CHINA HONGGUANG (08646) announced that the company entered into a share subscription agreement with a subscriber on January 21, 2026. The execution of the share subscription agreement will enable the company to further enhance its capital structure and strengthen the Group's financial position.

The company will allot and issue a total of 74 million subscription shares to the subscriber at the subscription price. The subscription shares represent approximately 9.45% of the company's issued share capital as enlarged by the allotment and issuance of the subscription shares.

The total nominal value of the subscription shares is HK$740,000. The subscription price of HK$0.15 per subscription share represents a discount of approximately 15.73% to the closing price of HK$0.178 per share as quoted on the Stock Exchange on the date of the share subscription agreement.

The total gross proceeds from the share subscription are expected to be approximately HK$11.10 million. The total net proceeds from the share subscription are estimated to be approximately HK$10.964 million.

The company intends to use the net proceeds from the share subscription for the Group's general working capital purposes.