DEEPEXI TECH (01384) has announced the fulfillment of all conditions under the placement agreement, with the placement completed on May 28, 2026. A total of 7.942 million new H shares, representing approximately 2.374% of the total issued share capital as enlarged by the allotment and issue of the placement shares, were successfully placed to no fewer than six placees at the placement price of HKD 50.58 per H share pursuant to the terms of the agreement.
As of April 30, 2026, the net proceeds of RMB 442 million from the global offering remain unutilized. These funds will continue to be deployed progressively according to the intended use and expected timetable disclosed in the prospectus, primarily for enhancing R&D capabilities, expanding the company's sales network and customer base in China, overseas business expansion, potential investments and acquisition opportunities, and working capital and general corporate purposes over the five years following listing. Therefore, this placement does not serve as a substitute for the planned use of the global offering proceeds.
The board believes that, considering the company's current business development needs and its subsequent strategic layout—particularly the new and accelerated demands for overseas market expansion and localization capability building—it is necessary to supplement capital in a timely manner to seize business development opportunities and enhance execution flexibility.
According to the prospectus, approximately 15% of the global offering proceeds are intended for overseas business expansion, focusing on consolidating the company's position in the Hong Kong market and expanding in a structured manner into markets such as Southeast Asia and the Middle East, alongside overseas marketing and local team development. In contrast, the net proceeds from this placement will be used primarily to supplement and expedite the further deepening of overseas market development, customer coverage, and localized service capability building under the aforementioned expansion plan. These funds will not replace the global offering proceeds already allocated for related purposes.
Specifically, the placement proceeds will be used mainly to: evaluate and selectively expand into other overseas markets with commercial potential (including regions such as Europe) based on the existing footholds in key markets like Southeast Asia and the Middle East; conduct ongoing marketing, customer acquisition, and brand building in target overseas markets; and establish and expand overseas teams for pre-sales consulting, project implementation, technical support, and after-sales service. Furthermore, necessary localization adjustments will be made to the group's existing products and solutions based on the industry characteristics, customer business processes, local languages, and applicable regulatory requirements of the target markets.
Additionally, a portion of the placement proceeds will be used to prudently seek strategic investment and acquisition opportunities synergistic with the group's main business and overseas expansion plan. These opportunities will primarily focus on targets that can supplement the group's overseas channel resources, localized delivery capabilities, regional customer coverage, or complement its existing product and technology platforms. The remaining net proceeds will be allocated for working capital and general corporate purposes.
The board is of the view that this placement will help the company strengthen its financial flexibility to more effectively capture market opportunities arising from new business demands and subsequent business expansion.
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