Guoquan Food (Shanghai) Co., Ltd. (GUOQUAN FOOD) has proposed a significant reallocation of unutilised proceeds from its 2023 Hong Kong IPO, shifting HK$173.80 million toward factory construction, investment and acquisitions, according to a supplemental exchange filing dated 9 September 2026.

The board’s review of capital deployment showed slower-than-expected spending on previously earmarked projects, notably overseas self-operated stores and in-house R&D centres, prompting the re-prioritisation:

• Self-operated stores: The company retains HK$40.00 million for this purpose and will redirect HK$139.50 million. GUOQUAN FOOD’s expansion has been driven almost entirely by franchised outlets—12,190 of 12,198 stores as of 30 June 2026—leaving limited near-term need for self-funded locations outside Mainland China. Only one pilot store opened in Hong Kong in mid-2026 and will remain in a refinement phase for at least a year.

• Product R&D centres and equipment: The joint R&D model with suppliers has trimmed capital requirements. The board will keep HK$10.00 million for ongoing R&D needs and reallocate HK$34.30 million.

• Factory investment: Prior to this proposal, the group had already deployed HK$109.90 million of IPO proceeds to supply-chain projects, including HK$59.60 million for a stake in seafood supplier Beihai Daixiaji Food and HK$50.30 million for a new production base in Danzhou, Hainan. Only HK$2.20 million of the original factory budget remained. The proposed HK$173.80 million top-up is intended to strengthen proprietary supply-chain capabilities across raw-material sourcing, production scheduling, quality control and logistics.

Management highlighted the need for greater supply-chain control and flexibility to support rapid franchise growth. Since year-end 2023, the total store count has risen by 18.3% to 12,198, including 3,377 township-level outlets that now make up over 27% of the network.

The company stated there have been no other material changes to its business or operations beyond the proposed funds reallocation. Shareholders and investors are advised to exercise caution when trading GUOQUAN FOOD securities.