Hong Kong, October 28, 2024 /Mainland Communications News/-- On October 23, Prime Technology (103.HK), a leading company in the manufacture of steel curtain wires in the Mainland, announced the completion of its “five-for-one” share offering plan to issue a total of 0.392 billion shares at a subscription price of HK$0.33 per share for a total net capital of HK$0.128 billion. The Company's IPO received a total of 108.49% overfunding, exceeding expectations, fully demonstrating the company's business prospects with high market recognition.

Upon completion of the offering, the total share capital of the company will increase from the original 1.96 billion to 2.35 billion at the closing price of HK$0.335 at the closing price on October 25, reaching a total market capitalization of HK$0.79 billion.

The company announcement showed that the primary purpose of this dividend was to strengthen the company's strength to optimize the capital structure and support the company's business development. In a period of rapid development, the company's ample funds provide ample ammunition for future strategic development to support accelerated implementation of various planning objectives, thereby improving overall performance and ultimately delivering solid returns to shareholders.

First of all, in terms of the change in the shareholding structure, the major shareholder, Prime Steel Group, remained unchanged at 44.91% and remained the company's largest shareholder. The new strategic shareholder Redamancy.Z Holdings Limited, through the continued subscription of the shares, increased further after the dividend, further reflecting confidence in the company's development, while also demonstrating its determination to further deepen the company's overseas business development and achieve maximum value integration.

Second, this fundraising further strengthens the company's capital strength and supports the company's strategic planning for the future. On the one hand, it helps the company to seize the rapidly developing domestic steel curtain line market opportunities, increase production capacity, increase the voice of the industry, and at the same time help to quickly implement the offshore strategy and increase its international market share; on the other hand, it helps the company to invest further in R&D to continuously improve its technical capacity and create new production Empowering enterprises to develop at high speed.

Currently under the common goal of global “carbon neutral”, the rapid development of new energy vehicles drives a significant increase in the market demand for matching tires, thereby driving the continued expansion of the domestic Mermaid tire curtain wire market. According to the Beiges Curtain Wire Market Research Report, China's Curtain Wire market size will reach 13.284 billion in 2023 Yuan Renminbi, Global Curtain Wire Market Size Reaches RMB 41.97 Billion, Forecast By 2029, Global Curtain Wire Market Size Will Reach RMB54.99 Billion, Real-Year Composite Growth Rate At 4.39%, in the face of continued market demand, the company is also steadily advancing capacity expansion plans to take full advantage of market demand growth opportunities. With a strong capital base, the company is expected to accelerate the implementation of the capacity expansion plan.

In addition, the wider overseas market offers enterprises great development opportunities compared to the domestic market in the domestic market. Market data show that China's auto exports continued strong momentum in 2024, with a cumulative vehicle export volume of 4.312 million vehicles in January to September, an increase of 27.3% yoy; a significant increase in overseas car production and sales volume drove the mermaid tire curtain line market to grow rapidly, and overseas sales operations are generally at a high level of profitability Domestic sales operations, abundant cash will help the company to quickly expand its overseas market, help to achieve a continuous increase in the company's business share in the future overseas revenue, while establishing a comprehensive global sales, logistics and service network. It is expected to significantly improve the overall performance of the company, giving the company a stronger competitive advantage.

At the same time, the company actively responded to the government's call for new productivity, persisted in technological innovation, continuously overcome the R&D and validation challenges of many new specification products over the past years, and won several technical awards, thereby continuously strengthening product competitiveness, and companies will continue to invest more resources in the R&D field in the future. By continuously improving the technical level, creating quality products, further realising the vitality and influence of the Curtain Line “Orient” brand.

In terms of the company's share price performance, the company's share price continued to climb at the end of April, gaining a significant cumulative increase of 48.9%, beating the same period on the stock market, showing that its strategic development and business prospects were also recognized by the market. The company's management said that the company will continue to improve through R&D and product innovation, while improving Production capacity, implementation of overseas expansion strategy, thereby further enhancing competitive advantage and profitability. In the future, it will firmly seize opportunities in domestic and international markets to expand its market share to become an industry enterprise with an annual production of more than 0.3 million tons of fine steel curtain wire This goal is progressing steadily.