On July 27, BRETON (01333.HK) shares staged a strong rebound from the bottom, closing at HKD 11.60, up 5.74%, with a turnover of approximately HKD 84.71 million. The stock briefly surged to HKD 13.23 during the session, marking a maximum gain of over 20%, with a full-day swing of about 25.16%, indicating a positive market reaction.
On the news front, on July 24, BRETON announced that it had entered into a placing agreement with a placement agent to issue up to 3.05 million new H-shares at a price of HKD 10.08 per share. This price represents a discount of approximately 8.11% to the closing price of HKD 10.97 on July 24. The net proceeds from the placement are expected to be approximately HKD 29.5 million. The company explicitly stated that 100% of the net proceeds from the placement will be used for the investment and development of the Group's overseas projects, such as the first phase of the Ruashi project.
Since February, BRETON’s extraordinary general meeting approved an investment of approximately USD 130 million in the Ruashi solar-storage project in the Democratic Republic of the Congo (DRC). The plan includes building a 118 MWp photovoltaic power station and a 330 MWh energy storage microgrid project. The company expects the first phase of the Ruashi project to be connected to the grid by the end of the fourth quarter of this year. During this process, it will incur capital expenditures of about HKD 210 million related to equipment procurement, engineering construction, installation, commissioning, project ancillary facilities, and other project construction. Approximately HKD 30 million of this is planned to be funded by the net proceeds from the placement.
BRETON is a high-tech enterprise focused on the new energy sector, providing one-stop green production solutions for users. Its core products include pure electric loaders, wide-body dump trucks, and electric tractors for new energy construction machinery, alongside integrated energy management solutions for wind, solar, storage, and transportation. Facing the pressure of expanding losses, BRETON urgently needs to scale its business and enhance profitability. The overseas market is a crucial part of its strategic blueprint for integrating "solar-storage + electric mining trucks + autonomous driving."
This year, BRETON has intensified its overseas expansion. The company's first large-scale smart microgrid project in the DRC, the Dizwa project, which is planned to be a 76 MWp photovoltaic power station and a 100 MWh energy storage station, has already been connected to the grid. It is expected to generate a stable monthly power output of approximately 8 million to 11 million kWh. This project was also the first major overseas project funded by BRETON’s previous share placement. Meanwhile, the company's other smaller solar-storage projects in Africa are also entering construction and grid-connection phases. The company stated that as the Dizwa project, Zimbabwe project, Sierra Leone project, and the first phase of the Ruashi project are gradually connected to the grid, they will generate sustainable, considerable, and stable electricity operation revenue, significantly boosting the profitability contribution of the solar-storage business.
Overall, BRETON’s share placement to fund overseas expansion is both a pragmatic move to alleviate short-term funding pressure and a key step in its long-term strategy. The company is accelerating the transformation of its systemic advantages in "electric mining trucks + solar-storage energy + autonomous driving" into actual orders and operational revenue in emerging overseas markets. Although it still faces risks such as expanding losses, overseas geopolitical factors, and exchange rate fluctuations, if it can continuously validate the commercial viability of its "equipment + energy" integrated model, the vast mine transformation demand in regions like Africa and the Middle East could open a second growth curve for the company.
It is worth noting that preparations for the 13th "Top 100 Hong Kong Stocks" selection are progressing orderly. This list is an authoritative annual value ranking for Hong Kong stocks, based on a multi-dimensional scoring system covering profitability, growth potential, and secondary market performance. It includes leading companies across all sectors, including consumer, cross-border e-commerce, technology, and finance, serving as an important reference for investors screening quality Hong Kong stock targets. In the 12th "Top 100 Hong Kong Stocks" selection, BRETON won the "Most Watched IPO Company of the Year" award. It remains to be seen whether the company can make the list again in the 13th edition.