Polyfair Holdings Limited (Stock Code: 8532) has released an announcement detailing a proposed capital reorganisation and a change in board lot size. The capital reorganisation comprises three steps: a share consolidation, a capital reduction, and a share sub-division.

Under the share consolidation, every 10 issued and unissued Existing Shares of par value HK$0.01 will be consolidated into 1 Consolidated Share of par value HK$0.1. For reference, the authorised share capital before the consolidation is HK$50,000,000 divided into 5,000,000,000 Existing Shares, of which 848,744,000 shares have been issued and fully paid. Immediately upon the share consolidation taking effect, the company’s authorised share capital will become HK$50,000,000 divided into 500,000,000 Consolidated Shares, assuming no change in the current number of shares in issue.

In the subsequent capital reduction, any fractional Consolidated Shares will be cancelled, and paid-up capital of HK$0.099 on each Consolidated Share will be cancelled, reducing the par value from HK$0.1 to HK$0.001. The resulting credit of approximately HK$8,402,565.60 will be credited to the company’s distributable reserve account for permitted uses.

Following the capital reduction, each authorised but unissued Consolidated Share of HK$0.1 will be sub-divided into 100 New Shares of HK$0.001. Subject to relevant court and shareholder approvals, 84,874,400 New Shares of HK$0.001 each are expected to be in issue based on the current share structure.

Conditional upon completion of the share consolidation, the board lot size for trading on the Stock Exchange is set to change from 8,000 Existing Shares to 16,000 Consolidated Shares. Based on the closing price of HK$0.022 per Existing Share on the announcement date, the estimated market value of 16,000 Consolidated Shares would be HK$3,520.00.

The proposals are subject to shareholder approval at an extraordinary general meeting (EGM) scheduled on Wednesday, 14 January 2026, and to subsequent confirmation by the Grand Court of the Cayman Islands. Final details, including arrangements for exchanging share certificates and the precise effective dates, will be announced after court confirmation and fulfillment of all conditions. Shareholders and potential investors are advised to exercise caution when dealing in the company’s securities and to consult professional advisers if in doubt.