Zhijing Finance App News, Ch Demeter Fin (08120) announced to propose a stock consolidation to combine every 10 shares with a par value of HKD0.01 each, issued and unissued, into 1 share with a par value of HKD0.10 after consolidation. The stock consolidation must be approved by the shareholders at an Extraordinary General Meeting before taking effect.

Following the effective date of the stock consolidation, the company's share capital will be decreased, including a reduction of issued shares in the following ways: by eliminating any fractional shares resulting from the consolidation in the company's issued shares and rounding down the total number of consolidated shares to the nearest integer; and by reducing the face value of each issued consolidated share from HKD0.10 to HKD0.01 through canceling paid-up capital (limited to HKD0.09 per share at the time of issuance).

There will be a stock split, whereby each statutory but unissued consolidated share (including statutory unissued shares arising from the reduction of capital) will be split into 10 shares with a par value of HKD0.01 each, resulting in the company's post-capital restructuring statutory capital of HKD1 billion, divided into 100 billion new shares.

After the capital restructuring, the proceeds of approximately HKD8.1313 million arising from the capital reduction will be credited to the contributed surplus account effective from the date of effect, for directors to utilize in any manner permitted by the Company Law and Company Regulations.

Existing shares are currently traded in board lots of 10,000 shares on the Hong Kong Stock Exchange. The Board of Directors proposes that post capital restructuring, the trading unit for new shares will be in board lots of 5,000 shares.