Kong Shum Smart Management Group (Holdings) Limited announced a change in the use of unutilised listing proceeds after failing to secure public-liability insurance for its planned old-district property management scheme.

The company raised HK$17.50 million through a placing in 2013. As at the date of the announcement (23 March 2026), HK$13.20 million had been fully deployed—HK$7.50 million for loan repayment and HK$5.70 million for portfolio expansion—while HK$4.30 million earmarked for the old-district scheme remained idle.

Because insurers declined to cover the ageing tenement buildings targeted by the scheme, the board resolved to redirect the HK$4.30 million balance to general working capital. The funds are now scheduled for deployment on or before 31 March 2027.

Management stated that the reallocation strengthens liquidity, provides flexibility for operating and administrative expenses, and supports ongoing business development without altering the group’s business nature.

Shareholders and potential investors are advised to exercise caution when trading the company’s shares.