ZHONGSHI MINAN (08283) plans to carry out a "1-for-5" rights issue, aiming to raise around HK$96.97 million in net proceeds.

ZHONGSHI MINAN (08283) announced that the company plans to issue 5 shares for every 1 share held on the record date as the basis for a rights issue. The subscription price for each rights issue share is HK$0.35 per share, representing a discount of approximately 23.91% to the closing price of HK$0.460 per share on the last trading day on the Stock Exchange of Hong Kong. By issuing a maximum of 288 million shares of rights issue shares, the company aims to raise up to HK$101 million (before deducting expenses) (assuming the number of issued shares remains unchanged on or before the record date). Assuming full subscription for the rights issue shares, and the number of issued shares remains unchanged on or before the record date, the estimated net proceeds from the rights issue are approximately HK$96.97 million. The company plans to use the net proceeds as follows: (i) Approximately HK$43 million for developing refined sales and marketing strategies, including: (i) around HK$20 million for establishing a research and development team and related capital expenditure to develop the group's proprietary platform and artificial intelligence technology, big data center, and software; (ii) around HK$5 million for setting up a creative marketing and advertising department; and (iii) around HK$18 million for expanding creative marketing services, including marketing and advertising expenses required for building client networks and operational funds needed for operating creative marketing services. The funds from the above plans are expected to be utilized by July 2027; (ii) Approximately HK$20 million for a reserve for future cooperation/investment opportunities, expected to be utilized by the end of 2026; (iii) Approximately HK$17 million for repaying outstanding debts owed to Mr. Wang, expected to be discharged immediately after the completion of the rights issue; (iv) Approximately HK$7 million for supplementing the operational funds for the group's existing core businesses, including but not limited to direct and indirect costs related to the operation of the group's automotive-related business and instant food intelligent kitchen solutions business, expected to be utilized by January 2027; and (v) Approximately HK$9.97 million for supplementing the company's general operational funds (including but not limited to paying employee expenses, director fees, office rent, legal and professional fees, and other routine expenses), expected to be utilized by January 2027. The company intends to issue 5 rights issue shares for every 1 share held and deposited on the record date (currently expected to be January 2, 2026 (Friday) to eligible shareholders. The rights issue will not apply to excluded shareholders. Furthermore, the board of directors proposes to change the trading unit size from 1000 shares to 5000 shares starting from 9:00 am on January 7, 2026 (Wednesday). The board of directors recommends increasing the company's authorized share capital from HK$200 million (divided into 160 million shares) to HK$200 million (divided into 1.6 billion shares) by adding an additional 1.44 billion shares. The increase in authorized share capital will take effect following the approval by ordinary resolution at a special general meeting of shareholders.