Central China MT (09982) has announced that on June 18, 2026, the company entered into a subscription agreement with subscribers (Star Bliss Investment Limited and Regulus Culture Limited). Under this agreement, the subscribers have conditionally agreed to subscribe, and the company has conditionally agreed to allot and issue a total of 773 million subscription shares at a price of HK$0.09 per share.
The gross proceeds from the subscription are expected to be approximately HK$69.57 million. After deducting related expenses incurred by the company, the net proceeds are estimated to be HK$69.20 million, equivalent to a net subscription price of HK$0.09 per share.
The company has been actively monitoring structural opportunities within the industry and exploring collaborations with asset management companies and local distressed asset relief funds to leverage synergies. This strategy aims to provide comprehensive solutions for revitalizing distressed assets and troubled projects while developing specialized capabilities in distressed project management. Consequently, the subscription by Subscriber A is a strategic move designed to foster cooperation by combining the group's expertise in property construction agency services with Subscriber A's experience in the distressed asset sector and its deal-sourcing capabilities.
Through this potential strategic partnership, the group could gain enhanced access to opportunities in distressed projects across both China and Hong Kong, strengthening its ability to provide value-added restructuring and revitalization services. The funds raised from the subscription will support the group in expanding its distressed property construction agency business and investing in technological innovation to improve the efficiency and productivity of its property construction agency services.
Therefore, the investment from the subscription is expected to bolster the group's competitive position, diversify its revenue streams, and drive long-term sustainable growth. It also signifies the subscribers' confidence in the group's future development and prospects. The directors believe the subscription will strengthen the group's capital base, enhance its financial flexibility, and thereby support its business development. Furthermore, the subscription presents a valuable opportunity to further improve the group's overall financial condition.
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