HSC Resources Group Limited Issues Supplemental Announcement on 2024 Share Placing Proceeds

Key Points for Investors

• Placing of New Shares Successfully Completed: HSC Resources Group Limited completed a share placement on 16 May 2024, issuing a total of 28,800,000 new shares at a final placing price of HK\$0.67 per share. This was an adjustment from earlier agreed prices of HK\$0.56 and HK\$0.63, reflecting rising demand and a favorable pricing environment.
• Net Proceeds Raised: The company raised net proceeds of approximately HK\$18,517,000 from this exercise, which may affect the company’s valuation and liquidity.
• Use of Proceeds Fully Disclosed and Utilised:
• HK\$11,000,000 was allocated and used for business expansion opportunities.
• HK\$3,000,000 was used for repayment of shareholders’ loans, reducing financial leverage and potential interest costs.
• The remaining HK\$4,517,000 was applied to general working capital, enhancing the company’s short-term financial flexibility.
• All Proceeds Utilised: As of 30 April 2025, the entire HK\$18,517,000 raised has been fully utilised according to the original plan, with no deviation or material change from the intended use. This transparency is key for investor confidence.

Details of the Share Placement

On 17 April 2024, HSC Resources Group Limited entered into a Placing Agreement with a Placing Agent to issue up to 28,800,000 new shares. The placing price underwent two upward revisions, from HK\$0.56 to HK\$0.63, and finally to HK\$0.67 per share, before the placement was completed. The shares were placed to not less than six independent placees, broadening the shareholder base and potentially increasing market liquidity for HSC Resources shares.

The rationale for the share placement was to raise additional capital, strengthen the Group’s financial position, and broaden its shareholder base, which could have a positive impact on share liquidity and investor interest.

Potential Price Sensitive Information

• Efficient Capital Utilisation: The company has demonstrated prudent and efficient use of capital, having deployed all funds as intended by 30 April 2025. This could be viewed positively by investors, as it reflects strong management and strategic discipline.
• No Material Change in Use of Proceeds: There has been no deviation or unexpected change in the planned use of proceeds, indicating management’s commitment to transparency and execution.
• Financial Strengthening: The repayment of shareholder loans and allocation of funds to business expansion and working capital are expected to enhance the company’s balance sheet and operational capacity, which could be price supportive.

Other Information

The supplemental announcement explicitly states that it does not affect any other information contained in the Company’s Annual Report for the year ended 30 April 2025, and that all other disclosures remain unchanged.

The announcement was signed by Mr. Li Shing Kuen Alexander, Executive Director, on 24 April 2026.

As of the date of the announcement, the Board consists of three Executive Directors (Mr. Li Shing Kuen Alexander, Mr. Wang Le, and Ms. Ma Man Chi) and three Independent Non-executive Directors (Mr. Li Ka Chun Gordon, Ms. Ye Liping, and Ms. Li Fang).

Investor Takeaway

This supplemental announcement offers full transparency and accountability regarding the placing of new shares and the utilisation of proceeds, which is essential for investor decision-making. The efficient use of funds for business expansion, debt repayment, and working capital may enhance the company’s financial standing and long-term growth prospects, possibly impacting share value and investor sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research and consider their own circumstances before making investment decisions. The author and publisher accept no liability for any losses or damages arising from reliance on this article.

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