Zhejiang United Investment Holdings Group Ltd (ZJ United Inv; 08366) has unveiled a four-part recapitalisation package comprising a capital reorganisation, a board-lot change, a one-for-one rights issue and connected underwriting arrangements.

Capital reorganisation • 20-for-1 Share Consolidation: every 20 existing shares of HK$0.01 par value will convert into one consolidated share of HK$0.20. • Capital Reduction: par value of each consolidated share will be written down to HK$0.01; fractional entitlements cancelled. • Share Subdivision: unissued consolidated shares will be subdivided into adjusted shares of HK$0.01. • Post-reorganisation issued share capital will fall from 1,577.20 million to 78.86 million adjusted shares; authorised capital remains HK$20.00 million. A credit of about HK$14.98 million will help offset accumulated losses.

Board-lot size Trading lot will be cut from 10,000 existing shares to 5,000 adjusted shares, targeting a post-consolidation lot value above HK$1,000.

Rights issue – key terms • Basis: one rights share for every adjusted share held on record date. • Subscription price: HK$0.36, a 14.29% discount to the theoretical ex-rights price of HK$0.42. • Size: up to 78.86 million rights shares, raising gross proceeds of up to HK$28.39 million and net proceeds of roughly HK$26.00 million. • Use of proceeds: at least 60% (≈HK$18.20 million) to repay outstanding 12% debt of ~HK$19.29 million due to fellow subsidiary Emperor Prestige Credit; balance for general working capital.

Underwriting & shareholding impact Controlling shareholder Emperor Securities (50.22% pre-deal) has irrevocably undertaken to take up its full entitlement (39.60 million rights shares) and will underwrite up to 39.09 million untaken rights shares, capped so that its post-issue holding does not exceed 75%. – If fully subscribed, total shares rise to 157.72 million and Emperor Securities retains 50.22%. – If only Emperor Securities subscribes and no other shares are placed, its stake would reach 75.00%. Unsubscribed and non-qualifying rights will be placed by Emperor Securities as placing agent on a best-efforts basis; any premium above subscription price will be returned pro rata to non-participating shareholders.

Timetable & approvals • Circular dispatch: 28 Aug 2026; EGM: 14 Sep 2026. • Target effective date for capital reorganisation: 16 Nov 2026. • Record date for rights: 26 Nov 2026; nil-paid trading: 1–8 Dec 2026; final acceptance/payment: 11 Dec 2026. • New shares expected to list on 4 Jan 2027.

Conditions & risks The proposals require shareholder approval, court confirmation of the capital reduction, and Stock Exchange listing approval. The rights issue proceeds on a non-fully-underwritten basis; if conditions are unmet, the transactions may not proceed. Shareholders are cautioned that dealing in existing shares, adjusted shares or nil-paid rights carries corresponding risks.