CANGGANGRAILWAY (02169) proposes to issue 600 million shares at a discount of approximately 7.29%, raising net proceeds of approximately HK$299.2 million.

CANGGANGRAILWAY (02169) announces that on 29 September 2026, the Company proposes to allot and issue 600 million shares to the subscriber (Hebei Cangzhou Transportation Control Group Co., Ltd.), representing approximately 15.00% of the Company's issued share capital as at the date of this announcement; and approximately 13.04% of the Company's issued share capital as enlarged by the allotment and issue of the subscription shares. The subscription price is HK$0.50065 per subscription share, representing a discount of approximately 7.29% to the closing price of HK$0.5400 per share on 28 September. The gross proceeds from the subscription will be approximately HK$300.4 million, and the net proceeds from the subscription are estimated to be approximately HK$299.2 million. The Company intends to apply the net proceeds from the subscription as follows: (i) approximately 87% for capital expenditure and other related expenses to construct necessary railway, road freight and/or ancillary facilities to connect Huanghua Port with the relevant railway stations of the Group's Canggang Line, including but not limited to constructing, acquiring, upgrading or improving railway connection facilities, deploying AI-driven transportation infrastructure and facilities or other road connection arrangements, and developing freight yards, loading and unloading facilities, dispatch and control systems and other ancillary infrastructure; (ii) approximately 10% for upgrading and renovating the railway turnouts of the Canggang Line, including replacement, improvement and related installation works of turnouts and railway ancillary facilities, so as to enhance operational safety, transportation efficiency and line capacity; and (iii) approximately 3% for upgrading and strengthening the Group's existing intelligent dispatch system and computerised railway signalling system for the Canggang Line, including replacement, optimisation or improvement of relevant hardware, software and communication equipment, enhancing system compatibility, testing, commissioning and other related expenses, so as to improve the Group's dispatch efficiency, signalling reliability and digital operational capabilities.