According to Zhitong Finance APP, Cherish Sunshine (01094) issued an announcement that as at 4:00 p.m. on Friday, 20 January  2023, being the Latest Time for Acceptance, a total of 12 valid applications had been  received for a total of 62,311,275 Rights Shares, representing approximately 32.81% of the  Offered Shares. Pursuant to the Irrevocable Undertaking, the Underwriter had subscribed  for 43,536,625 Rights Shares provisionally allotted to it. The remaining 127,596,678  Unsubscribed Rights Shares, representing approximately 67.19% of the Offered Shares,  were subject to the Compensatory Arrangements.

As at 4:00 p.m. on Friday, 3 February 2023, being the latest time of placing of the  Unsubscribed Rights Shares, 4,000,000 Unsubscribed Rights Shares had been successfully  placed to one placee, namely, Mr. Chen Yiqiang (陳奕強) (the “Placee”) at the price of  HK$0.63 per Share, which is equal to the Subscription Price. Therefore, there is no Net  Gain available to be distributed to the No Action Shareholders and the Non-Qualifying  Shareholders under the Compensatory Arrangements.

As a result of the under-subscription of the Rights Shares and the Placing, there are a total  of 123,596,678 Untaken Rights Shares, representing approximately 65.08% of the Offered  Shares. The Underwriter had performed its underwriting obligations under the Underwriting  Agreement to take up all the 123,596,678 Untaken Rights Shares. Based on the 123,596,678  Untaken Rights Shares underwritten by the Underwriter, together with the 43,536,625  Right Shares provisionally allotted to, and subscribed by the Underwriter and the number  of Shares already held by the Underwriter as at the Record Date, the aggregate number of  Shares held by the Underwriter is 236,791,903 and represents approximately 47.96% of the  enlarged issued share capital of the Company upon completion of the Rights Issue.

The gross proceeds raised from the Rights Issue were approximately HK$119.6 million  and the net proceeds from the Rights Issue after deducting the relevant expenses were  approximately HK$117.1 million. As disclosed in the Prospectus, the Company intends to  apply the net proceeds from the Rights Issue in the following manner as to (i) approximately  5% or HK$5.9 million for research and development of the procurement service software;  (ii) approximately 50% or HK$58.6 million on procurement services business; (iii)  approximately 10% or HK$11.7 million on trading business; (iv) approximately 20% or  HK$23.4 million for investment in office properties in Hong Kong; and (v) approximately  15% or HK$17.6 million as general working capital.