China Treasures New Materials Group Ltd. Announces Successful Completion of New Share Placing Under General Mandate

Key Highlights

• Successful Completion of Placing: China Treasures New Materials Group Ltd. (Stock code: 2439) has announced the successful completion of a placing of 200,000,000 new shares under its general mandate.
• Placing Date: Completion took place on 22 April 2026, after all conditions under the Placing Agreement and Supplemental Placing Agreement were fulfilled.
• Significant Share Capital Expansion: The 200 million new shares represent 20% of the existing issued share capital prior to the placing, and approximately 16.67% of the enlarged share capital post-placing.

Details of the Placing

• The new shares were placed to not less than six independent investors (the “Placees”), who are confirmed to be Independent Third Parties. None of the Placees has become a substantial shareholder as a result of this transaction.
• The placing has raised net proceeds of approximately HK\$45.8 million for the Company after deduction of related costs and expenses.
• Funds raised will be used for purposes previously outlined in the Company’s Supplemental Announcement (details of which are not specified in this announcement).

Impact on Shareholding Structure

Note: The shareholding structure reflects a dilution in percentage terms for existing major shareholders as a result of the expanded capital base.

Important Information for Shareholders

• Dilution Alert: With the issuance of 200 million new shares, existing shareholders will experience dilution in their percentage holdings, even though their absolute number of shares remains unchanged. This is a significant development that may impact the share price in the short term.
• No Change in Control: Despite the significant placement, no new substantial shareholder has emerged, and the controlling stakes of the major shareholders (Ms. Zhang Yuqiu, Mr. Shan Yuzhu and associated entities) are maintained, albeit at a lower percentage.
• Capital Raising Use: The net proceeds of HK\$45.8 million are expected to support the Company’s previously announced strategic objectives. Investors should monitor future disclosures regarding the deployment of these funds, as these could further impact valuation.
• Management and Board: The Board continues to be led by Ms. Zhang Yuqiu as Chair and Executive Director, with Mr. Shan Yuzhu, Mr. Li Xiquan, and Mr. Li Peng as executive Directors, and three independent non-executive Directors. The close relationship between Ms. Zhang and Mr. Shan (wife and husband) means they are deemed interested in each other’s shareholdings, per regulatory requirements.

Potential Price Sensitive Considerations

• The substantial increase in share capital and funds raised could provide the Company with enhanced financial flexibility, which may be viewed positively if the capital is deployed effectively.
• However, the immediate dilution effect is typically perceived as negative by the market, particularly if the proceeds’ intended use does not generate commensurate shareholder value in the short to medium term.
• The fact that the placing has not resulted in any new substantial shareholder or change of control is likely to reassure existing investors regarding stability in corporate governance.

Disclaimer

This article is for informational purposes only and does not constitute an offer or solicitation to buy or sell any securities. Investors are advised to conduct their own due diligence and consult their professional advisers before making any investment decisions. The information is based on publicly available disclosures as of 22 April 2026 and may be subject to change.

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