According to an announcement by Giant Group Holdings (01013), the company plans to implement the following capital restructuring, involving capital reduction and share subdivision: The company's issued capital will be reduced by cancelling paid-up capital (up to HKD 0.79 for each issued existing ordinary share), resulting in the par value of each issued existing ordinary share being reduced from HKD 0.8 to HKD 0.01; and immediately following the capital reduction, the authorized but unissued shares with a par value of HKD 0.8 (including those resulting from the capital reduction) will be subdivided into 80 shares with a par value of HKD 0.01 each.

The proposed capital restructuring will reduce the par value of shares from HKD 0.8 to HKD 0.01. After the capital restructuring takes effect, the amount generated from the capital reduction will be used to offset the accumulated losses of the company as of the effective date of the capital restructuring, thus reducing the company’s accumulated losses. Any remaining amount will be transferred to the company’s paid-in surplus account and will be utilized by the company in any manner allowed by all applicable laws and company regulations.

In addition, according to the Company Law, the issuance of shares by the Company at a price below face value is restricted. The capital reduction will lower the face value of the new shares to a lower level of HK$0.01 per share, allowing the Company to have greater flexibility in pricing for the issuance of any new shares in the future when needed.