CHINA WATER (00855) announced that on April 1, 2026 (after trading hours), the company entered into a warrant placement agreement with a placing agent regarding the warrant placement. Under the agreement, the placing agent agreed to use its best efforts to place up to 130 million warrants to warrant placees (who, together with their ultimate beneficial owners where applicable, are independent third parties). Each warrant carries the right to subscribe for one warrant share at an initial exercise price of HK$7.02 per warrant share (subject to adjustments), allowing subscription for up to 130 million warrant shares.

Assuming the maximum number of warrants are placed at the warrant placing price, the gross proceeds from the warrant issue are expected to be approximately HK$13 million, with net proceeds estimated at around HK$12.5 million. The net proceeds from the warrant issue are intended to be used as general working capital for the group, covering expenses such as salaries, rental costs, and other office expenditures.

If all subscription rights attached to the maximum number of warrants are exercised at the initial warrant exercise price, additional gross proceeds of up to approximately HK$913 million are expected to be raised. The total net proceeds from the warrant placement and the allotment and issue of warrant shares, amounting to a maximum of approximately HK$925 million, are planned to be allocated as follows: (a) about HK$833 million (representing roughly 90% of the total net proceeds) will be used to repay the group’s debts; and (b) approximately HK$92.51 million (representing about 10% of the total net proceeds) will serve as general working capital for the group, including salary payments, rental expenses, and other office costs.