WAN KEI GROUP (01718.HK): Further Reallocates 2016 Placing Proceeds; HKD 3.4mn to Working Capital

NewTimeSpace News: On 23 September 2026, Wan Kei Group Holdings Limited (the "Company") announced a further change to the use of the net proceeds from the 2016 placing. As of the date of this announcement, the Group had utilised approximately HKD 130.6 million (about 97.46%) of the net proceeds and had approximately HKD 3.4 million (about 2.54%) remaining unused. The board resolved to reallocate approximately HKD 3.4 million of the unused net proceeds from "funding for possible further acquisitions" to "general working capital", expected to be fully utilised by 30 June 2027.

The announcement disclosed that the net proceeds from the 2016 placing amounted to approximately HKD 134.0 million. The board made the change after careful consideration and assessment of the Group's business operations and strategy. The reallocation will direct the funds to pressing operating needs, including directors' fees, remuneration and staff costs (about HKD 2.6 million), legal, audit and other professional fees (about HKD 0.6 million) and office rental expenses (about HKD 0.2 million).

The Company stated that since the January 2023 announcement the Group has completed three acquisitions (including the April 2024 acquisition of the remaining 49% of Chun Wan International, the November 2025 acquisition of 51% of Wanyou Technology (HK), and the February 2026 acquisition of 70% of House Clover Ventures). The board considers that, while the diversification and expansion strategy remains unchanged, reallocating the funds to general working capital is prudent and in the overall best interests of shareholders, will not have any material adverse impact on existing business and operations, and preserves the ability to capture future acquisition opportunities.

NewTimeSpace Disclaimer: All content herein is the original work of NewTimeSpace. Any reproduction, reprinting, or use of this content in any other manner must clearly indicate the source as "NewTimeSpace". NewTimeSpace and its authorized third-party information providers strive to ensure the accuracy and reliability of the data, but do not guarantee the absolute correctness thereof. This content is for reference only and does not constitute any investment advice. All transaction risks shall be borne by the user.