CHINA WACAN (01920) announced a proposal to increase its authorized share capital to enhance fundraising flexibility and support future business growth. The newly issued shares will carry the same rights as existing shares in all respects. The board believes the capital increase aligns with the company's and shareholders' overall interests.

As of the announcement date, the company's authorized share capital stands at HKD 40 million, divided into 400 million shares, with 374.4 million shares issued. Upon approval of the capital increase—assuming no further share issuance or buybacks occur before the extraordinary general meeting (EGM)—the authorized capital will rise to HKD 120 million, comprising 1.2 billion shares. Of these, 374.4 million will remain issued, while 825.6 million will be authorized but unissued.

The proposal requires shareholder approval via an ordinary resolution at the EGM. Additionally, revisions to Chapter 17 of the Listing Rules effective January 1, 2023, impact share option and incentive schemes. These changes necessitate significant amendments to the 2019 Share Option Scheme. Consequently, the company plans to terminate the 2019 scheme upon adopting a new share plan, pending EGM approval.