On November 4, Gelunhui reported that CN Int Dev Corp (00264.HK) announced providing the latest business developments to shareholders and potential investors on a voluntary basis. The board of directors happily announced that on November 4, 2024, the company and a strategic partner may establish a joint venture and signed a memorandum of understanding regarding strategic business cooperation on hydrogen injection clean systems for automobile engines.

According to the memorandum of understanding, the company and the strategic partner plan to establish a joint venture ("joint venture"), with each holding 51% and 49% equity respectively. Through the establishment of a joint venture, the contracting parties plan to collaborate on the research, development, production, and sales of hydrogen injection clean systems for automobile engines. This cooperation aims to address air pollution control for China's motor vehicles and off-road mobile sources, to achieve energy conservation, emission reduction, cost reduction, and efficiency improvement, in support of China's dual carbon goals (strategic cooperation).

The strategic partner is registered and established in Hong Kong, mainly engaged in investment holding business. The company and the strategic partner have recently engaged in discussions to explore the possibility of establishing a joint venture aimed at conducting business related to hydrogen injection clean systems for automobile engines in China. Leveraging FFED's resources and technology, combined with the strategic partner and FFED's business, the company believes that the possible establishment of a joint venture will provide valuable opportunities for the group to enter the fields of carbon neutrality and carbon reduction technology. The board of directors believes that the establishment of a joint venture (if realized) will broaden the group's sources of income, achieving maximum long-term returns for the company and its shareholders.

On November 4, 2024, the placement agent entered into a placement agreement with the company. As per the agreement, the placement agent conditionally agreed to act as the company's placement agent on a best efforts basis to solicit no less than six underwriters (each and their ultimate beneficial owners being independent third parties) to subscribe for up to 40 million shares of placement shares at a price of HK$1.02 per share. The placement shares will be issued and distributed under general authorization.

The placement price per share is HK$1.02, representing a discount of approximately 19.05% to the share's closing price of HK$1.260 on the Stock Exchange on the date of the placement agreement. Upon completion of the placement, the expected total amount and net amount of proceeds from the placement (after deducting placement commission, professional fees, and all related expenses borne by the company) will be approximately HK$40.8 million and HK$39.6 million, respectively. Based on this benchmark, the net issue price will be approximately HK$0.99 per placement share.