Lvbo Ecological to Settle HK$155 Million Debt via Share Swap with Greenland Financial

Lvbo Ecological (01253.HK) has entered into a share swap agreement with Greenland Financial Overseas Investment Group to settle a significant outstanding debt, a move designed to deleverage its balance sheet. The deal involves issuing a substantial block of new shares to extinguish a liability of approximately HK$155 million.

Details of the Transaction

According to a joint announcement released after trading hours on September 21, Lvbo Ecological will issue 595 million new shares to Greenland Financial at an issue price of HK$0.26 per share. This issuance is intended to fully settle the outstanding debt, which stood at approximately HK$155 million (including accrued interest) as of May 31, 2026.

The companies stated that the primary objective of the debt-for-equity swap is to reduce Lvbo Ecological's total offshore debt level by approximately 52%, significantly strengthening its financial position.

Impact on Share Capital

The issuance will have a major impact on Lvbo Ecological's ownership structure. The 595 million new shares represent:

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• Approximately 98.51% of the company's total issued shares as of the announcement date.
• Approximately 49.62% of the company's enlarged issued share capital upon completion of the transaction.

This will make Greenland Financial a substantial shareholder, reflecting a significant dilution for existing investors but also a vote of confidence from a major creditor.

Context of the Agreement

Beyond the debt being settled, the announcement clarified the existing financial relationship between the two parties. Greenland has also provided Lvbo Ecological with interest-free financial assistance of approximately RMB 81 million to support general working capital, which has no fixed repayment schedule. The company confirmed it has no other liabilities to Greenland or its subsidiaries outside of these arrangements.