Palinda Group Holdings Limited announced a three-step capital reorganisation, a change in trading lot size and a non-underwritten rights issue that could raise up to HK$4.77 million.

Key transaction details • Capital reorganisation – Share consolidation: every 50 existing shares (par HK$0.10) will be combined into one share (par HK$5.00). – Capital reduction: par value of each consolidated share will drop from HK$5.00 to HK$0.001, creating a HK$190.70 million credit to the distributable reserve. – Share sub-division: each authorised but unissued HK$5.00 share will be split into 5,000 new shares of HK$0.001 each.

• Post-reorganisation share structure – Authorised capital remains HK$1 billion, re-denominated into 1 trillion new shares (HK$0.001 each). – Issued shares will fall from 1,907.80 million to 38.16 million. – Issued share capital will reduce from HK$190.78 million to HK$38,156.

• Board-lot size change – Trading lot to shift from 12,000 existing shares to 5,000 new shares once the consolidation is effective. – At the last traded price of HK$0.01, current lot value is HK$120; post-consolidation lot value would be about HK$2,500.

Rights issue terms • Basis: one rights share for every two new shares held on the 13 October 2026 record date. • Subscription price: HK$0.25 per rights share, a 50% discount to the theoretical post-consolidation price of HK$0.50. • Maximum issue size: 19.08 million new shares, equal to 50.0% of current issued capital and 33.3% of enlarged capital. • Gross proceeds: up to HK$4.77 million; estimated net proceeds: HK$4.32 million. • Use of proceeds: about HK$2.50 million to repay an interest-free HK$2.50 million loan due within 30 business days after completion; balance of roughly HK$1.82 million for general working capital. • Non-underwritten: any unsubscribed rights shares will be placed by Grand Moore Capital under a best-effort arrangement; unplaced shares will not be issued.

Timetable highlights (subject to approvals) • EGM to approve capital reorganisation: 17 September 2026. • Capital reorganisation effective: 2 October 2026; first trading day of new shares. • Ex-rights date: 5 October 2026. • Rights trading: 16–26 October 2026. • Latest payment for rights shares: 29 October 2026. • Placing of unsubscribed shares ends: 9 November 2026. • Fully-paid rights shares commence trading: 19 November 2026.

Shareholder impact Chairlady and executive director Ms Huang Wei currently holds 26.16% (499.01 million shares). Assuming full subscription, her stake would remain unchanged at 26.16% of the enlarged 57.23 million shares. If no shareholders subscribe, issued shares will stay at 38.16 million, preserving existing percentage holdings.

Rationale Management cites the sub-HK$0.10 share price and low board-lot value as triggers for the consolidation, aiming to lift trading price, reduce transaction costs and increase market appeal. Par-value reduction is intended to facilitate future capital-raising flexibility. Proceeds from the rights issue will strengthen the balance-sheet via debt reduction and additional working capital.

Regulatory path The capital reorganisation requires shareholder approval and Stock Exchange clearance. The rights issue is not subject to shareholder approval but is conditional on the reorganisation becoming effective and the Stock Exchange granting listing of the rights shares.

Investors are advised that both the capital reorganisation and rights issue may or may not proceed, and should exercise caution when dealing in Palinda Group shares.