade shows and exhibition costs to promote the Group's food and beverage products;

(iii) Approximately HK$6 million (or approximately 8.1% of net proceeds) is intended to be used for marketing and promotional activities to support the Group's timber-related business, including the cost of marketing materials, trade shows and exhibitions;

and (iv) Approximately HK$26 million (or approximately 35.1% of net proceeds) is intended to be used as the Group's working capital, including but not limited to the Group's operating costs, staff costs, rent expenses, professional expenses and other office expenses. The amount of HK$26 million allocated for general working capital purposes is intended to be used for: (a) inventory, accounts receivable, prepayments and deposits; (b) the Group's daily operating expenses, which for the year ended 31 December 2025 mainly include employee benefit expenses of approximately HK$7.012 million, expenses relating to short-term rental of general offices, approximately HK$950,000 for utilities and general expenses, and approximately HK$1.18 million for auditor's remuneration; and (c) as a buffer fund to cover any shortfall in the stock offering and as a general reserve.