Chong Fai Jewellery Group Holdings Company Limited (stock code: 8537) has released additional information related to the use of net proceeds from a rights issue completed on 12 September 2024. The rights issue raised gross proceeds of approximately HK$27.00 million, with net proceeds of around HK$26.00 million after deducting fees and expenses.
According to the original plan, HK$12.00 million was allocated for opening a new retail store, HK$3.00 million for renovation of existing stores, HK$7.00 million for repaying bank borrowings, and HK$4.00 million for general working capital. On 28 March 2025, the board resolved to reallocate the unutilized HK$12.00 million originally intended for a new store to HK$9.60 million for acquiring additional equity in Grand Rise Creation Limited, which owns the Group’s flagship store, and HK$2.40 million for general working capital. This adjustment aligned with the Company’s focus on optimizing costs and operations under prevailing market conditions.
By 31 March 2025, HK$7.00 million of the net proceeds had been utilized, leaving a balance of HK$19.00 million. As of 31 December 2025, the entire HK$9.60 million for acquiring equity in Grand Rise Creation Limited and the remaining allocations for renovation, debt repayment, and working capital had been utilized as revised. The Company confirmed there were no further changes within this period.
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