According to the Zhitong Finance App, Hengtai (00197) announced that the board of directors proposed a share capital restructuring involving share mergers, share capital cuts, share splits, and offsetting accumulated losses.

Share consolidation: Issued and unissued existing shares with a face value of HK$0.10 per share for every 20 shares will be merged into a consolidated share with a face value of HK$2.00 per share.

Capital reduction: After the share consolidation takes effect, any fragmented consolidated shares arising from the company's issued share capital as a result of the share merger will be cancelled; and the face value of each issued consolidated share will be reduced from HK$2.00 to HK$0.01 through cancellation of the company's paid up share capital (limited to HK$1.99 per issued consolidated share).

Share breakdown: As soon as the share capital reduction takes effect, the unissued consolidated shares with a face value of HK$2.00 per share in the company's authorized share capital will be split into 200 new shares with a face value of HK$0.01 per share.

Offset of accumulated losses: Proceeds arising from the reduction in share capital will be transferred to the company's allocable reserve accounts and used by the company as the directors consider appropriate and as permitted by the Memorandum and Rules of Association and all applicable laws, including but not limited to excluding and offsetting any accumulated losses from time to time.