DIRECTEL (08337.HK): Proposes Capital Reduction and Subdivision of Unissued Shares, Reducing Par Value from HKD 0.20 to HKD 0.01 per Share

NewTimeSpace News: On 21 August 2026, Directel Telecom Holdings Limited (08337.HK) issued a circular proposing a capital reduction by cancelling paid-up capital to the extent of HKD 0.19 per issued ordinary share, thereby reducing the par value of each issued ordinary share from HKD 0.20 to HKD 0.01 per share, such that each issued new ordinary share has a par value of HKD 0.01; immediately following the capital reduction taking effect, each authorised but unissued ordinary share with a par value of HKD 0.20 will be subdivided into 20 authorised but unissued new ordinary shares with a par value of HKD 0.01 each.

As at the latest practicable date, the company's authorised share capital is HKD 100,000,000 divided into 500,000,000 ordinary shares, of which 244,875,000 shares have been issued. After the capital reduction, issued share capital will decrease from HKD 48,975,000 by HKD 46,526,250 to HKD 2,448,750; after the subdivision, the number of authorised shares will become 10,000,000,000 new ordinary shares. The credit arising from the capital reduction will be transferred to the capital reduction reserve account, which may be applied to set off accumulated losses (currently no such intention; if applied, accumulated losses of approximately HKD 94,259,000 would be reduced to approximately HKD 47,733,000) or for future dividend distributions.

The directors consider that the capital reduction and subdivision will allow the company greater flexibility in issuing new shares and declaring dividends in the future, although there is no assurance that any dividends will be paid or new ordinary shares issued in the future, and debt or equity fundraisings are not ruled out. Professional fees and other expenses of approximately HKD 350,000 will be or have been incurred. Implementation is conditional upon shareholders' approval by special resolution at the EGM, the directors signing a solvency declaration, registration with the Registrar of Companies in the Cayman Islands, approval of listing of the new ordinary shares by the Listing Committee, and compliance with relevant procedures. The EGM is scheduled for 11 September 2026 at 10:00 a.m. (Hong Kong time) at Rooms 1, 2, 14 and 15, 37/F, Hong Kong Commercial Centre, 188 Connaught Road West, Hong Kong.

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