According to the Zhitong Finance App, Shifu Financial Services Group (00510) and Shifu Investment (01049) jointly announced that on June 14, 2023, Shifu Financial plans to place 50 million shares, accounting for about 11.60% of the expanded issued share capital of Shifu Financial. The placement price is HK$0.42 per placed share, which is approximately 3.70% premium over the closing price of HK$0.405 per share of Shifu Financial's shares on June 14.

Assuming that all 50 million shares of the placement are successfully distributed and distributed and issued by Shifu Financial, the total proceeds and net proceeds from the placement are estimated to be approximately HK$21 million and HK$20.5 million respectively. Shifu Financial intends to set aside all net proceeds from the placement as general working capital of Shifu Financial Group.

On the date of this joint announcement, Shifu Investment was the controlling shareholder of Shifu Financial. It held 278 million shares of Shifu Financial through CIGL (an indirect wholly-owned subsidiary of Shifu Investment), accounting for about 72.93% of Shifu Financial's total issued share capital. Assuming that all 50 million shares of the placement shares are successfully placed and distributed and issued by Shifu Finance, and that there is no other change in Shifu Financial's issued share capital from the date of this joint announcement to the completion date, after completion, Shifu's shares invested in Shifu Financial will be diluted from about 72.93% to about 64.47%, a decrease of about 8.46%.