China Technology Group (01725) plans to discount about 9.09% and place up to 164 million shares to raise about HK$48.58 million

According to Zhitong Finance App News, China Technology Group (01725) announced that on August 18, 2026 (after the trading period), the Company entered into a placement agreement with the placement agent. According to this, the Company has agreed to place up to 164 million shares of placement shares to no less than six undertakers (themselves and their ultimate beneficial owners (if applicable) are independent third parties) at an placement price of HK$0.300 per share on a best-effort basis.

Assuming that there is no other change in the issued share capital of the Company from the date of this announcement to the date of completion of the placement, the maximum number of shares placed under the placement is equivalent to (i) approximately 20.00% of the Company's current issued share capital at the date of this announcement; and (ii) approximately 16.67% of the Company's issued share capital which was expanded by allocating and issuing the highest number of shares immediately after the placement was completed. The placement price of HK$0.300 per share is approximately 9.09% off of the closing price of (i) HK$0.330 per share as reported on the Stock Exchange on August 18, 2026.

Assuming that all placed shares are successfully placed, the total amount of proceeds from the placement will be at most approximately HK$49.1 million. The maximum net proceeds are approximately HK$48.58 million (after deducting placement commissions payable to placement agents and other related costs and expenses incurred during the placement process), of which (i) approximately HK$20 million was invested in the company to expand the precision manufacturing business to extend the Group's precision manufacturing business from “electronic assembly” to “advanced material processing” to enhance vertical integration and closed-loop capabilities; and (ii) the remaining balance of up to HK$28.58 million is used for the Group's general operating capital, including but not limited to the company's salary, rent, and professional office expenses Continuing administration expenses.