Lingbao Gold Group Announces Completion of Share Placing and Top-Up Subscription, Raising HK\$770.6 Million

Key Highlights

• Successful completion of a placing of 29,816,000 existing H Shares at HK\$26.16 per share, and a top-up subscription of an equivalent number of new H Shares at the same price.
• Gross proceeds of approximately HK\$779.7 million with net proceeds of about HK\$770.6 million after deducting costs and expenses.
• Funds will be allocated to overseas acquisitions, gold mine construction, mineral reserve expansion in China, and general working capital.
• No new substantial shareholder will emerge as a result of this transaction; all placees are independent of the company and major shareholders.
• Shareholding structure has changed, increasing the issued share capital from 1,352,371,433 to 1,382,187,433 shares.

Details of the Placing and Subscription

Lingbao Gold Group Company Ltd. (Stock Code: 3330) has announced the successful completion of a significant equity transaction involving the placing of 29,816,000 existing H Shares and a top-up subscription for the same number of new H Shares, both priced at HK\$26.16 per share. The placing was executed by professional institutional and/or individual investors, who are all independent third parties.

The placing was conducted on a best-effort basis by the appointed placing agents. Importantly, none of the placees will become a substantial shareholder as a result of this transaction, ensuring that the company’s control and ownership structure remains stable.

The completion of the placing occurred on 16 April 2026, while the top-up subscription – under which new shares were issued to the vendor – was finalized on 22 April 2026. All regulatory and contractual conditions for the completion were fulfilled.

Use of Proceeds

The net proceeds from the subscription amount to approximately HK\$770.6 million. The company has provided a detailed allocation plan for these funds:

• 5% (approx. HK\$38.5 million): For acquisitions of overseas high-quality gold mining assets.
• 65% (approx. HK\$500.9 million): For the construction of the St Barbara gold mine project.
• 15% (approx. HK\$115.6 million): For exploration and expansion of mineral reserves in the People’s Republic of China (PRC).
• 15% (approx. HK\$115.6 million): For general working capital, primarily for raw material procurement.

This deployment of funds is expected to support the company’s growth strategy, both domestically and internationally, with a particular focus on expanding its gold mining footprint and optimizing its operational capacity.

Impact on Shareholding Structure

The completion of these transactions has resulted in the company’s total issued share capital increasing from 1,352,371,433 shares to 1,382,187,433 shares. Key changes are as follows:

• The vendor’s shareholding in H Shares decreased temporarily during the placing, but was restored to prior levels after the top-up subscription.
• Shenzhen Jiesi Weiye Holding Co., Ltd., and Lingbao State-owned Assets Operation Company Limited maintain significant holdings.
• The new placees, as a group, now hold 29,816,000 H Shares, representing approximately 2.16% of the enlarged share capital.
• The public shareholding increased, while the non-public (major shareholders and insiders) proportion decreased slightly.

The transaction does not result in any single entity or group gaining a controlling stake, preserving the company’s diversified ownership structure.

Leadership and Governance

The company’s board of directors remains unchanged, with a strong mix of executive, non-executive, and independent non-executive directors, including Mr. Chen Jianzheng (Chairman), Mr. Wang Pinran, Mr. Xing Jiangze, Mr. He Chengqun, Ms. Zhao Li, Mr. Zhang Feihu, Mr. Wang Guanran, Mr. Yeung Chi Tat, Mr. Bo Shao Chuan, Mr. Guo Michael Xinsheng, and Mr. Huang Hui.

Potential Price-Sensitive Implications

• Significant Capital Raise: The successful completion of this sizeable placing and subscription is likely to increase investor confidence in the company’s ability to attract capital and execute its growth initiatives.
• Strategic Investments: The planned use of proceeds, especially for overseas acquisitions and the construction of a major gold mine, could have a material positive impact on the company’s future earnings, resource base, and long-term value.
• Shareholder Dilution: Existing shareholders should note the increase in share capital, which may dilute earnings per share in the short term, though this is offset by the expected value accretive investments.
• Stable Ownership Structure: No substantial shareholder changes or new controlling interests have emerged, ensuring continued stability in corporate governance.

Conclusion

The completion of this placing and top-up subscription marks a significant milestone for Lingbao Gold Group. The capital raised will be strategically deployed to fuel the company’s expansion and resource development, both within China and overseas. With no disruptive changes to the ownership structure and a clear, growth-oriented use of funds, this development is likely to be viewed positively by the market and could have a favorable effect on the company’s share price.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell any securities. Investors should conduct their own research and consult with professional advisors before making any investment decisions. The information presented is based on public disclosures and may be subject to change without notice.

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