Transtech Optelecom Places Up to 40M New Shares to Raise Over HK280M with Patrons Serves as Joint Placing Agent

Transtech Optelecom Science Holdings Limited (hereinafter referred to as "Transtech Optelecom"), stock code 9963.HK, announced on August 14, 2026, its intention to place new shares under a general mandate. Patrons served as a joint placing agent in this placement, leveraging its mature capital market service experience and extensive investor network to fully assist the company in smoothly promoting its capital market financing.

It is understood that Patrons noted this placement intends to place up to 40,000,000 new shares at a placing price of HK$7.00 per share to no less than six places (independent third parties). The placing shares represent approximately 11.5% of the company's existing total issued shares, and approximately 10.3% of the total issued shares as enlarged upon completion. Assuming the placing shares are fully placed, the total gross proceeds are expected to be approximately HK$280 million, and the net proceeds after deducting related expenses will be approximately HK$279.3 million.

Transtech Optelecom is mainly engaged in the manufacturing and sales of optical communication products such as optical fiber preforms, optical fibers, and optical cables at production bases in China, Hong Kong China, and Thailand. As global digital transformation accelerates, and the infrastructure construction of 5G networks, data centers, and AI computing clusters flourishes, the optical communication industry continues to release high-prosperity demand.

Transtech Optelecom  has significant competitive advantages in the industry:

• Diversified production base layout: Production facilities are laid out in multiple locations in China, Hong Kong China, and Thailand, enabling better service to global customers and coping with international supply chain needs.

• Technological innovation and R&D capabilities: Continuously investing in technology upgrades, demonstrating solid R&D strength in cutting-edge high-end optical fiber products such as hollow-core optical fibers, polarization-maintaining optical fibers, and G.654.E ultra-low-loss optical fibers.

• Industrial chain synergy effect: Possessing complete R&D and production capabilities for optical fiber preforms, optical fibers, and optical cables, effectively improving cost efficiency and product quality control.

According to the company's plan, the net proceeds from this placement of approximately HK$279.3 million are intended to be allocated in the following proportions:

• Approximately 40% for purchasing main raw materials (such as silicon tetrachloride, germanium tetrachloride, etc.) to stabilize raw material costs and support expanded order production needs;

• Approximately 17% for expanding the optical fiber production capacity of the Thailand subsidiary, Futong (Thailand) Co., Ltd., to grasp market demand in Southeast Asia and overseas;

• Approximately 15% for enhancing R&D capabilities in hollow-core optical fibers, polarization-maintaining optical fibers, and G.654.E ultra-low-loss optical fibers (including personnel recruitment, equipment procurement, testing, and certification, etc.);

• Approximately 15% for general working capital of the Group (mainly including staff costs, utility expenses, rental, logistics, and administrative expenses);

• Approximately 13% for restarting the optical fiber production line of the Hong Kong subsidiary, Transtech Optical Communication Co., Limited, including recruiting production personnel and purchasing related equipment and materials.

During this process of Transtech Optelecom placing new shares, the Patrons team deeply participated as a joint placing agent. Relying on a profound understanding of the optical communication track, Patrons accurately assisted the company in conveying its industrial value, efficiently connected with high-quality domestic and overseas institutions as well as high-net-worth professional investors, ensuring the smooth and efficient progress of this placement project, and helping Transtech open a new chapter of long-term development in the international capital market.

If there is any inconsistency or ambiguity between these two versions, the Chinese version shall prevail.