HK Stock Market Move | ZENERGY (03677) now falls more than 7%, planning to offer an 8% discount on the rights issue to raise HK$500 million for expanding production and increasing investment in solid-state battery research and development.

ZENERGY (03677) is currently down more than 7%, as of the time of publication, it is down 7.05% to 11.08 Hong Kong dollars, with a trading volume of 224.16 million Hong Kong dollars. On the news front, ZENERGY announced that it plans to issue 45.92 million shares at a price of 10.98 Hong Kong dollars per share, a discount of approximately 7.89% from the previous day's closing price. The net proceeds of around 500 million Hong Kong dollars will be used for the construction, equipment purchase, and preparatory expenses related to the second phase of the new production factory in Changshu. Approximately 70% will be used for this purpose, 10% for the construction of the full solid-state battery pilot line, 10% for research and development activities, and 10% for operational funds and general corporate purposes. It is worth noting that Cao Dewang, chairman of Fuyao Glass Industry Group, has resigned, and his son Cao Hui has taken over. It is reported that ZENERGY was established and controlled by Cao Fang and Chen Jicheng, both former vice presidents of Fuyao Glass Industry Group. Cao Fang is also the younger sister of Cao Dewang, the founder and chairman of Fuyao Glass Industry Group. As the world's largest automotive glass supplier, Fuyao Glass Industry Group has a vast customer base of major automobile manufacturers.