Linghang Pharmaceutical and Biotech (00399) announced two subscription agreements signed on July 15, 2025. Under Subscription Agreement A, subscriber Zhang Biaobing conditionally agreed to subscribe for 60 million shares at HK$0.312 per share. These Subscription A shares will be issued pursuant to the general mandate. Assuming no change in issued share capital between the announcement date and completion, Subscription A shares represent approximately 3.00% of the existing issued share capital and about 2.92% of the enlarged issued share capital post-issuance.

Concurrently under Subscription Agreement B, subscriber Chen Jing conditionally agreed to purchase 30 million shares at the identical price of HK$0.312 per share. Subscription B shares will likewise be allotted under the general mandate, constituting roughly 1.50% of current issued capital and 1.48% of the post-issuance enlarged capital.

The subscription price represents an approximately 20% discount to the HK$0.39 closing price per share on the Hong Kong Stock Exchange on July 15, 2025. Total gross proceeds from both subscriptions amount to HK$28.08 million, with net proceeds estimated at HK$27.78 million after deductions. These funds are earmarked for the group's general working capital requirements.

Directors consider the current market conditions favorable for strengthening the group's capital foundation and financial position. They deem the share issuance reasonable given the discount to market price, which resulted from arm's length negotiations with subscribers. This approach represents an appropriate method for raising additional capital.