According to the Zhitong Finance App, China Hongguang (08646) announced that on May 17, 2022, the company plans to issue 99 million subscription shares to Bright Global, accounting for about 24.81% of the expanded share capital; each subscribed share was HK$0.4, a discount of about 13.04% from the closing price of HK$0.46 for the day.

Net proceeds from share subscription transactions amounted to approximately HK$39.25 million, 60% of which was used to maintain and operate the existing business (including purchasing raw materials, upgrading and purchasing production equipment to improve efficiency and quality, and repayment of loans); 30% was used for potential acquisitions and new business development; and 10% was used as the group's general working capital.

As of the date of this announcement, Bright Global held approximately 50.25% of the company's issued share capital. Immediately after completion, Bright Global's shares in the company increased to 62.59%.