China Carbon Neutral Development Group Limited has issued a supplemental announcement detailing the allocation of the HK$77.27 million net proceeds it expects to raise from a new-share subscription under its general mandate.

Key financial allocations • Working capital: HK$38.64 million (50% of proceeds) earmarked for salaries (HK$19.34 million) and business-development expenses (HK$19.30 million). • Debt repayment: HK$38.64 million (50%).

Unutilised funds from January 2026 The company still holds HK$24.60 million from a subscription completed in January 2026—HK$21.50 million for working capital and HK$3.10 million for debt repayment, the latter targeted for completion by end-July 2026.

Battery Cascading Utilisation Business The fresh capital, together with the HK$21.50 million unspent from January, will channel roughly HK$40.80 million into the group’s core lithium-battery recycling operations, operated mainly through 60%-owned subsidiary Henan Zailiang New Energy. Between January and April 2026, the business deployed HK$15.00 million in working capital and HK$4.30 million in administrative expenses, signing 24 contracts valued at about HK$76 million.

Planned deployment of new funds 1. Recycling-network build-out: HK$8.00 million to establish 15 facilities (9 already contracted) across multiple Chinese provinces, completion targeted by August 2026. 2. Warehousing and logistics working capital: HK$18.00 million to secure upstream battery-recycling supply; full utilisation expected by December 2026. 3. Production-line and environmental upgrades: HK$6.00 million to enhance discharging, dismantling, sorting and pollution-control systems, with work commencing by August 2026. 4. Battery PACK production working capital: HK$6.00 million, deployment scheduled by September 2026. 5. R&D on recycling technologies: HK$2.80 million, in partnership with Zhengzhou University of Technology, to be spent by year-end 2026.

Operational backdrop Henan Zailiang’s customer list spans China Tower, China Recycling, EVE Energy, BYD, Farasis Energy Technology, Hubei Liming Lithium and Shaanxi Rigu New Energy, covering both upstream battery waste sources and downstream material purchasers. The subsidiary employs 35 staff, including a five-member management team with specialised lithium-battery experience.

Management view The board considers the subscription an effective means to fund expansion, improve liquidity and strengthen the company’s position in China’s fast-growing lithium-battery recycling value chain.