Chuanglian Holdings Limited (Stock Code: 2371) announced several proposals subject to shareholder approval, aiming to streamline share structure and raise funds for its financial services segment.

The board first proposes a 10-to-1 share consolidation, converting every ten existing shares (HK$0.01 par value) into one consolidated share (HK$0.1 par value). Assuming no other changes, the maximum number of consolidated shares in issue would be 675,221,057. Concurrently, the company intends to adjust the board lot size from 4,000 existing shares to 8,000 consolidated shares.

In addition, Chuanglian Holdings plans to issue 94,736,841 new consolidated shares at HK$0.38 each under specific mandate. The estimated gross proceeds are HK$36 million, with a net of approximately HK$35.5 million. The majority of these proceeds would be allocated to expanding the group’s financial services in the digital assets segment in Hong Kong, while the remainder is slated for general working capital.

The company further proposes converting HK$5 million of shareholder loans into 13,157,893 new consolidated shares at HK$0.38 each. This loan settlement reduces indebtedness while preserving cash on hand for operations.

All these proposals—share consolidation, board lot size change, subscription of new shares, and debt capitalization—are subject to conditions including approval from shareholders at an extraordinary general meeting and relevant regulatory clearances. The company cautions that these initiatives may or may not proceed and advises investors to exercise care when dealing in its shares.