RONGZUN INT'L H (01780) has announced that its board of directors was informed by its executive director and major shareholder, Dr. Jin Zibo, that Kyosei Technology Inc. (the seller), held 28.05% by Dr. Jin Zibo and 65.45% by Mr. Yanase Kenichi, has entered into a placing agreement with Jietao Securities Co., Ltd. (the placing agent) on October 21, 2025. The placing agent has agreed to use its best efforts to facilitate investors (the placees) in purchasing up to 372 million existing shares of the company (the placing shares) at a price not less than HKD 0.446 per share. The placing period will commence from the date of the placing agreement and end on the earlier of: 5:00 PM on Tuesday, October 28, 2025; or upon the placing agent receiving subscription orders for a total of not less than 372 million placing shares from the placees; or any other time and/or date mutually agreed in writing by the seller and the placing agent. According to the placing agreement, the placing agent must use reasonable efforts to ensure that the placees and their ultimate beneficial owners are independent of the company and its connected persons (as defined in the Listing Rules) and are not acting in concert (as defined in the Hong Kong Code on Takeovers and Mergers (the Takeover Code)); and that none of the placees plus any persons acting in concert with them will immediately hold 30% or more of the total issued share capital of the company upon completion of the placing or trigger a mandatory general offer under Rule 26.1 of the Takeover Code for the shares of the company. As of the date of this announcement, the 372 million placing shares represent 60% of the company's existing issued share capital. Assuming all placing shares are successfully placed, upon completion of the placing, Kyosei Technology Inc.'s shareholding in RONGZUN INT'L H Group will decrease to 93 million shares, which is 15% of the total issued share capital of the company. Consequently, neither Dr. Jin Zibo, Mr. Yanase Kenichi, nor the seller will continue to be the controlling shareholders of the company. The company anticipates that the placing will not adversely affect its operations or those of its subsidiaries.