According to the Zhitong Finance App, Zi Yuanyuan (08223) announced that on December 12, 2023, the company entered into a placement agreement with the placement agent. The company has agreed to place up to 40 million placement shares through the placement agent at a placement price of HK$1.11 per share to no less than six undertakers (they and their ultimate beneficial owners shall be independent third parties) according to best practices.

The placement price of HK$1.11 per placed share is approximately 13.28% off the closing price of the shares reported on the Stock Exchange on the last trading day at HK$1.28 per share; the maximum number of placed shares is equivalent to about 9.09% of the company's issued share capital increased by allotment and issuance of placed shares.

According to the announcement, assuming the largest number of placed shares are placed under the placement agreement, the net proceeds from the placement will be approximately HK$42.7 million (after deducting commissions and other placement expenses). The directors intend to use the net proceeds from the placement for the Group's working capital, including the plan to use 20-30% of the net proceeds to cover ongoing administrative and operating expenses and 70-80% of the net proceeds to develop the Group's financial leasing business and medical device and consumables trading business.