JISHENG GP HLDG (08133) announced that the board of directors has proposed a capital reorganization, which will include capital reduction, share subdivision, and creation of shares: The company will reduce its issued share capital by canceling HK$0.79 of the paid-up share capital for each issued share at that time, resulting in the par value of each issued share being reduced from HK$0.80 to HK$0.01. The credit arising from the capital reduction will be applied to set off the company's accumulated losses as at the effective date of the capital reduction, thereby reducing the company's accumulated losses. Immediately after the capital reduction becomes effective, each authorized but unissued existing share with a par value of HK$0.80 in the company's authorized share capital will be subdivided into 80 authorized but unissued adjusted shares with a par value of HK$0.01 each. Immediately after the capital reduction and share subdivision become effective, the company's authorized but unissued share capital will be increased by 3.0165 billion adjusted shares with a par value of HK$0.01 each.

The board of directors has proposed to change the board lot for trading from 2,000 shares to 8,000 shares per board lot. The board of directors has proposed to implement a rights issue after the capital reorganization and change in board lot become effective, on the basis that every 1 adjusted share held by eligible shareholders on the record date will entitle them to subscribe for 3 rights shares at a subscription price of HK$0.30 per rights share. Assuming that the total number of adjusted shares issued on or before the record date remains unchanged, and no adjusted shares (other than the rights shares) will be allotted and issued at or before completion of the rights issue, 115 million rights shares will be issued according to the terms. Assuming that the total number of adjusted shares issued on or before the record date remains unchanged and the rights shares are fully subscribed, the maximum gross proceeds from the rights issue are expected to be HK$34.3656 million, and the estimated net proceeds from the rights issue, after deducting related expenses, will be approximately HK$33 million.