HATCHER GROUP (08365) recommends implementing capital reduction.

HATCHER GROUP (08365) announced that the company is proposing a reduction of its share capital, involving the cancellation of each issued ordinary share at a subscription price of HK$0.24 to fully paid up capital, resulting in a reduction of the face value per issued share from HK$0.25 to HK$0.01. After the reduction, each issued ordinary share with a face value of HK$0.01 will become a new ordinary share. The proceeds from the reduction will be used to offset the company's accumulated losses up to the date of the reduction, thereby reducing the company's accumulated losses. Any remaining proceeds, if any, will be transferred to the directors for use as distributable reserves of the company. Following the effective date of the share capital reduction, each unissued but authorized ordinary share will be subdivided into 25 new ordinary shares with a face value of HK$0.01 each.