PAGODA GP (02411) announced that on September 19, 2025, the company entered into a placement agreement with a placing agent. Under the agreement, the company has agreed to issue, and the placing agent has agreed to act as the company's agent to procure placees on a best effort basis to subscribe for a total of 279.5 million placement shares at a placing price of HK$1.17 per H share, subject to the terms and conditions set out in the placement agreement.

Upon completion, the total 279.5 million placement shares will represent approximately 16.1% of the enlarged total number of H shares and approximately 15.4% of the enlarged total number of shares. The placing price of HK$1.17 per H share represents a discount of approximately 19.31% to the closing price per H share as quoted on the Stock Exchange on September 19, 2025.

Assuming the placing agent issues and fully places all 279.5 million placement shares under the placement, the gross proceeds from the placement are estimated to be approximately HK$327 million, while the net proceeds are estimated to be approximately HK$325 million.

The company intends to use the net proceeds for the following purposes: approximately 61.5% will be used to settle trade payables in the ordinary course of business; approximately 30.8% will be used to repay the company's bank loans; and approximately 7.7% will be used for the group's general working capital and administrative expenses.