DONGFANG ELEC (01072) announced that on September 18, 2025 (before trading hours), the company entered into a placement agreement with an exclusive placing agent. Under the agreement, the exclusive placing agent has conditionally agreed to act as the company's exclusive placing agent on a best efforts basis to procure not fewer than six placees (who, together with their ultimate beneficial owners, will be independent third parties) to purchase 68 million placing shares at a placing price of HK$15.92 per placing share, representing a discount of approximately 7.98% to the closing price of HK$17.30 per H share as quoted on the Hong Kong Stock Exchange on September 17, 2025 (being the last trading day).

Assuming no change in the number of issued shares from the date of this announcement to the completion date, the 68 million placing shares under the placement represent approximately 20.00% of the existing issued H shares and approximately 2.01% of the existing issued shares as of the announcement date, and approximately 16.67% of the issued H shares and approximately 1.97% of the issued shares as enlarged by the allotment and issuance of the placing shares.

Assuming all placing shares are fully placed and upon completion, the gross proceeds and net proceeds from the placement (after deducting placing commission and other related costs and expenses of the placement) are expected to be approximately HK$1.083 billion and HK$1.075 billion respectively. Accordingly, the net selling price per share will be approximately HK$15.81.