Huayu Expressway Group Limited (1823) signed a Placing Agreement on February 11, 2026, with First Shanghai Securities Limited as the sole placing agent on a best effort basis. The agreement sets out the plan to place up to 58,500,000 new shares under a general mandate at a price of HK$0.88 per share.

According to the announcement, the 58,500,000 shares represent approximately 14.18% of the current issued share capital, and around 12.42% of the enlarged share capital upon completion. The placing price of HK$0.88 indicates a discount of about 19.27% to the last closing price of HK$1.09 and a discount of about 17.76% to the average closing price of HK$1.07 over the previous five consecutive trading days.

If fully placed, the gross proceeds are expected to be around HK$51.48 million, with net proceeds of approximately HK$50.56 million. The entire net proceeds are intended for general working capital, including staff salaries, rentals, professional fees, other administrative expenses, and sales, promotion, and marketing expenses.

Upon completion, Velocity International Limited’s stake—currently holding 72.71%—is expected to be diluted to about 63.68% of the enlarged share capital, while the placees would hold around 12.42%. The arrangement is aimed at strengthening the financial position and liquidity of Huayu Expressway Group Limited and broadening its shareholder base. Completion remains subject to certain conditions, including the Stock Exchange of Hong Kong’s listing approval and fulfillment of other terms detailed in the Placing Agreement.