WATER INDUSTRY (01129) plans to issue convertible bonds with a total principal amount of HKD 278 million.

The WATER INDUSTRY (01129) announced that on February 16, 2026, the Company entered into a subscription agreement with subscribers (Hua Niu International Limited, Digital Advisors Limited, Mingda Fuhui Limited, Wandes Consulting Limited, and Dongyi Industrial Limited). According to this agreement, the Company has conditionally agreed to issue, and the subscribers have conditionally agreed to subscribe for, convertible bonds in the principal amount of HK$278 million (equivalent to approximately RMB 250 million). Based on a preliminary conversion price of HK$0.308 per share (adjustable), upon exercise of the conversion rights, a maximum of 903 million shares of convertible stock will be issued and allotted, representing approximately (i) 142.90% of the total number of issued shares as of the date of this announcement; and (ii) 58.83% of the total number of issued shares post-conversion of the convertible bonds (assuming no change in the Company's issued share capital from the date of this announcement until the conversion of the bonds at the preliminary conversion price). The total face value of the convertible shares (with a par value of HK$0.1 per share) will be up to HK$90.34 million. After deducting related expenses (including professional fees), the estimated net proceeds from the proposed issuance of convertible bonds is approximately HK$278 million. The Company plans to use the entire net proceeds to repay IFC debt and other liabilities of the Company. The net price per convertible share is approximately HK$0.307, calculated by dividing the total net proceeds by the maximum number of convertible shares.