Xinming China (02699) plans to conduct a rights issue based on a "1 for 6" ratio, with a net fundraising amount of approximately HK$101 million.

XINMING CHINA (02699) announces that the company proposes to conduct a rights issue in 2026 at a subscription price of HK$0.188 per share, with a ratio of 6 rights shares for every 1 share held on the record date. The rights issue aims to raise up to approximately HK$106 million by issuing a maximum of 564 million new shares (assuming there is no change in the total number of issued shares from the date of this announcement to the record date). Upon meeting the conditions for the 2026 rights issue, regardless of the level of acceptance of the provisional allotment of rights shares, the rights issue will proceed on a non-underwritten basis. The rights issue will only be offered to eligible shareholders and not to ineligible shareholders. In the event of undersubscription for the rights issue in 2026, any rights shares not subscribed for, along with unsold rights shares of ineligible shareholders, will be made available for sale by the placing agent to the underwriter of the placing transactions. If any rights shares remain unsubscribed for or unsold by ineligible shareholders, the company will not issue them, and the size of the rights issue in 2026 will be reduced accordingly. There will be no additional application arrangements for the 2026 rights issue. Assuming there is no change in the total number of issued shares prior to the record date, the 564 million new rights shares to be issued in accordance with the terms of the 2026 rights issue will represent approximately 600% of the total number of issued shares, and approximately 85.71% of the total number of issued shares after the issue of the rights shares (assuming full acceptance by eligible shareholders). Eligible shareholders must fully subscribe for the rights shares at a subscription price of HK$0.188 per share when accepting the provisional allotment under the 2026 rights issue or applying to subscribe for the unsold rights shares allocated by the transferee of unpaid shares. The subscription price represents a discount of approximately 20.0% compared to the closing price of HK$0.235 per share on the last trading day on the Stock Exchange. If the 2026 rights issue is fully subscribed, it is estimated that the total proceeds and net proceeds after deducting related expenses will be approximately HK$106 million and HK$101 million, respectively. The net proceeds from the rights issue are intended to be utilized as follows: (i) Approximately 96.0% (around HK$74 million) will be used to repay convertible bonds, repay interest-bearing bank loans and other borrowings, and settle other payables and accrued expenses of the Group; (ii) Approximately 1.80% (around HK$1.8 million) will be used for the acquisition of property development projects in China with strong growth and value potential to diversify the Group's property portfolio and strengthen its future overall income and profitability; and (iii) Approximately 2.20% (around HK$2.2 million) will be used as general working capital for the Group, including but not limited to the Group's operating expenses for the 12 months following the completion of the 2026 rights issue. If the rights issue is undersubscribed, the net proceeds will be used proportionately for the above purposes.