HUASHENG INTL (01323) plans to offer a discount of about 5.93% for the placement of up to 151 million shares, raising approximately HK$18.49 million net.

HUASHENG INTL (01323) announced that on June 11, 2026, the company plans to offer up to 151 million shares for sale, representing approximately 20% of the total number of existing issued shares as of the announcement date; and approximately 16.67% of the total number of issued shares after the distribution and issuance of the sale shares. The sale price per share is HK$0.127, representing a discount of approximately 5.93% from the closing price of HK$0.135 per share on June 11. Assuming all sale shares are fully sold, the expected total proceeds from the sale are approximately HK$19.19 million, with a net expected amount of approximately HK$18.49 million. The company's indirectly wholly-owned subsidiary, Hainan Huasheng, has partnered with Sanya Yuchai, the developer of the Yuchai Ecological Zone in Sanya City, Hainan Province, China, to develop a strategic partnership for the Yuchai Ecological Zone precast concrete mixing station project. Hainan Huasheng plans to establish a joint venture company with Sanya Yuchai (the project company) to develop the project, and to contribute no less than RMB 20 million to the project company's share capital. The project will involve the construction and development of a concrete mixing station, storage system, transportation system, and laboratory. Construction is expected to commence by the end of 2026. The planned annual production capacity of the project is approximately 2 million cubic meters per year. Hainan Huasheng is currently working with Sanya Yuchai to finalize the cooperation agreement for the project. Sanya Yuchai is a state-owned enterprise owned by the Yuchai Ecological Zone Management Committee in Sanya City. The company plans to use the net proceeds from the sale for capital injection into the project company after the cooperation agreement is signed.