Anhui Conch Material Technology Co., Ltd. (CONCH MAT TECH) has proposed to redirect HK$143.80 million of its unutilised global offering proceeds to fund the first-phase construction of a cement and concrete grinding-aids facility in Maoming City, Guangdong Province (“Maoming Project”).

The redeployment represents the core of a wider restructuring of HK$282.50 million in outstanding funds raised from the December 2024 IPO. As at the latest practicable date, CONCH MAT TECH had used HK$113.40 million of the HK$395.90 million raised, leaving HK$282.50 million unspent. Subject to shareholder approval at the 20 May 2026 AGM, the new allocation will be as follows:

1. Maoming Project – HK$143.80 million (50.9% of remaining proceeds), earmarked for land acquisition (HK$43.80 million), equipment purchases (HK$50.00 million) and plant construction (HK$50.00 million). Completion is scheduled for December 2028.

2. Overseas and domestic capacity upgrades – HK$19.90 million (7.1%), comprising HK$8.00 million for completing an Indonesian plant by June 2028, HK$7.90 million for production automation by June 2026, and HK$4.00 million to enhance infrastructure by December 2026.

3. R&D programmes – HK$59.40 million (21.0%), including HK$52.70 million for ongoing initiatives through June 2028 and HK$6.70 million to commercialise ethylene carbonate by December 2026.

4. M&A and joint ventures – HK$59.40 million (21.0%) targeted for deployment by December 2026.

To fund the Maoming Project, CONCH MAT TECH will reallocate:

• HK$39.40 million originally earmarked for bank-loan repayment (parent-company debts now fully settled); • HK$12.50 million no longer required for the completed Huludao plant; • HK$22.00 million released from the Uzbekistan and Indonesia projects following substantial completion of the former and reduced funding needs for the latter; • HK$39.60 million previously budgeted for marketing initiatives already executed with internal resources; and • HK$30.30 million from general working capital.

Management states that the shift aligns with the group’s strategic intent to strengthen its presence in South China and ASEAN markets. Maoming offers proximity to target customers, established petrochemical infrastructure and supportive industrial policies, expected to reduce logistics and operating costs and enhance supply-chain resilience.

Post-approval, CONCH MAT TECH will continue disclosing utilisation progress in periodic reports. The board asserts that the revised deployment improves capital efficiency without adversely affecting existing operations.