Hong Wei Asia (08191) announced that the company plans to conduct a rights issue on the basis of 4 rights shares for every 1 existing share held on the record date. The subscription price is set at HK$0.13 per rights share, aiming to raise up to HK$38.33 million (before expenses) through the issuance of a maximum of 295 million rights shares, assuming the number of issued shares remains unchanged on or before the record date. If all rights shares are fully subscribed and the number of issued shares remains unchanged, the net proceeds from the rights issue are estimated to be approximately HK$37.19 million.

As of December 31, 2025, the Group's bank balances and cash amounted to approximately HK$830,000. The company has entered into a deed of settlement to clear the outstanding notes with a total consideration of HK$7.5 million, payable in installments. Upon full and timely payment of this consideration, all liabilities under these notes will be discharged. Additionally, the Group has outstanding loans payable to two individuals, each amounting to HK$15 million. This situation has placed the Group under significant financial pressure. The company's management has been actively considering feasible fundraising options to enhance the Group's capitalization/equity and support its ongoing growth.

The company plans to use the net proceeds of approximately HK$37.19 million from the rights issue to settle the aforementioned debts. Specifically, (i) approximately HK$7.5 million and HK$21.77 million will be used to clear the outstanding notes and repay the loans, respectively; (ii) approximately HK$3.96 million will be allocated to develop existing business related to fixed asset investments, such as purchasing equipment and supporting infrastructure; and (iii) approximately HK$3.96 million will serve as the company's general working capital, covering professional fees and administrative expenses.