China Strategic Technology Group Limited (abbreviated as C Strategic Tec) has signed a placing agreement with Solo Securities Limited to issue up to 163.68 million new shares at HK$0.30 apiece.
Key terms • Size & dilution: The new shares equal 20.00% of current issued share capital and 16.67% of the enlarged total. • Pricing: The placing price is set at a 9.09% discount to the 18 August 2026 closing price of HK$0.330, yet 4.17% above the five-day average of HK$0.288. • Proceeds: Gross proceeds will be approximately HK$49.10 million; net proceeds, after 1% placing commission and related expenses, are estimated at HK$48.58 million. • Mandate: Shares will be issued under the company’s existing general mandate granted at the 22 May 2026 AGM, eliminating the need for further shareholder approval. • Conditions & timing: Completion hinges on Stock Exchange listing approval and other consents, with a long-stop date of 8 September 2026. The placing is on a best-effort basis and may not proceed if conditions are unmet.
Use of proceeds 1. HK$20.00 million will fund investments to extend the precision manufacturing segment upstream into advanced material processing, reinforcing vertical integration. 2. Up to HK$28.58 million will serve as general working capital, covering items such as salaries, rentals, professional fees and other overheads. The company expects full utilisation of these funds by end-2026.
Post-placement shareholding (illustrative) • Public placees: 16.67% (163.68 million shares) • Hong Kong Aerospace Technology Holdings: 7.98% • Vision International Group: 2.10% • Ren Yue: 10.18% • Other public shareholders: 63.07% Total shares will rise from 818.41 million to 982.09 million.
Strategic context C Strategic Tec operates across aerospace materials and satellite components, precision manufacturing (EMS, PCBA, sensors), and is expanding into new-energy vessels and biotechnology. Management views the placement as essential to fund immediate working-capital needs and support upstream integration within its precision manufacturing arm, enhancing synergies across aerospace, energy and high-end manufacturing operations.
Recent capital market activity Over the past 12 months the company raised HK$64.50 million (July–Aug 2025) and HK$117.84 million (Dec 2025–Apr 2026) via share subscriptions and placements; those funds have been fully utilised for working capital and shareholder-loan repayment.
Investors are reminded that completion of the current placing remains conditional and may not ultimately proceed.