According to the announcement by Yuzhou Group (01628) on the Zhitong Finance APP, the company proposes a rights issue based on the ratio of 49 rights issue shares for every 100 existing shares held on the record date at a subscription price of HK$0.035 per share, aiming to raise a maximum of approximately HK$0.1122 billion (before deducting professional fees and other relevant expenses) by issuing up to 3.2065 billion rights issue shares to eligible shareholders (assuming no change in the number of shares issued on or before the record date).

The estimated net proceeds from the rights issue will be up to approximately HK$0.1102 billion (assuming full subscription of the rights issue; and no change in the number of shares issued on or before the record date). The company intends to use the net proceeds to pay for restructuring support agreement expenses, costs related to the proposed restructuring, and the group's working capital needs. To support the proposed restructuring and rights issue, the sponsors (non-executive director and controlling shareholder Mr. Lin Longan, Chairman and CEO Ms. Guo Yinglan) have irrevocably committed to subscribe for a total of 1.895 billion rights issue shares, including all quotas for the committed shares to be issued (adjusted to the nearest integer for rights issue shares).