According to a report from Zhitong Finance APP, LONGHUI INTL (01007) announced that on December 19, 2024, the seller, Ruize Group, signed a placement agreement with the placement agent and a subscription agreement with the company. According to the placement agreement, the placement agent agrees to place a maximum of 21 million existing shares on behalf of the seller to independent subscribers at a price of HKD 0.12 per placement share on a best efforts basis. According to the subscription agreement, the seller conditionally agrees to subscribe for new shares equal to the number of placement shares successfully placed by the placement agent at a price of HKD 0.12 per subscription share.

The price of HKD 0.12 per placement share represents a discount of approximately 11.11% compared to the closing price of HKD 0.135 per share on December 19, 2024.

The net proceeds from the subscription amount to approximately HKD 2.42 million (assuming all placement shares are successfully placed and all related expenses are deducted) and will be used as general working capital for the group.

In light of the current market conditions, the Directors believe that the placement and subscription represent a good opportunity to expand the company’s shareholder base and capital base, as well as to raise funds to meet its business needs. The Directors believe that the terms of the placement agreement and the subscription agreement are fair and reasonable, and in the overall interest of the group and the shareholders.