ZHENGWEI GROUP (02147): Rights Issue Receives Valid Acceptances of Approximately 36.13%, Net Proceeds of Approximately HK$160 Million

ZHENGWEI GROUP (02147) announces that as at 4:00 p.m. on Monday, October 5, 2026 (being the latest time for acceptance), a total of 9 valid acceptances were received, involving an aggregate of 146 million rights shares, representing approximately 36.13% of the total number of rights shares offered under the rights issue. Accordingly, the rights issue was under-subscribed, with 258 million rights shares not subscribed for, representing approximately 63.87% of the total number of shares offered, and such shares will be subject to the compensation arrangement. The Company has made the compensation arrangement pursuant to Rule 7.21(1)(b) of the Listing Rules by entering into a placing agreement with the placing agent, pursuant to which the Company has appointed the placing agent, and the placing agent has agreed to act as the Company's placing agent to use its best endeavours to procure the placing of the unsubscribed rights shares and the unsold rights shares of the ineligible shareholders to independent placees during the placing period. As at 6:00 p.m. on Wednesday, October 28, 2026 (being the latest time for the placing agent to place the placing shares), 258 million unsubscribed rights shares were successfully placed under the placing to not less than six (6) placees at a price of HK$0.4 per share (equivalent to the subscription price). Accordingly, there was no net proceeds available for distribution to the non-acting shareholders. All conditions in respect of the rights issue and the placing as set out in the rights issue prospectus have been fulfilled, and the rights issue and the placing became unconditional at 4:00 p.m. on Thursday, October 29, 2026. Based on the results of the acceptances of the rights issue and the results of the placing, 403 million rights shares will be allotted and issued, representing 100% of the total number of rights shares available for subscription under the rights issue. The gross proceeds from the rights issue are approximately HK$161 million, and the net proceeds from the rights issue (after deducting the relevant expenses) are approximately HK$160 million. As disclosed in the rights issue prospectus, the Company intends to apply 100% of the net proceeds from the rights issue to repay the Group's bank borrowings.