IMPRO PRECISION (01286) announced that on May 27, 2026, the Company, the Vendor, and the Placing Agent entered into a Placing and Subscription Agreement. Under the agreement: (i) the Vendor has agreed to sell, and the Placing Agent has agreed, acting as agent for the Vendor on a best-efforts basis, to procure not fewer than six placees to subscribe for up to 60 million Placing Shares at the Placing Price; and (ii) the Company has agreed to issue, and the Vendor has agreed to subscribe for, up to 60 million Subscription Shares at the Subscription Price (equal in number to the Placing Shares sold by the Vendor under the Placing).

The Placing Shares comprise up to 60 million shares, representing approximately (i) 3.18% of the total issued share capital as of the date of this announcement; and (ii) 3.08% of the enlarged issued share capital upon completion of the Subscription (assuming no change in the total issued share capital from the date of this announcement to the completion of the Subscription, except for the issuance of the Subscription Shares by the Company).

The Placing Price is HK$9.10 per share, representing a discount of approximately 13.58% to the closing price of HK$10.53 per share as quoted on The Stock Exchange of Hong Kong Limited on the last trading day. The number of Subscription Shares represents approximately (i) 3.18% of the total issued share capital as of the date of this announcement; and (ii) 3.08% of the enlarged issued share capital upon completion of the Subscription (assuming no other changes in the total issued share capital from the date of this announcement to the completion of the Subscription, except for the issuance of the Subscription Shares by the Company).

The gross proceeds from the Subscription are expected to be approximately HK$546 million. The net proceeds from the Subscription are expected to be approximately HK$539 million (after deducting all fees, costs, and expenses properly incurred by the Vendor in relation to the Placing and Subscription that are borne by the Company, including but not limited to the Placing Agent's commission (fixed and discretionary, if any), stamp duty, SEHK trading fee, and SFC transaction levy, as well as other expenses incurred by the Company in relation to the Placing and Subscription). The net subscription price per Subscription Share (after deducting such fees, costs, and expenses) is expected to be approximately HK$8.98.

The Company currently intends to use the net proceeds from the Subscription for: (i) capital expenditure at its factories in Mexico and China to meet growing demand, particularly in end-markets related to artificial intelligence data centers; (ii) expanding future production capacity and process categories, and making forward-looking preparations for the long-term sustainable development of the aerospace sector; and (iii) repaying bank borrowings, general working capital, and general corporate purposes. The specific allocation of the proceeds may be adjusted by the Board and its authorized persons based on the operational circumstances and actual needs of the Company or the Group, and in consideration of any relevant opinions received from applicable regulatory authorities.