DELTON (01989) controlling shareholder plans to increase its stake in the company by RMB50 million to RMB100 million.

DELTON (01989) announces that, based on confidence in the company's future development prospects and recognition of its long-term investment value, and in order to boost investor confidence and effectively safeguard investor interests, the company's controlling shareholder Zhenyun Investment plans, within 6 months from the date of disclosure of this shareholding increase plan announcement, to increase its holdings of the company's A shares and H shares through the Shenzhen Stock Exchange trading system (including Stock Connect) and the Hong Kong Exchanges and Clearing Limited system by way of centralized bidding, using special loans for the shareholding increase and/or its own funds. The proposed increase amount shall be no less than RMB50 million and no more than RMB100 million, with no price range set. Zhenyun Investment will avoid implementing the shareholding increase plan during periods such as the quiet period for the company's periodic reports and sensitive periods for major matters. Regarding the special loan for the above shareholding increase plan, CITIC Bank Co., Ltd. Guangzhou Branch has committed to providing Zhenyun Investment with a special loan for the shareholding increase in an amount not exceeding RMB90 million, with a loan term not exceeding 36 months. Zhenyun Investment undertakes not to reduce its holdings of the company's shares during the increase period and within the statutory period, and will strictly comply with the relevant regulations of the China Securities Regulatory Commission, the Shenzhen Stock Exchange and the Hong Kong Exchanges and Clearing Limited in implementing the shareholding increase plan. As at the date of this announcement, Zhenyun Investment holds approximately 171 million A shares of the company, representing approximately 36.20% of the company's current total share capital. The company's controlling shareholder group comprises Mr. Xiao Hongxing, Ms. Liu Jinqian, Zhenyun Investment, Shenzhen Guangcai Investment Enterprise (Limited Partnership) (Guangcai Investment) and Shenzhen Guangsheng Investment Enterprise (Limited Partnership) (Guangsheng Investment). Mr. Xiao Hongxing and Ms. Liu Jinqian are spouses, and both are directors of the company. Zhenyun Investment is 99.90% held by Mr. Xiao Hongxing. Guangcai Investment is a limited partnership established under the laws of China, whose general partner is Mr. Xiao Hongxing. Guangsheng Investment is a limited partnership established under the laws of China, whose general partner is Mr. Xiao Hongxing. As at the date of this announcement, according to Part XV of the Securities and Futures Ordinance, Mr. Xiao Hongxing, through the controlled corporations Zhenyun Investment, Guangcai Investment and Guangsheng Investment, collectively holds approximately 229 million A shares of the company, representing approximately 48.40% of the company's current total share capital; Ms. Liu Jinqian, as the spouse of Mr. Xiao Hongxing, is also deemed to hold such shares.