CHUANGLIAN HOLD (02371.HK): Use of subscription proceeds detailed

NewTimeSpace News: On 27 October 2026, Chuanglian Holdings Limited (stock code: 02371.HK) gave further details on the use of proceeds from the share subscription announced on 12 October 2026. At 30 June 2026, the Group had bank balances and cash of about RMB 95.8 million, of which RMB 91.9 million was in China and RMB 3.9 million in Hong Kong. Its Hong Kong operations need about HKD 20.0 million, equal to the net proceeds.

A dividend remittance from China would trigger 10% PRC withholding tax of about HKD 2.0 million, plus foreign exchange costs of 0.5% to 1% and compliance costs, bringing total direct costs to about HKD 2.1 million to HKD 2.2 million, or 10.5% to 11% of the sum. Subscription professional fees and expenses are expected below HKD 121,000, or about 0.6% of gross proceeds. The net proceeds of about HKD 20.0 million will fund general working capital, with 53% used within 12 months and 47% in months 12 to 24.