HONG WEI ASIA (08191.HK): Placing of 150m New Shares to Raise HK$12.83m

NewTimeSpace News: On 3 November 2026, Hong Wei (Asia) Holdings Company Limited (stock code: 08191) announced that it had entered into a placing agreement with Grand Elegance Capital Limited as placing agent to place up to 150,000,000 new shares at HK$0.09 per placing share, on a best-effort basis, to not less than six placees, each of whom and their ultimate beneficial owners are independent third parties.

The placing shares represent about 42.37% of the Company's existing issued share capital and about 29.76% of the issued share capital as enlarged by the placing. The placing price represents a discount of about 22.41% to the closing price of HK$0.116 on the date of the placing agreement and of about 16.51% to the average closing price of HK$0.1078 for the five consecutive trading days immediately preceding that date. The theoretical dilution effect is about 6.67%, and the cumulative theoretical dilution effect, aggregated with other rights issues and specific mandate placings announced in the preceding 12 months, is about 12.72%.

Assuming all placing shares are placed, gross proceeds will be up to about HK$13.5 million and net proceeds up to about HK$12.83 million, equal to a net price of about HK$0.0855 per share. The Company intends to apply about HK$5.05 million to repay bank borrowings, about HK$4.83 million to repay other borrowings including outstanding amounts under finance lease arrangements, about HK$1.84 million to settle overdue payables, and the remaining about HK$1.11 million for general working capital.

As at 30 June 2026, the Group had current assets of about HK$272.7 million, including bank balances and cash of only about HK$2.39 million, against current liabilities of about HK$187.5 million, including the current portion of bank and other borrowings of about HK$60.3 million due within twelve months, indicating material uncertainties that may cast significant doubt on its ability to continue as a going concern. Completion is subject to shareholders' approval at an extraordinary general meeting and the Stock Exchange's listing approval, with the circular expected to be despatched on or before 23 November 2026.