WATER INDUSTRY Group (01129) has announced that on February 16, 2026, the company entered into a subscription agreement with several subscribers. The subscribers include Hua Niu International Limited, Digital Advisors Limited, Mingda Fuhui Limited, Wonder Consulting Limited, and Dongyi Industrial Limited. Under this agreement, the company has conditionally agreed to issue, and the subscribers have conditionally agreed to subscribe for, convertible bonds with a total principal amount of HK$278 million, equivalent to approximately RMB 250 million.

Based on an initial conversion price of HK$0.308 per share, which is subject to adjustment, the full exercise of the conversion rights would lead to the allotment and issuance of up to 903 million new shares. This number represents approximately 142.90% of the total number of issued shares as of the date of the announcement. It also accounts for about 58.83% of the total issued share capital following the full conversion of the bonds, assuming no other changes to the company's share capital from the announcement date until the conversion is complete. The total maximum par value of the new shares, each with a face value of HK$0.10, would be HK$90.3409 million.

After deducting related expenses, including professional fees, the estimated net proceeds from the proposed bond issuance are approximately HK$278 million. The company plans to use the entire net proceeds to repay debt owed to the International Finance Corporation (IFC) and to settle other existing liabilities. The net price per conversion share is calculated to be approximately HK$0.307, derived by dividing the total net proceeds by the maximum number of shares issuable upon conversion.