XUNZHONG (02597) has announced a share placement agreement signed on September 10, 2026, before the start of trading on the Stock Exchange of Hong Kong. Under the agreement, the company has conditionally appointed a placing agent to procure, on a best-effort basis, no fewer than six independent placees to subscribe for 11.19 million placing shares at a price of HK$28.20 per share.

The placing shares represent approximately 9.19% of the total issued share capital (excluding treasury shares) as of the announcement date, and approximately 8.42% of the enlarged issued share capital (excluding treasury shares) following the allotment and issuance of the placing shares, assuming no other changes to the issued share capital between the announcement date and the completion date. The total nominal value of the placing shares will be RMB 11.19 million.

The placing price of HK$28.20 per share represents a discount of approximately 19.43% to the closing price of HK$35.00 per H-share as quoted on the Stock Exchange on September 9, 2026, the last trading day, and a discount of approximately 19.14% to the average closing price of HK$34.88 per H-share over the five consecutive trading days immediately preceding and including September 9, 2026.

Assuming all placing shares are fully subscribed, the gross proceeds and net proceeds from the placement, after deducting commissions and estimated expenses, are expected to amount to approximately HK$316 million and HK$314 million, respectively. Based on this, the net issue price per placing share will be approximately HK$28.03. The company intends to allocate the net proceeds as follows: (i) approximately 38.00% for computing power business infrastructure and R&D environment construction; (ii) approximately 22.00% for computing power business platform and product development; (iii) approximately 15.00% for procuring flexible computing power and hosting services from third parties; (iv) approximately 8.00% for computing power business team building and talent acquisition; (v) approximately 7.00% for computing power business market expansion, ecosystem collaboration, and solution delivery; and (vi) approximately 10.00% for the group's general working capital and general corporate purposes.