Sanergy Group Ltd. Announces Plans to Allocate Remaining Listing and Rights Issue Proceeds for Production Facility Upgrades, Cost Reduction, and Support of Graphite Electrode Business Through 2026

Sanergy Group Ltd. has announced a further change in the use of net proceeds from its listing and rights issue. The company plans to direct capital expenditure toward optimizing and maintaining existing production facilities and equipment, with the aim of reducing production costs, mitigating operational risks, and enhancing profitability in 2026. Approximately HK$11.0 million from the rights issue will be allocated to the development and expansion of the graphite electrodes business and/or the GAM business, including upgrades to production facilities and investments in projects with strategic synergies. The remaining proceeds of HK$2.7 million from the listing and HK$11.0 million from the rights issue will also be applied to these capital initiatives. Additionally, the funds will support procurement of raw materials, payment for subcontracting and conversion costs, and other operating expenses to ensure fulfillment of expected customer orders in the first half of 2026. The board will continue to assess and may revise the plan for use of unutilised proceeds in response to changing market conditions.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Sanergy Group Ltd. published the original content used to generate this news brief via IIS, the Issuer Information Service operated by the Hong Kong Stock Exchange (HKex) (Ref. ID: HKEX-EPS-20251219-11962354), on December 19, 2025, and is solely responsible for the information contained therein.