IMAGI INT'L (00585) announced that on March 17, 2025, the Subscriber, an indirect non-wholly-owned subsidiary of the Company, participated in the HCL rights issue. The Subscriber subscribed for 180 HCL rights shares at the ratio of one rights share for every two existing shares held, with a total subscription price of HKD 50.76 million. The consideration for the subscription was settled in cash by the Subscriber.

Following completion, the Subscriber holds 540 HCL shares. This maintains the Group's shareholding percentage in HCL unchanged at approximately 25.35% of HCL's enlarged share capital, both before and after the transaction. HCL continues to be classified as an investment in an equity instrument designated at fair value through other comprehensive income.

As integrated financial services represent a core business of the Company, significant resources have been allocated to its development and expansion. The investment in HCL is a strategic initiative aimed at enhancing the Group's competitiveness. The Subscriber's participation in the rights issue was crucial for maintaining its proportional stake in HCL and preventing shareholding dilution.

The HCL rights issue was fully subscribed by all of its shareholders. The subscription proceeds received by HCL from its shareholders will strengthen HCL's capital base and enable it to seize more business opportunities, including potential acquisitions of assets or equity stakes when favorable opportunities arise. As a significant shareholder of HCL, the Subscriber stands to benefit from HCL's potential capital appreciation and improved financial condition.

The Group remains committed to focusing on the development and expansion of its integrated financial services. The investment in HCL aligns with the Group's strategy to broaden its coverage within the financial services industry by forming strategic alliances with other local financial services companies. The Company believes that participating in the HCL rights issue allows it to: avoid dilution of its stake in HCL; directly benefit from the economic advantages resulting from improvements in HCL's business; and gain strategic advantages through its alliance with HCL.