On June 17th, Gelunhui reported that Duo Xiangyun (06696.HK) signed two subscription agreements with two subscribers for a total of 160 million shares of subscribed shares (at a subscription price of HKD 0.25 per share) as the issuer on June 15, 2024. Subscriber A (Ying Foundation Independent Portfolio Company) is an independent private equity fund company, and subscriber B (Wang Wenwen) is a group employee. The issuance of shares does not require the approval of shareholders, and the subscribed shares will be issued according to the general authorization granted by the shareholders' annual meeting to the board of directors.

The total of 160 million shares of subscribed shares represents: (i) approximately 13.33% of the company's existing issued share capital as of the date of this announcement; and (ii) approximately 11.76% of the company's issued share capital after expanding the share capital by issuing the subscribed shares through placement and issuance. The subscription price is HKD 0.25 per share, which represents a discount of approximately 1.96% compared to the closing price of HKD 0.255 per share as quoted on the Stock Exchange on the last trading day immediately preceding the date of the subscription agreement.

The total amount of funds raised by the subscription is HKD 40 million. The net amount of funds raised by the subscription (after deducting all relevant subscription costs and expenses) is approximately HKD 39.9 million, and the net issue price per share of subscribed shares is approximately HKD 0.249. The group intends to use the funds raised by the subscription for: (i) purchasing media resources from Douyin (especially its online traffic) for the group's clients to advertise through the new Douyin distribution channel (referred to as the "Douyin Distribution Channel" below) and promoting the Douyin Distribution Channel; and (ii) general working capital.