Core Viewpoint - Pengao Holdings Group (01865) proposes to increase its authorized share capital from HKD 100 million (divided into 1 billion shares) to HKD 500 million (divided into 5 billion shares) by adding an additional 4 billion unissued shares, pending shareholder approval at a special general meeting [1] Group 1: Capital Increase - The increase in authorized share capital requires approval from shareholders through an ordinary resolution at a special general meeting [1] - The proposed increase will take effect after the relevant ordinary resolution is passed at the special general meeting [1] Group 2: Convertible Bonds - On August 1, 2025, the company entered into a placement agreement with a placement agent to issue convertible bonds with a total principal amount of up to HKD 120 million to no fewer than six subscribers [1] - The convertible bonds can be converted into shares at an initial conversion price of HKD 0.218 per share, which represents a discount of approximately 14.5% compared to the closing price of HKD 0.255 per share on August 1, 2025 [1] Group 3: Fund Allocation - Assuming the placement agent fully places the convertible bonds, the net proceeds are expected to be approximately HKD 118.4 million [1] - About 84.5% of the proceeds will be used for the development costs of the first phase of the pumped storage power station project [1] - Approximately 15.5% will be allocated for the group's working capital to cover daily operating expenses, including employee costs and lease expenses, as well as to settle amounts payable to suppliers and subcontractors [1]

Group 1 - The company proposes to increase its authorized share capital from HKD 100 million (divided into 1 billion shares) to HKD 500 million (divided into 5 billion shares) by adding an additional 4 billion unissued shares, subject to shareholder approval at a special general meeting [1] - On August 1, 2025, the company entered into a placement agreement with a placement agent to issue convertible bonds with a total principal amount of up to HKD 120 million, convertible at an initial conversion price of HKD 0.218 per share, representing a discount of approximately 14.5% to the closing price of HKD 0.255 on August 1, 2025 [1] - Assuming full placement of the convertible bonds, the net proceeds of approximately HKD 118.4 million will be allocated with about 84.5% for the development costs of the first phase of a pumped storage power station project, and approximately 15.5% for the company's working capital to cover operational expenses including employee costs and payments to suppliers and subcontractors [1]