Gelonghui, December 19 | Hong Shengchang Resources (01850.HK) announced that the board of directors proposed implementing the capital restructuring as follows: (i) share consolidation, whereby each of the five (5) existing shares with a face value of HK$0.20 per share will be consolidated into one (1) consolidated share with a face value of HK$1.00 per share; (ii) share capital reduction. Based on this, (a) immediately after the share merger, the consolidated shares in the company's issued share capital will be consolidated by canceling any fragmented consolidated shares of the company's issued share capital The total amount has been reduced to the nearest whole number; and (b) by cancelling each share The company that issued consolidated shares of HK$0.99 paid up the share capital and reduced the face value of each issued consolidated share from HK$1.00 to HK$0.01; (iii) the share split, according to which, immediately following the reduction in share capital, the statutory but unissued existing shares of HK$0.20 per share were split into 20 adjusted shares with a face value of HK$0.01 per share; and (iv) the income generated by the share capital reduction will be used to offset the cumulative loss. After the accumulated losses have been offset, the balance received (if any) will be transferred to the Company's reserve account, and may be used by the Company in any manner permitted by all applicable laws, outlines and rules, and the Board of Directors deems appropriate.

The company proposes that after the capital restructuring comes into effect, according to the basis of four (4) shares offered for each (1) adjusted share held on the record date, the shares are offered at a subscription price of HK$0.53 per share to raise up to approximately HK$73.27 million (before expenses) by issuing a maximum of 138,240,000 shares offered (assuming there is no change in the total number of issued shares from the date of announcement until the date of record (including that date)).