Xinming China Holdings Limited (2699) plans a 2026 Rights Issue on the basis of six new shares for every one share held at HK$0.188 per Rights Share. The maximum number of Rights Shares is 563.59 million, representing up to HK$106.00 million before expenses and about HK$101.40 million in estimated net proceeds. The company intends to allocate approximately 96% of the net proceeds (around HK$97.40 million) to settle convertible bonds, repay interest-bearing borrowings, and meet other payables. About 1.80% (approximately HK$1.80 million) is earmarked for acquiring property development projects in the PRC, while about 2.20% (approximately HK$2.20 million) will serve as general working capital.

The subscription price represents around a 20.00% discount to the HK$0.235 closing price of the shares on the last trading day before the announcement. The company notes the Rights Issue will proceed on a non-underwritten basis, with any unsubscribed portion and the portion for non-qualifying shareholders to be placed via an independent placing agent. If the conditions, including shareholders’ approval at an extraordinary general meeting, are met, the subscription is scheduled to open in May 2026.

If fully subscribed, the total number of shares would increase to 657.52 million, up from 93.93 million currently. Shareholders who do not participate in the subscription will face a dilution of their holdings. The company emphasizes that the 2026 Rights Issue remains subject to various regulatory approvals, and there is no certainty it will proceed unless the final conditions are fulfilled.