Quzhi Group (00917) shares tumbled dramatically during Hong Kong trading, nosediving more than 16% amid heavy selling pressure. At publication time, the stock had collapsed 16.42% to HK$107.4, while trading volume surged to HK$13.48 million. The sharp decline came after the innovative marketing firm unveiled plans for a discounted share placement. Quzhi intends to issue 3 million new shares, representing roughly 1.13% of its expanded share capital. Priced at HK$106.6 per share, the placement carries a steep 17.04% discount to its July 15 closing price of HK$128.5. Total proceeds are expected to reach approximately HK$320 million, with net funding estimated at HK$314 million after deductions. Half the capital will fuel domestic and overseas business expansion, while 10% targets research initiatives. The remaining 40% will strengthen the balance sheet through capital structure optimization and general corporate activities.