XIMEI RESOURCES (09936) plans to buy 34.1 million shares in the secondary market before issuing new shares, raising approximately HKD 537.2 million.

XIMEI RESOURCES (09936) announces that on June 2, 2026, the company, the seller, and the joint placing agents entered into a placing and subscription agreement. According to this agreement, (i) the seller has agreed to sell, and the joint placing agents have conditionally agreed to act as agents for the seller, using their best efforts to ensure that no fewer than six underwriters purchase up to 34.1 million shares at a purchase price of HK$16.10 per share; (ii) the seller has conditionally agreed to subscribe, and the company has conditionally agreed to issue subscription shares to the seller under general authority at a price equivalent to HK$16.10 per share (and the number of subscription shares must be the same as the actual number of shares sold by the placing agents under the placing and subscription agreement). Assuming that the company's issued share capital remains unchanged from the date of this announcement until the completion of the subscription matter (excluding the issuance of subscription shares), and that the shares are fully placed, the 34.1 million existing shares to be placed would represent approximately: about 8.97% of the company's issued share capital (excluding treasury shares) as of the date of this announcement; and about 8.23% of the company's expanded issued share capital (excluding treasury shares) after the completion of the subscription matter. The purchase price per share is HK$16.10, representing a discount of approximately 19.50% compared to the closing price of HK$20.00 per share on June 2. The seller (Jiawei Resources Holding Limited) is fully owned by Mr. Wu Lijue, the founder of the group, chairman, and executive director of the company. Assuming a maximum of 34.1 million shares of the shares are fully placed and subscribed, the total amount raised from the subscription is estimated to be approximately HK$549 million, with a net amount of approximately HK$537.2 million. The company intends to use the net proceeds from the subscription as follows: (i) approximately HK$161.2 million for potential strategic investments and acquisitions in the upstream mining sector; (ii) approximately HK$161.2 million for business development and capacity expansion; (iii) approximately HK$214.8 million for working capital and general corporate purposes.