Junwea Group (China) Company Limited on 15 June 2026 signed a placing agreement with Yellow River Securities Limited to issue up to 74.88 million new shares at HK$0.434 per share. The mandate uses the Company’s existing 20% general mandate approved at the 30 June 2025 AGM, enabling execution without further shareholder approval.

Pricing and dilution • The placing price represents a 13.2% discount to the 15 June closing price of HK$0.50 and a 19.03% discount to the five-day average of HK$0.536. • The new shares equal 14.60% of the current 512.72 million shares in issue and will expand the share base to 587.60 million, diluting existing holders to that extent.

Proceeds and allocation • Maximum gross proceeds: HK$32.50 million; estimated net proceeds: HK$32.00 million (net issue price: HK$0.427). • Use of funds: 70% (around HK$22.40 million) earmarked for two potential new wet-trade projects; 30% (about HK$9.60 million) for general working capital.

Transaction terms • Placement will be conducted on a best-effort basis to at least six independent investors; no placee is expected to become a substantial shareholder. • Yellow River Securities will receive a 1% placing commission. • Completion hinges on the Stock Exchange granting listing approval; long-stop date is 31 July 2026. The agreement allows rescission by the placing agent under specified adverse conditions.

Impact on ownership • Major shareholder China Alliance Venture Technology Limited (beneficially owned by Chairman and Executive Director Mr Zhou Zhenlin) will see its stake fall from 61.47% to 53.63% post-placement. • Public float would rise from 38.17% to 45.76%, with new placees holding 12.74%.

Liquidity and recent capital moves • As at 31 December 2025, the Group held HK$31.10 million in bank balances. • In June 2025, the Company raised HK$14.10 million net via a 62.40 million-share placement at HK$0.241 each; proceeds have been fully utilised. • In November 2025, 112.32 million shares were subscribed at HK$0.3965 each by China Alliance Venture Technology Limited under a specific mandate.

Investor considerations Completion is not assured; shareholders are advised to exercise caution when dealing in Junwea Group shares until listing approval for the new shares is secured.