Central China Management Company Limited has released a supplemental announcement detailing the deployment plan for the HK$69.20 million net proceeds to be raised from its June–July 2026 share subscriptions under the general mandate.
Key allocation 1. Distressed-property project management: HK$50.00 million (72% of proceeds) will seed an offshore distressed-asset fund to be formed with ShoreVest Partners. The fund will target both offshore assets and onshore projects held via offshore structures, complementing the Group’s planned HK$250 million onshore投入. 2. Digitalisation & intelligent upgrading: HK$15.00 million (22%) is split between building an AI-driven SaaS platform for real-estate project feasibility studies (HK$10.00 million) and a GEO-driven digital marketing programme (HK$5.00 million). 3. General working capital: HK$4.20 million (6%) for operating costs, professional fees and hiring in Hong Kong.
Strategic rationale • Market opportunity: PRC commercial bank non-performing loans reached RMB3.50 trillion by end-2025, with distressed real-estate transactions expected to surpass RMB1 trillion in 2026. • Partnership leverage: ShoreVest Partners manages approximately US$300 million in AUM and brings a two-decade track record across US$2.00 billion of private credit, distressed debt and special-situations capital in China. The collaboration is designed to combine ShoreVest’s sourcing and restructuring capabilities with Central China Management’s experience overseeing 260+ projects. • Financial targets: Each distressed-project revitalisation is expected to require around RMB60 million and deliver an average annualised return of about 10% over a three-year cycle.
Funding context • The Group still holds RMB599.00 million of unutilised IPO proceeds (May 2021) and RMB234.60 million from the May 2023 share subscription, reserved mainly for expanding government and capital project management services. • Approximately 99.9% of existing cash resides onshore; the new offshore proceeds provide flexibility for swift investment alongside global partners.
Management & resources The Group employs 269 project-management professionals and has appointed Co-President Mr Wang Dong—who brings 19 years’ experience in debt restructuring and distressed-asset management—to lead the new business line.
Next steps Both parties intend to finalise terms and establish the offshore fund in 3Q 2026, subject to satisfaction of all conditions precedent. Shareholders and investors are advised that completion of the subscriptions is not yet certain and should exercise caution when dealing in the company’s shares.
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