China Baoli Technologies to Raise HK$63.82 Million via 38% Share Placement

China Baoli Technologies Holdings Limited will issue 132.68 million new shares at HK$0.481 each to 20 private investors, generating gross proceeds of HK$63.82 million under a specific mandate. The price represents premiums of 4.57% to the 28 August 2026 closing price, 14.52% to the five-day average, and 10.57% to the latest practicable date quote.

The new shares equal 38.00% of China Baoli’s current issued share capital and 27.54% of the enlarged base. Post-issue, subscribers will collectively control 34.88% of the company, while public shareholders’ stake will decline to 64.61%. Directors will hold 0.51%. If all outstanding convertible bonds are eventually converted, subscriber ownership would ease to 33.99%, with public shareholding at 62.94%.

Net proceeds of about HK$60.30 million (net issue price: HK$0.454) are allocated as follows: • HK$17.00 million for head-office working capital, including HK$5.95 million for staff costs, HK$5.10 million for settling corporate liabilities, HK$1.36 million for statutory fees, HK$2.04 million for office expenses, and HK$2.55 million for professional services. • HK$3.00 million to advance the convergence media segment. • HK$40.30 million to accelerate Mongolia-based dry grinding and dry beneficiation (DGDB) mining projects—covering HK$15.30 million for processing equipment and fuel, HK$9.40 million for infrastructure upgrades, HK$6.40 million for staffing and overheads, HK$3.50 million for logistics, and HK$5.70 million for R&D and project evaluation.

Management cited limited availability of acceptable debt facilities and the uncertainty of rights issues or best-effort placings as key reasons for selecting a targeted share placement, which avoids interest costs and provides funding certainty.

Completion is conditional on shareholder approval at a special general meeting on 6 October 2026, Hong Kong stock exchange listing approval, and other customary conditions. The long-stop date is 30 November 2026. The new shares will rank pari passu with existing ordinary shares upon issue.