WATER INDUSTRY (01129) announced that on February 16, 2026, the company entered into a subscription agreement with subscribers. These subscribers include Hua Niu International Limited, Digital Advisors Limited, Mingda Fuhui Limited, Wangde Consulting Limited, and Dongyi Industrial Limited. Under the 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 (subject to adjustment), the full exercise of the conversion rights would lead to the allotment and issuance of up to 903 million conversion shares. This represents approximately 142.90% of the total issued shares as of the announcement date. It also represents approximately 58.83% of the total issued share capital as enlarged by the issuance of the conversion shares upon the full conversion of the bonds, assuming no change in the company's issued share capital from the announcement date until the full conversion at the initial price.

The conversion shares have a par value of HK$0.1 per share, with a maximum total par value of HK$90.3409 million. After deducting related expenses, including professional fees, the estimated net proceeds from the proposed bond issue are approximately HK$278 million. The company plans to use the entire net proceeds to repay its IFC debt and other liabilities.

The net price per conversion share is approximately HK$0.307. This figure is calculated by dividing the total net proceeds by the maximum number of conversion shares available at the initial conversion price.