Daido Group Limited announced that it has entered into a Subscription Agreement with Victoria Sight Capital Group Ltd. after market hours on 29 July 2026. Under the terms, Daido will issue 10.00 million new shares at HK$1.00 each, representing a 33.33% premium to the same-day closing price of HK$0.75 and an 18.20% premium to the five-day average of HK$0.85.

The new shares equal approximately 19.76% of Daido’s existing issued share capital and 16.50% of the enlarged base of 60.62 million shares. Gross and net proceeds are both estimated at HK$10.00 million, earmarked for general working-capital needs—primarily staff costs, office and premises rentals, and other administrative expenses—with utilisation targeted by end-December 2026.

Issuance will be executed under the General Mandate granted on 30 June 2026, consuming about 98.78% of the remaining capacity and therefore not requiring additional shareholder approval. Completion is conditional on standard regulatory clearances, including Hong Kong Stock Exchange approval for listing and dealing in the new shares, and must occur within one month of signing unless extended by mutual agreement.

Post-issuance, Victoria Sight Capital will hold 16.50% of Daido, while existing shareholders’ aggregate stake will dilute from 88.54% to 83.50%. Should all outstanding HK$45.00 million in convertible bonds be fully converted, Daido’s share count would rise to 154.35 million, reducing the Subscriber’s interest to 6.48% and allocating 60.73% to the bondholders.

The current share placement follows two recent capital-raising exercises: a HK$19.72 million specific-mandate share subscription completed in December 2025 and an HK$11.40 million general-mandate subscription completed in April 2026, both of which have been fully deployed for debt repayment and working capital purposes.

Daido views the latest subscription as a means to bolster liquidity and strengthen its balance-sheet position without incurring additional borrowing costs. Completion remains subject to the satisfaction of customary conditions precedent; investors are advised to note that the transaction may not ultimately proceed.