PATEO Completes HK$114.10 Million H-Share Issuance to Accelerate AI R&D and Strengthen Working Capital

Bulletin Express05-06

PATEO CONNECT Technology (Shanghai) Corporation has finalised the placement of 895,980 new H shares at HK$127.35 each, raising gross proceeds of HK$114.10 million. The transaction closed on 6 May 2026 after all conditions in the subscription agreement were satisfied.

The new shares equal approximately 1.19% of PATEO’s issued H shares before the placement and 1.18% after enlargement. Total issued share capital now stands at 155,193,093 shares, split between 76,199,691 H shares (49.10%) and 78,993,402 domestic shares (50.90%). The company continues to meet Hong Kong’s public-float requirements.

Net proceeds of HK$113.61 million—equivalent to HK$126.80 per share after fees—will be deployed as follows:

• 60% (HK$68.17 million) earmarked for AI technology applications and product development, including: ‑ HK$27.27 million for AI computing platform research and AI Box solutions; ‑ HK$27.27 million for large-model deployment and AI Agent R&D; ‑ HK$13.63 million for frontier AI initiatives.

• 40% (HK$45.44 million) allocated to working capital and general corporate purposes: ‑ HK$19.09 million for talent recruitment and new-hire remuneration; ‑ HK$8.18 million for compensation of existing key staff; ‑ HK$7.27 million for IT infrastructure upgrades; ‑ HK$5.45 million for R&D centre and office rent; ‑ HK$5.45 million for routine operating expenses.

Management targets full utilisation of the proceeds by 31 December 2026, with a clear focus on expanding AI capabilities that have become critical to the group’s smart-cockpit and in-vehicle platform strategy.

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