China Treasures New Materials Group Ltd. (the “Company”) has signed a placing agreement with Glory Sun Securities on 1 April 2026 to issue up to 200.00 million new shares under its existing general mandate. The transaction, conducted on a best-efforts basis to not fewer than six independent investors, is priced at HK$0.228 per share—20.00% below the 1 April closing price of HK$0.285 and 16.18% below the five-day average of HK$0.272.
If fully placed, the new shares will equal 20.00% of the Company’s current issued share capital and expand the enlarged base by 16.67% to 1.20 billion shares. Gross proceeds are expected to reach HK$45.60 million; after a fixed HK$0.20 million placing commission and related expenses, net proceeds are estimated at HK$45.40 million, implying a net price of HK$0.227 per share.
Use of funds has been earmarked as follows: • Procurement of production materials: HK$28.40 million (62.6%) • Research and development of new products: HK$10.00 million (22.0%) • Product promotion: HK$7.00 million (15.4%)
Post-placement, the largest shareholder Lvsetianye Technology will see its stake diluted from 32.11% to 26.76%, while public float (excluding the new placees) will fall from 47.68% to 39.74%. The placees will collectively hold 16.67% of the enlarged share capital. No individual placee is expected to become a substantial shareholder.
Listing approval for the new shares is required from the Stock Exchange; completion is scheduled for the third business day after all conditions are met. The Board states that the placement will broaden the shareholder base, enhance liquidity and provide additional working capital without requiring further shareholder approval, as it falls within the 20% general mandate granted at the June 2025 AGM.
The Group develops and manufactures biodegradable plastic products at its Changchun, Jilin production base in Mainland China. No other equity fund-raising activities have been conducted in the past 12 months.
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