Hengyu Group (02448) issued an announcement. In order to adapt to the Group's future expansion and growth, the board of directors proposed increasing the company's current authorized share capital from HK$20 million, divided into 2 billion existing shares with a face value of HK$0.01 per share to HK$100 million, divided into 10 billion existing shares with a face value of HK$0.01 per share (or 500 million consolidated shares after the share merger takes effect).
The board of directors proposed a share consolidation proposal to shareholders, which involved merging the issued and unissued existing shares with a face value of HK$0.01 per 20 shares into a consolidated share with a face value of HK$0.20 per share. The share consolidation is subject to approval by shareholders in the form of an ordinary resolution at the special shareholders' meeting before it can actually take place. Currently, shares are traded on the Stock Exchange with 2,500 shares per trading unit. After the share merger comes into effect, the trading unit for each lot traded in the consolidated shares will still be 2,500 consolidated shares. At the date of this announcement, the Company's authorized share capital was HK$20 million, divided into 2 billion existing shares with a face value of HK$0.01 per share. Of these, 1,161 billion existing shares have been issued and paid in full or recorded in the accounts. After the increase in the authorized share capital and the share merger comes into effect, assuming there is no change in the number of shares issued from the date of this announcement until the effective date of the share merger, the company's authorized share capital will be HK$100 million, divided into 500 million consolidated shares with a face value of HK$0.20 per share, of which 58.032 million consolidated shares (paid in full or recorded in the accounts) will be issued.