CROWNICORP (00727) announced that its board has proposed a rights issue on the basis of "1-for-3" to issue up to approximately 954 million rights shares (assuming no change in the number of issued shares before the record date). The subscription price is set at HK$0.65 per share, representing a discount of approximately 19.75% to the closing price of HK$0.81 per share on the last trading day on the Hong Kong Stock Exchange.

Assuming full subscription, the net proceeds are expected to be around HK$618 million, which will be entirely allocated to the development of a land parcel. The land, located at Gangcheng Road in Qianhai New District, Shenzhen, Guangdong Province, China, covers a total area of approximately 8,720 square meters. The group acquired the land from an independent third party on August 20, 2025, for RMB 85 million.

CROWNICORP plans to develop the land into two residential towers, comprising residential units with a total gross floor area of about 71,000 square meters. The total estimated development cost for the project is approximately RMB 1.6 billion. The company has negotiated with a construction firm and will pay an initial construction cost of no more than RMB 600 million, with the remaining balance to be settled after property sales.