LITIAN PICTURES (09958) plans to increase its registered capital to HK$40 million and issue new shares on a "1 for 4" basis.

LITIAN PICTURES (09958) announced that the board of directors proposes to increase the company's authorized share capital from HKD 5 million (divided into 500 million shares of HKD 0.01 each) to HKD 400 million (divided into 4 billion shares of HKD 0.01 each) by the issuance of an additional 3.5 billion unissued shares of HKD 0.01 each. Upon the effective increase of the authorized share capital and approval by independent shareholders at a special general meeting, the board recommends issuing up to 2 billion rights shares on the basis of "1 for 4", at a price of HKD 0.095 per rights share, aiming to raise approximately HKD 190 million. The net proceeds from the rights issue are expected to be approximately HKD 188 million, with about 50.0% earmarked for repaying the group's existing debts and trade and other payables; approximately 30.0% for expanding the company's existing business, including the development and production of films and/or television series; and about 20.0% for replenishing the group's general working capital. The board also proposes to change the trading board lot size on the Exchange from 1,000 shares to 10,000 shares, effective from 9:00 AM on Friday, October 9, 2026.