Jiangsu Horizon Chain Supermarket Company Limited announced a restructuring of its unutilised IPO proceeds, redirecting HKD66.20 million to match near-term operational needs while land-title regularisation for a planned new distribution centre and central kitchen remains pending.
• Utilisation to date: Since listing, the group has applied HKD22.90 million of the HKD89.10 million net proceeds.
• Revised cash deployment: – Open new retail stores: allocation lifted to HKD11.90 million (previous unspent balance: HKD5.60 million). – Expand existing distribution centre: new earmark of HKD17.20 million, covering HKD10.00 million for building expansion and HKD7.20 million for equipment and fire-safety systems. – Establish new distribution centre: narrowed to HKD13.20 million, limited to land acquisition only; construction and equipment budgets have been set aside pending updated plans. – Establish new central kitchen: unchanged at HKD23.90 million; execution deferred until completion of land-title regularisation.
• Strategic rationale: 1. The existing distribution centre sits on land with valid certificates, allowing a quicker, lower-risk expansion compared with constructing a new facility. 2. Additional retail space is required to capture rising consumer demand; 2025 retail and wholesale revenue grew 15.0% year-on-year to RMB1.48 billion. 3. Central kitchen relocation and the greenfield distribution centre remain core projects but are contingent on government approval of land use rights under the Integrated Development of Primary, Secondary and Tertiary Industries policy.
• Governance: The board approved the reallocation on 27 April 2026 and will seek shareholder endorsement at an upcoming general meeting.
Management states that the revised plan better aligns capital deployment with current growth drivers and does not alter the group’s principal business focus.
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