Jiangsu Horizon Chain Supermarket Company Limited (Jiangsu Horizon) has signed a sale and purchase agreement to dispose of its entire 18% equity interest in digital-technology firm Haike Hongxin to Haike Chuangzhan for RMB25.00 million. Payment and completion are scheduled within 30 business days of the 17 July 2026 signing date. Post-completion, Jiangsu Horizon will hold no stake in Haike Hongxin, and all related assets and liabilities will exit the Group’s books.
Concurrently, Jiangsu Horizon, Haike Chuangzhan and Haike Hongxin executed a termination agreement cancelling the previously announced RMB53.21 million capital increase in Haike Hongxin. No funds were injected, and no penalties or compensation are payable by any party.
Based on Haike Hongxin’s unaudited PRC GAAP accounts, the company generated revenue of RMB5.19 million and net profit of RMB1.33 million from 28 April 2025 to 31 December 2025, but booked a net loss of RMB1.97 million on revenue of RMB6.04 million for the six months ended 30 June 2026. Net asset value declined to RMB24.36 million as at 30 June 2026.
Management cited Haike Hongxin’s recent losses and slower-than-expected progress in AI and robotics development as key reasons for the exit. The disposal proceeds will be directed to Jiangsu Horizon’s general working capital. As the carrying value of the investment approximated the sale price, no material gain or loss is expected on disposal.
Under Hong Kong Listing Rules, the original RMB25.00 million investment (November 2025) and the now-cancelled RMB53.21 million capital increase are aggregated with the current disposal and termination. The highest applicable percentage ratio for the combined acquisition limb (RMB78.21 million) is 5% or more but below 25%, classifying the series of transactions as a discloseable transaction requiring announcement but not shareholder approval.
Separately, Jiangsu Horizon will reallocate the entire HKD58.55 million of unutilised placing proceeds—originally earmarked for the Haike Hongxin capital increase—to general working capital, covering staff costs, audit and professional fees, and other operating expenses. A circular on this proposed change will be dispatched to shareholders for consideration at an upcoming general meeting.
The board affirms that these actions aim to optimise resource allocation and strengthen day-to-day operations without altering the Group’s existing business strategy in grain, oil wholesale, and its “Hongxinlong” supermarket and convenience-store network across Jiangsu Province.
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