BAIWANG CO (06657.HK): Issues 2.58m New H Shares to Celestine Capital, Netting HK$29.5m

NewTimeSpace News: On 26 October 2026, after trading hours, Baiwang Co., Ltd. (stock code: 6657) entered into a subscription agreement with Celestine Capital LP, under which the Company has conditionally agreed to allot and issue 2,581,312 new H shares at HK$11.622 per share, for an aggregate consideration of HK$30,000,008.064.

The subscription shares represent about 1.14% of the total issued shares as at the date of the announcement and about 1.13% of the enlarged issued shares immediately after completion; the number of issued shares will increase from 225,906,754 to 228,488,066. The subscriber is a limited partnership registered in the British Virgin Islands principally engaged in fund investment, whose general partner, Orion Crest Holdings Ltd, is wholly owned by Mr Jiang Yuze and whose entire partnership interest is held by Mr Bu Jianfeng. To the best of the directors' knowledge, the subscriber and its ultimate beneficial owners are independent third parties.

Gross proceeds are HK$30,000,008.064 and net proceeds are expected to be about HK$29.5 million after professional fees and related expenses. About 73.2% (some HK$21.6 million) will fund the AI agent all-in-one appliance business, including core hardware purchases (GPUs, high-speed storage modules, liquid-cooling systems and high-speed interconnect modules) and system integration and supply chain support, while about 26.8% (some HK$7.9 million) will fund computing power and hardware for the AI tax and finance model. The Company expects to fully utilise the proceeds by 31 December 2028.

The shares will be issued under the general mandate granted at the annual general meeting held on 26 June 2026, requiring no further shareholder approval; after completion, 42,600,038 shares will remain available under the mandate and the public float is expected to be about 47.77%. Completion is subject to fulfilment of conditions precedent and a long stop date of 31 January 2027, and may not proceed.