01683.HK announced that the Company and the previous placing Agent entered into a termination agreement on November 23, 2021, under which the previous placing Agreement will be terminated from November 23, 2021 and will no longer have any effect or effect. Neither party shall make any claim against the other party as a result of the termination of the previous placing agreement. After the termination of the previous placing agreement, the placement of convertible bonds will not take place. After the termination of the previous placing agreement, there is no urgent need to propose an increase in authorised share capital, so the proposed increase in authorised share capital will not take place.

On November 23, 2021, the company entered into a placing agreement with the placing agent, in which the company intends to place up to 120 million shares, equivalent to 20% of the existing issued share capital and about 16.67% of the issued share capital of the company as enlarged by the allotment, and the placing price is HK $0.10 per placing share, a discount of about 9.91% to the closing price of HK $0.111 per share on the date of the placing agreement.

The net proceeds from the placing are estimated to be approximately HK $11.73 million and the Company intends to use the net proceeds from the placing (I) HK $8 million to support the construction and ancillary services of the Group; and (ii) the remaining net proceeds from the placing will be used for the general working capital of the Group.

The Directors consider that the terms of the placing Agreement are fair and reasonable and that the placing will strengthen the Group's financial position, expand the company's shareholder base and be in the interests of the company and shareholders as a whole.