XTALPI-P(02228) plans to issue up to 342 million shares of shares for sale, raising a net amount of HK$2.08 billion.

XTALPI-P (02228) announces that on February 19, 2025, the Company entered into a placement agreement with the placing agent, whereby the Company agrees to issue shares under general mandate, and the placing agent agrees (individual and not jointly or jointly and individually) to act as the Company's agent to procure the placees to subscribe for up to a maximum of 342 million shares at the placement price of HK$6.10 per share. The number of placement shares represents approximately 9.31% of the Company's existing issued share capital as of the announcement date and approximately 8.52% of the Company's enlarged issued share capital after completion (assuming all placement shares are fully subscribed and there are no changes in the Company's issued share capital from the announcement date to the completion date). The placement price of HK$6.10 per share represents a discount of approximately 5.86% to the closing market price of HK$6.48 per share on the Stock Exchange of Hong Kong on February 18, 2025 (the fixed placement price date). If all 342 million placement shares are fully subscribed, the total proceeds to be raised from the placement after completion are estimated to be approximately HK$20.88 billion, with estimated net proceeds of approximately HK$20.8 billion. In a previous placement, the Company raised net proceeds of approximately HK$1.125 billion, which were used for continuous product iteration and enhancement, improvement of research and development capabilities and solution capabilities; advancement of commercial development, strengthening external collaborations, expanding the Company's scale and market share; potential investment opportunities, talent attraction and recruitment, working capital supplementation, and general corporate purposes. Shortly after the previous placement, DeepSeek in Hangzhou, China, launched the AI chatbot Siasun Robot & Automation at a highly competitive cost, achieving remarkable success. By implementing a powerful open-source AI model, DeepSeek has lowered the barrier for AI development, enabling more researchers, startups, and organizations to build and deploy AI, bringing unprecedented market sentiment and positive prospects to the AI industry. In addition, in February 2025, senior government officials from China visited the Hong Kong park of the HeTao Shenzhen-Hong Kong Science and Innovation Cooperation Zone and the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone as part of their itinerary, inspecting the Group's operational premises and expressing strong support for the Group's business development and the overall development of the Greater Bay Area. Given the Company's strong performance and optimistic market outlook and prospects, the Company believes that now is the appropriate time to raise additional funds for the following purposes: continuous product iteration and enhancement, improvement of research and development capabilities and solution capabilities, data generation and model establishment; product commercialization and business development, strengthening business cooperation with external parties and partners engaged in industries similar to and mutually beneficial to the Group, expanding the Company's scale and market share; and potential M&A opportunities, talent attraction and recruitment, working capital supplementation, and general corporate purposes.