China Carbon Neutral Development Group (01372) has entered into a subscription agreement to issue 40 million new shares to a single investor, Dizhi Lucarbon Technology Investment Limited. The shares represent approximately 5.93% of the company's existing issued share capital and about 5.59% of the enlarged share capital following the issuance. The subscription price is set at HK$1.00 per share, which represents a discount of approximately 11.50% to the closing price of HK$1.130 per share on March 6, 2026. The net proceeds from the subscription are estimated to be approximately HK$40 million. The Group intends to allocate the funds as follows: approximately HK$32 million, or about 80% of the net proceeds, will be used to finance the expansion of the Group's business operations; the remaining HK$8 million, representing about 20% of the net proceeds, will be allocated for debt repayment to improve the company's financial position.