Tianjin Construction Development Group Co., Ltd. Provides Supplemental Details on Share Placing Under General Mandate

Key Highlights

• Placing of new shares to raise capital under General Mandate.
• Net proceeds to be strategically allocated to three major areas:
  • Establishment of a mechanical leasing platform (34.3%)
  • General working capital (31.5%)
  • Potential investments in technology start-ups (34.2%)
• Placing completion subject to certain conditions; may or may not proceed.

Detailed Breakdown and Insights

Placing Closing Date and Terms

The closing date for the placing of new shares will be any business day no later than 11 March 2026, or a later date as mutually agreed by Tianjin Construction Development Group Co., Ltd. (“the Company”) and the Placing Agent. Completion is conditional upon satisfaction or fulfillment of all terms under the Placing Agreement.

Strategic Use of Proceeds

1. Establishment of a Mechanical Leasing Platform (34.3% of Proceeds)
   • The Company plans to establish a new subsidiary that will develop and operate a digital platform for the leasing of construction machinery and equipment.
   • This platform will utilize AI and Internet technologies to provide standardized, electronic, and efficient management of the entire leasing process, including:
     • Order placement
     • Contract management
     • Machinery and equipment management
     • Payment processing
     • Invoice issuance
     • Intelligent matching of customer requirements
     • Comprehensive monitoring of equipment usage
     • Credit assessment and electronic documentation
   • Target customers include construction companies, leasing companies, and individual equipment owners.
   • Fund allocation for this initiative:
     • 50% for research and development of the AI product
     • 40% for marketing and operations
     • 10% for other working capital needs
2. General Working Capital (31.5% of Proceeds)
   • To ensure sustainability of cash flow and business competitiveness, the funds will be used as follows:
     • 40% for staff salaries, rentals, and other administrative expenses
     • 20% for promotion and marketing
     • 40% for repayment of group indebtedness
3. Potential Investment in Start-up Companies (34.2% of Proceeds)
   • The Company plans to invest in start-ups (with valuations not exceeding RMB50 million) that are developing technology products or software platforms for the construction industry.
   • This strategy aims to:
     • Gain insights into new technologies
     • Enhance the Company’s own AI product competitiveness
   • No specific target companies have been identified as of the announcement date.

Timing and Cash Utilization

The Company expects to fully utilize the net proceeds from the Placing within the next three months, based on current operational and investment needs. The Board will regularly assess funding requirements and may consider future internal or external financing as required.

Potential Price-sensitive Information for Shareholders

• The Placing is not guaranteed to proceed: Completion is contingent on fulfillment of all Placing Agreement conditions. There is a possibility the Placing may not be completed, which could impact the Company’s capital position and future growth plans.
• Strategic growth initiatives: The Company’s allocation of funds towards AI-driven digital platforms and technology investments signals a strong pivot towards innovation and modernization, which could enhance long-term competitiveness and shareholder value.
• Short-term cash deployment: The plan to use all proceeds within the next three months suggests imminent business expansion and investment activity, which may influence cash flows and near-term financial performance.

Board Composition Update

As of the announcement date, the Board consists of:

• Executive Directors: Mr. Zhao Kuanghua, Ms. Guan Fengdan, Mr. Yang Youhua, Mr. Ni Baqun
• Chairman and Non-executive Director: Mr. Wang Wenbin
• Independent Non-executive Directors: Dr. Yan Bing, Dr. Liu Jinlu, Mr. Shiu Shu Ming

Investor Advisory

Shareholders and potential investors should exercise caution in dealing in the company’s shares, as the Placing may or may not proceed depending on the satisfaction of certain conditions.

Disclaimer: This article is prepared for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors are advised to conduct their own due diligence and consult with professional advisors before making any investment decisions. Tianjin Construction Development Group Co., Ltd. and its Board accept no liability for any direct or indirect loss arising from reliance on this information.

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