Shanxi Installation to Redirect HK$326.90 Million of Unused IPO Proceeds Toward Water Treatment and Solid-Waste Projects

Bulletin Express
Jun 04

Shanxi Installation Group Co., Ltd. announced a second revision to the deployment of funds raised from its November 2023 Hong Kong IPO, reallocating the entire HK$326.90 million in unspent proceeds to reflect shifting policy and market conditions.

Total fundraising and current position • Net IPO proceeds: HK$738.50 million • Utilised to date: HK$411.60 million • Unutilised balance: HK$326.90 million

Key reallocations proposed 1. Water treatment: Increase to HK$51.50 million (up HK$50.90 million) on stronger project demand and pumped-storage progress. 2. Solid-waste disposal: Increase to HK$83.50 million (up HK$64.20 million) to capitalise on policy support such as the national “Ten Measures for Solid Waste.” 3. Other new-energy initiatives: HK$24.80 million allocated (up HK$24.80 million) for additional capital required by the Taiyuan Wusu Airport Zero-Carbon project company. 4. Wind power: Cut by HK$70.00 million to HK$141.90 million owing to project suspensions. 5. Centralised photovoltaic: Cut by HK$9.30 million to HK$1.20 million for the same reason. 6. Clean-heating projects: Reduced by HK$51.40 million to HK$1.50 million after strategic shift to subsidiary Shanxi Shan’an Bluesky Energy Conservation Technology. 7. Upstream/downstream new-energy manufacturing: Down HK$9.20 million to HK$8.60 million. 8. Distributed energy projects remain unchanged at HK$13.90 million. Total proceeds allocation remains balanced at HK$326.90 million.

Rationale • Policy delays have paused several secured photovoltaic and wind projects, leading to lower capital needs in those segments. • National initiatives, especially the 2026 Action Plan, are accelerating demand in solid-waste management, while water-treatment and pumped-storage projects require additional equity. • Reallocation is intended to optimise fund utilisation, align with current market opportunities and support ongoing project pipelines.

Implementation timeline and approval Management targets full deployment of the remaining IPO funds by end-2027. The proposed changes require approval via ordinary resolution at an upcoming shareholders’ meeting; detailed documents will follow. The board affirms no material change in Shanxi Installation’s core business since listing and views the revised plan as consistent with the group’s strategic priorities.

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