Beijing Xunzhong Communication Technology Co., Ltd. (XUNZHONG) has signed a placing agreement with Winbull Securities International (Hong Kong) Limited to issue 11.19 million new H shares at HK$28.20 each. The transaction, announced on 10 September 2026 before market open, is being executed on a best-efforts basis and targets at least six independent institutional or professional investors.
Key terms • Issue size: 11.19 million new H shares • Placement price: HK$28.20, reflecting a 19.43% discount to the 9 September close of HK$35.00 and a 19.14% discount to the five-day average of HK$34.88. • Proceeds: gross HK$315.56 million; net HK$313.64 million, implying a net issue price of HK$28.03 per share. • Dilution: new shares equal 9.19% of existing share capital and 8.42% post-issue. • Listing: application to list the new shares on the Hong Kong Stock Exchange has been submitted. • Lock-up: the company is restricted from issuing additional equity for 30 days post-completion.
Use of net proceeds XUNZHONG will channel funds into its emerging computing-power operation services segment: 1. Infrastructure & R&D environment – 38.00% (HK$119.19 million) for AI servers, storage, and network equipment. 2. Platform and product development – 22.00% (HK$69.00 million) for computing-power scheduling, AI training/inference platforms, and customer-facing solutions. 3. Elastic computing power & hosting – 15.00% (HK$47.05 million) for third-party cloud resources and data-centre services. 4. Talent acquisition & team building – 8.00% (HK$25.09 million) to recruit ~40 specialists in algorithms, engineering, and operations. 5. Market expansion & ecosystem cooperation – 7.00% (HK$21.95 million) for solution delivery, partnerships, and branding. 6. General working capital – 10.00% (HK$31.36 million).
Shareholding impact Upon completion, total issued shares will rise from 121.75 million to 132.94 million. H-share free float will expand from 25.00% to 31.31%. Chairman and CEO Piao Shenggen remains the largest shareholder with 18.79% of enlarged capital; the company continues to have no controlling shareholder.
Next steps & conditions Completion is contingent on Hong Kong Stock Exchange listing approval, PRC regulatory filings, and standard warranties. The placing is slated to close no later than 18 September 2026, but may lapse if conditions are unmet. No equity fundraising has been undertaken by XUNZHONG in the past 12 months.