According to the announcement from HUASHENG INTL (01323), on June 11, 2026, the company plans to place up to 151 million placement shares, equivalent to approximately 20% of the total existing issued shares as of the date of this announcement; and the total number of issued shares after the placement and issuance of placement shares is expected to increase by approximately 16.67%. The placement price per share is HKD 0.127, representing a discount of about 5.93% compared to the closing price of HKD 0.135 per share on June 11. Assuming all placement shares are fully placed, the maximum total proceeds from the placement are expected to be approximately HKD 19.19 million, with net proceeds expected to be approximately HKD 18.49 million.

The company's indirect wholly-owned subsidiary, Hainan Huasheng, has been selected by the developer Sanya Yucai to be the strategic partner for the ready-mixed concrete batching plant project in the Yucai Ecological Zone (Yucai Ecological Zone) in Sanya, Hainan Province, China. Hainan Huasheng intends to establish a joint venture company (project company) with Sanya Yucai to develop the project and will contribute no less than RMB 20 million to the equity of the project company. The project will involve the construction and development of a concrete batching plant, storage system, conveying system, and laboratory. Construction is expected to commence by the end of 2026. The planned annual production capacity for the project is expected to be approximately 2 million cubic meters. Hainan Huasheng is currently negotiating a cooperation agreement with Sanya Yucai for the project. Sanya Yucai is a state-owned enterprise owned by the Management Committee of the Yucai Ecological Zone in Sanya City. The company intends to use the net proceeds from the placement for capital injection into the project company after the cooperation agreement is signed