JIHONG CO Raises HK$112.80 Million via 9.37 Million H-Share Placement at 17% Discount

Bulletin Express07-20 22:22

Xiamen Jihong Co., Ltd. (abbreviated as JIHONG CO) has completed the placement of 9.37 million new H shares under its general mandate, generating gross proceeds of HK$114.70 million and net proceeds of HK$112.80 million after fees and expenses. Completion occurred on 20 July 2026 following approval from the Hong Kong Stock Exchange’s Listing Committee.

The new shares were issued at HK$12.24 each, representing discounts of 17.02% to the HK$14.75 closing price on the last trading day, 16.68% to the five-day average immediately before that day, and 16.20% to the five-day average preceding the signing of the placing agreement. No single placee became a substantial shareholder, and all placees are independent third parties.

Post-placement, total issued shares (excluding treasury shares) increased to 447.84 million. H-share holders now account for 17.25% of the enlarged capital, versus 15.49% previously, while the A-share single largest concert group remains the dominant bloc at 25.24%.

Net proceeds are earmarked as follows: • 80% (HK$90.24 million) for global expansion of the cross-border social e-commerce business, including 40% for market entry in Northeastern Europe and the Middle East, 30% for existing self-developed brands, and 10% for further R&D of the “Giikin” system with AI and data enhancements. • 10% (HK$11.28 million) for optimisation of the FMCG paper-packaging supply chain. • 10% (HK$11.28 million) for working capital and general corporate purposes.

Management targets full deployment of the funds by end-2027; any unutilised balance will be held in short-term interest-bearing accounts. The company will complete the necessary CSRC filings in accordance with mainland regulatory requirements.

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