GCL TECH (03800) plans to issue approximately 8.73% of the issued 4.736 billion shares at a discount. Net proceeds are expected to be around HK$5.392 billion.

GCL TECH (03800) announces that on September 16, 2025 (before the trading session), the company entered into a subscription agreement with the subscriber (i), whereby the subscriber conditionally agreed to subscribe for a total of 4.736 billion subscription shares at a subscription price of HK$1.15 per share; and (ii) on September 16, 2025 (before the trading session), the company entered into a placement agreement with the placing agent for the subscription matter, whereby the placing agent conditionally agreed to use best efforts to facilitate the subscriber to subscribe for the subscription shares at the subscription price. The subscription price of HK$1.15 per share represents approximately an 8.73% discount to the closing price of HK$1.26 per share of the shares on the last trading day on the Stock Exchange. The total gross proceeds from the subscription amount to approximately HK$5.446 billion. After deducting related placement agent fees, costs, and expenses related to the subscription matter, the net proceeds from the subscription matter will be approximately HK$5.392 billion. The company intends to apply the net proceeds from the subscription matter as follows: (i) 65% mainly for three purposes: first, to fund the supply-side reform and promote structural adjustment of polysilicon production capacity; secondly, to strengthen the second curve, achieving overseas substitution with the world's leading silane gas production capacity and output, meeting the increased demand for electronic special gases in semiconductor integrated circuits, the surge in demand for silane gas from TOPCon batteries transitioning to CECEP Solar Energy BC batteries, the application demand for silane gas from solid-state and semi-solid state batteries in the lithium battery industry, and the high requirements for quality of silane gas in display panels. The construction of a new growth pole by Xinyi with silane gas; and thirdly, to optimize the company's capital structure; and (ii) 35% to be used for general operating purposes and to repay existing loans. The subscription shares represent (i) approximately 16.63% of the company's existing issued share capital as of the date of this announcement; and (ii) approximately 14.26% of the company's enlarged issued share capital after the placement and issuance of subscription shares (assuming that, except for the placement and issuance of subscription shares, there has been no change in the company's issued share capital from the date of this announcement to the completion date).