CXI has decided on a 48 billion won third-party placement capital increase. The company pursued this capital increase to secure funds needed for AI utilization, digital operations, and other purposes.

According to CXI on the 21st, the new shares to be issued through this capital increase amount to 8 million common shares, with an issue price of 6,000 won per share. The total subscription amount is 48 billion won, and it will be used entirely as operating funds. The new shares are scheduled to be listed on October 7, 2026, following payment on August 28, 2026.

The third-party placement targets are three in total, and all allotted shares will be subject to a one-year lock-up period.

• LIN JINSHENG (Major Shareholder): 3.2 million shares • ZHANG DONGXIAN: 2.4 million shares • WANG GUANGCAI: 2.4 million shares

The specific uses of the raised funds (48 billion won) are as follows. The funds will be deployed in stages from 2026 through 2027 and beyond.

• AI utilization and digital operations: 19.2 billion won • Tea plantation acquisition and operation: 9.6 billion won • Labor costs: 9.6 billion won • Marketing expenses: 9.6 billion won

The company explained that under its foreign holding company structure, there are limitations to immediately utilizing funds held by its Chinese subsidiaries at the parent company level. It also added that the third-party placement method was chosen considering the difficulty for a listed foreign entity to raise large-scale funds in the Korean market.

Meanwhile, this capital increase agenda will be finalized if the amendment to the articles of incorporation is approved by a special resolution at the extraordinary general meeting of shareholders scheduled for August 11, 2026. If it is not approved at the shareholders' meeting, the capital increase plan may be modified or canceled.