According to the Zhitong Finance App, Coastal Home (01124) issued an announcement. The board of directors proposed a share merger. The basis is that issued and unissued existing shares with a face value of HK$0.1 per 10 shares will be merged into a consolidated share with a face value of HK$1.0 per share.

As of the date of this announcement, the Company had 4.146 billion outstanding shares that had been paid up or recorded as fully paid existing shares. Assuming that no shares are issued or repurchased from the date of this announcement until the effective date of the share merger, the company will have 414.6 million shares paid up or recorded as fully paid out consolidated shares after the share merger takes effect.

As of the date of this announcement, existing shares were traded on the Stock Exchange with 2,000 existing shares per trading unit. The board of directors recommended that each lot traded on the Stock Exchange be changed from 2,000 existing shares to 10,000 consolidated shares after the share consolidation takes effect.

Based on the closing price of HK$0.023 per existing share (equivalent to HK$0.23 per consolidated share) reported on the Stock Exchange on the date of this announcement, the market value of each trading unit of 10,000 consolidated shares is HK$2,300 (assuming that the share consolidation and change in the trading unit for each lot has taken effect).