WK GROUP (02535) accused controlling shareholder of placing 400 million shares.

WK GROUP (02535) announced that the Board of Directors has been informed by Mr. Chen Yongkang, the Chairman of the Board of Directors, non-executive directors, and the controlling shareholder (as defined in the Listing Rules) that WK (BVI) Limited (the seller, a company in which Mr. Chen Xinji, Mr. Chen Xinjiang, Mr. Chen Yongkang, Ms. Cai Zhichang, and Ms. Chen Shuwen legally and beneficially own 30%, 30%, 15%, 15%, and 10% respectively) has entered into a placement agreement with Huafu Jianye Securities Co., Ltd. on September 1, 2025 (after trading hours). Accordingly, the placement agent has agreed to use their best efforts to facilitate investors to purchase up to 4 billion existing shares held by the seller at a price not less than HK$0.25 per share. As of the date of this announcement, the 4 billion placement shares represent 20% of the company's existing issued share capital. Upon completion of the placement and assuming all placement shares are allocated to subscribers, the seller's equity will be reduced to 6.2 billion shares, representing 31% of the company's total issued share capital. Therefore, the seller will continue to be the controlling shareholder of the company. The company expects that the placement will not have any adverse impact on the operations of the company and its subsidiaries.