China Carbon Neutrality (01372) plans to discount about 4.46% and issue 32 million shares to raise about HK$48 million

According to Zhitong Finance App, China Carbon Neutrality (01372) announced that on January 8, 2026, the company (as the issuer) and a subscriber signed a subscription agreement for a total of 32 million subscription shares (subscription price is HK$1.50 per share).

A total of 32 million subscribed shares each accounted for 4.98% of the Company's current issued share capital at the date of this announcement; and approximately 4.74% of the Company's issued share capital after being allocated and extended by issuing subscribed shares (assuming that from the date of this announcement until the date of completion, there is no change in the issued share capital of the Company other than the issuance of subscribed shares). The total face value of the subscribed shares will be HK$48 million.

The subscription price is HK$1.50 per share, which is approximately 4.46% off of HK$1.57 per share from the closing price of HK$1.57 per share as reported by the Stock Exchange on the date of the subscription agreement.

The Group is actively expanding its global carbon-neutral business. This business expansion requires an increase in capital scale to enhance the Group's profitability and development capabilities. After evaluating the viability of various financing options, the Company believes that this subscription will not incur interest costs or other expenses; that the subscription will ensure that the Company can obtain a certain amount of capital in the short term; and that issuing new shares at the expense of cash will improve the Company's financial situation, such as increasing working capital, reducing debt ratio, and improving overall resilience to risks. Furthermore, the subscription price and subscription quantity are determined by reference to the current and recent market price and trading volume of the shares. The board of directors believes that the subscription agreement is based on normal commercial terms, is fair and reasonable, and conforms to the overall interests of the Company and shareholders.

The total proceeds from the subscription will be HK$48 million. After deducting all applicable costs and expenses of the subscription, the net proceeds from the subscription will be approximately HK$48 million, and the net issue price of each subscribed share is HK$1.50. The Group intends to use the proceeds from the subscription for general working capital and business development capital; to improve the Group's financial situation.