Zhuguang Hold (01176.HK) opened high by 7.9% today (18th), reporting 0.178 yuan, and then rose to a high of 9.7% to 0.181 yuan. It is now reporting at 0.177 yuan, up 7.27%, with a turnover of 135 million shares, involving 23.9118 million yuan.

The company sells 1.625 billion shares to its controlling shareholder, Rong De Investment, accounting for approximately 18.36% of the expanded share capital, with a unit price of 0.2 yuan per share, a premium of approximately 21.21% over yesterday's (17th) closing price of 0.165 yuan per share. The total subscription price is 325 million yuan, which will be paid in the form of capitalization. Since the total subscription price will be settled in the form of capitalization upon completion, the company will not receive any cash proceeds from the issuance of subscription shares. After completion, Rong De Investment's shareholding in the company will increase from 54.81% to 63.11%.

The company believes that capitalization is the most effective and appropriate method to improve its financial position and working capital, and can enhance its capital base and reduce debt.