GUOQUAN reallocates HK$173.80 million of IPO funds to expand factory network, pushes utilisation deadline to end-2028

Bulletin Express
Yesterday

GUOQUAN (Stock Code: 02517) has unveiled a substantial reshuffle of its HK$448.70 million Global Offering proceeds, sharpening focus on in-house production capacity and supply-chain resilience.

At its 26 August 2026 board meeting, the company approved moving HK$173.80 million—originally earmarked for new self-operated stores (HK$139.50 million) and product R&D centres (HK$34.30 million)—into the budget for “building, investing in or acquiring factories”. This boosts the factory allocation to HK$176.00 million from just HK$2.20 million previously.

Key data as of 30 June 2026 • Total net IPO proceeds: HK$448.70 million • Utilised to date: HK$155.40 million • Remaining balance: HK$293.30 million (all subject to the new plan)

Revised unutilised allocations 1. Factories: HK$176.00 million (up from HK$2.20 million) 2. Upgrading existing plants/lines: HK$67.30 million (unchanged) 3. Self-operated stores: HK$40.00 million (down from HK$179.50 million) 4. R&D centres and equipment: HK$10.00 million (down from HK$44.30 million) 5. Working capital/general corporate: fully deployed

Management cited escalating requirements for raw-material bases, warehousing and logistics as the primary driver behind the reallocation. The company aims to “enhance the stability, flexibility and overall operational efficiency” of its supply chain, while slowing the roll-out of self-operated stores in favour of strengthening the domestic franchise model.

To match project timelines, GUOQUAN has also pushed the deadline for full utilisation of the remaining HK$293.30 million back by one year—from 31 December 2027 to 31 December 2028.

The proposed changes will be put to shareholders for approval at an extraordinary general meeting on 10 September 2026.

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