HATCHER GROUP (08365) proposes to issue 12.8205 million consideration shares to acquire a 20% equity interest in Zhenheng Intelligent Limited

HATCHER GROUP (08365) announces that on September 14, 2026, the Company entered into an agreement with the seller, Mr. Ye Weilin, in respect of the acquisition. Pursuant to the agreement, the Company has conditionally agreed to acquire, and the seller has conditionally agreed to sell, the sale shares (representing a 20% equity interest in the target company, Zhenheng Intelligent Limited), at a consideration of HK$10 million, which will be paid by way of allotment and issue of 12,820,500 consideration shares at an issue price of HK$0.78 per consideration share. Upon completion, the target company will become an associate of the Company. The 12,820,500 consideration shares represent approximately 6.45% of the issued share capital of the Company as at the date of this announcement, and approximately 6.06% of the issued share capital of the Company as enlarged by the allotment and issue of the consideration shares. The issue price of HK$0.78 per share represents a premium of approximately 0.65% over: (i) the closing price of HK$0.775 per share as quoted on the Stock Exchange on September 14, 2026 (being the date of the agreement). The Company has been actively seeking development opportunities to diversify its business operations and sources of income. The Directors believe that the acquisition provides an opportunity for the Group to expand into the application of vertical AI in the professional financial services industry. The Board considers that AI is increasingly relevant to the professional services industry, particularly in respect of workflows involving substantial documentation, repetitiveness and rule-based processes. As at the date of this announcement, the target company has developed three AI engines for such workflows, namely Press AI, ESG AI and Accounting AI, which have been deployed in actual client work or pilot projects and are hosted in data centers controlled by the target company. Specifically, the Directors believe that the Group's industry expertise, client relationships and professional network will facilitate the application of the target company's AI engines, and that the Group is well positioned to introduce the target company's solutions to its existing clients and business partners facing similar documentation-heavy and compliance-driven workflows, thereby creating a potential customer base for the target company.