Congyu Intelligent Agriculture (00875) has announced that on August 17, 2026, following the trading session on the Stock Exchange, the company entered into a placing agreement with a placing agent. Under this agreement, the company has conditionally agreed to place up to 140 million placing shares at a placing price of HK$0.24 per share, on a best-effort basis, to no fewer than six placees who, along with their ultimate beneficial owners, must be independent third parties.

The placing shares will be allotted and issued under the general mandate granted to directors at the annual general meeting, and no shareholder approval is required for their allotment and issuance. These shares represent approximately 20% of the total issued shares as of the announcement date and, assuming no changes in the company's issued share capital between the announcement date and the completion of the placement, approximately 16.7% of the enlarged issued share capital. The total nominal value of the maximum number of placing shares will be approximately HK$1.3981 million.

The placing price of HK$0.24 per share represents a discount of approximately 18.64% to the closing price of HK$0.295 per share quoted on the Stock Exchange on the date of the placing agreement. Assuming all placing shares are successfully placed, the maximum gross proceeds from the placement are estimated at approximately HK$33.6 million. After deducting placing commissions, professional fees, and all related expenses borne by the company, the net proceeds are estimated to be approximately HK$32.9 million.

Regarding the use of funds, the company intends to allocate approximately HK$30 million of the net proceeds to repay borrowings and approximately HK$2.9 million for the group's general working capital purposes.