CHINA HUAJUN GP (00377) plans to issue approximately 94 million capitalization shares at a discount of about 21.9% to pay off debts. Trading will resume on July 2nd.

CHINA HUAJUN GP (00377) announced that on June 21, 2026, the company entered into a settlement agreement with creditor Point Limited. Under the agreement, the company conditionally agreed to capitalize the amount owed to the creditor by issuing 94 million capitalization shares at an issue price of HK$1.00 per share to the creditor, representing a discount of approximately 21.9% to the closing price of HK$1.28 per share on the trading day before the announcement of the settlement agreement and this notice on the Stock Exchange. The company has applied for resumption of trading of its shares on the Stock Exchange from 9:00 am on July 2, 2026. Upon completion, the creditor, Mr. Li Gang, and any concerted action parties will collectively hold 94 million shares, representing approximately 53.56% of the enlarged issued share capital of the company after the issuance of the capitalization shares. It is understood that the creditor is an investment holding company fully owned by Mr. Li Gang. The announcement stated that the debt capitalization is a full and final settlement of the total debt amount, which will reduce the group's debt ratio and save on future interest expenses. This settlement method is cost-effective and will not have a negative impact on the group's cash flow.